Madam, – The Nama legislation strictly prohibits sales by it of property back to developers or connected parties.
This is very “politically correct”. It is also most ill-advised and self-destructive in economic terms.
There is a critical need for sales by Nama in the least unfavourable market conditions achievable. These would generate cash desperately required for State coffers. They would also help towards restoring something like normal market conditions and regeneration of activity in the construction sector.
As it is, many builders/developers have fled offshore. It would be infinitely preferable if they were instead encouraged to remain in Ireland and raise new finance from non-Irish banks to buy back some of their properties.
That alternative approach could greatly facilitate the regenerative process. It would also provide the prospect of profits which could then be applied towards settlement of their outstanding liabilities to the Irish banks/Nama – from which, contrary to common portrayal, they have not been “bailed out”.
In their absence, the best of the properties may well be sold by Nama to others at unnecessarily lower prices, resulting in further losses, on the double, to the State and its taxpayers.
Last week the Taoiseach aired unfounded rumours that the prohibition is not wholly effective (Home News, June 14th). Surely the Government would be much better occupied urgently reviewing the effects of the prohibition and how seriously those are contrary to the real interests of the State and its citizens. – Yours, etc,
Madam, – I read that there is concern in some quarters that people who had property taken from them by Nama may be buying it back at knockdown prices. The Government should enact legislation barring anyone who lost the property from being allowed to purchase, directly or indirectly, any Nama property for a period of, say, 10 years. It should be deemed a criminal act if they are found to have used a front company or agent to purchase or hold Nama property for them during that time. Penalties should include mandatory incarceration for both the buyer and agent.
Incarceration is a necessary penalty because these people would be committing an injustice to the Irish people.
If suitable legislation with severe penalties is not enacted, I have no doubt that a good number of these property owners/developers will, possibly using funds spirited out of the country illegally during the “Tiger Years”, orchestrate the purchase of valuable properties at firesale prices. There should not be a time limitation on their prosecution. If there is no limitation, then any of those foolish enough to indulge in an illegal buying spree will spend the rest of their lives looking over their shoulders. – Yours, etc,