WITH MOST banks no longer providing finance for the property market, the Government should direct them to resume lending to the industry as a quid pro quo for the guarantees afforded to them.
This will be the thrust of what Fine Gael heavy hitter Phil Hogan will tell the Institute of Professional Auctioneers and Valuers at their annual convention in Killarney this weekend.
Mr Hogan will also suggest that local authorities should review their stock of affordable homes because many of them are priced above open market values. The restrictions and conditions which apply to these sales also need to be withdrawn. Finally he will recommend that the lowest rate of VAT should be cut from 13 to 10 per cent until 2011 in order to bring down new house prices by around €10,000.
John Beggs, AIB chief economist, who will also be on the Killarney platform, is unlikely to rise to Mr Hogan’s bait, leaving it to the mandarins in the bankcentre to handle highly sensitive liquidity issues.
With the whole estate agency business in the doldrums, a visit to Killarney’s former Great Southern Hotel – now known as The Malton – is bound to raise spirits.
Delegates can also expect a warm welcome from the Ceann Comhairle, John O’Donoghue, who will be the guest at Saturday night’s formal dinner.
