30 Jun 2009

Well, kittens, and in particular FPL. I missed this telling sentence from an article by Joe Brennan in the Irish Independent last week which suggests that the steering committee advising on the establishment of NAMA have reached a worrying conclusion. Namely, NAMA won’t be any more effective in turning around bad debt sites than the average liquidator unless planning permissions for developments of unrealistic scale are guaranteed (for up to fifteen years): 

‘The steering committee behind the setting up of the so-called 'bad bank' had looked at obtaining powers to deploy compulsory purchase orders (CPOs) and grant planning permission, similar to that enjoyed by the Dublin Docklands Development Authority. However, it is understood that the Attorney General, who is also on the committee, advised that building such overarching powers into NAMA legislation could drown the whole process in a quagmire of legal proceedings...’

In other words as FPL has already correctly pointed out in his/her comment on the last post, and despite the concerns of the Attorney General (who'll be overlooked), the whole country will soon become a giant DDDA. What an irony: the price we have to pay for fifteen years of terrible planning is fifteen years of worse planning. Or no planning. Or maybe I mean, anti planning. Ooh la la.  

Here’s the full piece:

http://www.independent.ie/business/irish/nama-wont-be-given-any-super-powers-to-deal-with-borrowers-1783097.html

All the jibber jabber in the financial pages and the opinion columns of the newspapers about ‘the best way to go about establishing fair valuations’ for bad debt sites is completely irrelevant. The only way to establish a valuation on any of these sites is to make an assumption about the amount of development which might be permitted. Which means that if the tax payer’s support is to be rewarded, all the NAMA sites must be developed beyond even the levels the original purchasers had in mind.   

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