Madam, – With the National Asset Management Agency (Nama) coming under the aegis of the NTMA and under the direction of Dr Michael Somers, all things being equal, it should succeed in its aims. Subject to the following:
1. That the assets actually exist.
2. That they’ve good title.
3.That a market value be agreed with an objective body (the OPW?)
4. That no bartering be allowed with the banks.
5. That each of the assets be individualised (ie no bulking).
6. That off-shore assets be dealt with last.
Banks will have to write off the difference between the value of bonds given in exchange of each asset and the actual amount received in the market. This is a matter for the banks and shareholders. Clearly, the value of bank shares will plummet; however, what really matters is cash flow.
And, finally, governments are not banks and should resist the temptation to further nationalise any other bank. In this recent debate and debacle, I was shocked to hear comments from so many innumerates in our society. – Yours, etc,
Madam, – The announcement of the formation of the Nama has led to much comment and speculation on how property assets can be accurately valued, as well as who should be carrying out such valuations.
There has been some suggestion in recent days that Nama is unlikely to employ any Irish estate agencies for the purpose of valuing these property assets. The Society of Chartered Surveyors is at a loss to comprehend such a suggestion, which at best lends itself towards an ill-informed understanding of international property valuation for the following reasons:
1. A chartered surveyor is the appropriately qualified professional to undertake formal valuations.
2. Chartered surveyors are bound by the same international valuation standards as those operating in other jurisdictions worldwide. This means that valuation of property assets by Irish banks should be the same as that used by other international banks so there is a level of consistency.
3. Chartered surveyors do not create values nor make a market, rather they endeavour to interpret the market in a professional manner within a strict code of practice.
4. The vast majority of firms employing chartered surveyors in Ireland already have links with international valuation agencies.
Professional valuations are essential to ensure that the assets are taken over at market value (the commonly understood and accepted measure), that the management of these assets are undertaken in a planned fashion in order to enhance value and that the realisation of these assets is undertaken over time so as to maximise return for the country. Any deviation from these principles is a matter for Nama and affected parties.
Chartered surveyors have already been giving advice to Government in recent months. Never before has the economy needed expert advice, knowledge and guidance more than now in playing a part in resolving the banking crisis which has most of its foundations in property assets.
Highly qualified professionals including chartered surveyors are the solution, both in the valuation of the assets and in solutions in how to make those assets profitable. – Yours, etc,
Madam, – Many thanks to Paddy Healy (April 14th) for illustrating how Nama will operate and how defaulting developers will escape their responsibilities. I am sure our politicians will tell us that to pursue developers’ personal and spouses’ assets would be unconstitutional – now there is one referendum that would have a good chance of success. – Yours, etc,
Madam, – As a private sector worker I want to take the opportunity to express solidarity with the concerns of the public sector who have been so vocal and pointed in the belief that they have been singled out for unfair treatment.
To ensure fairness, I suggest we immediately initiate a new round of benchmarking.
This time round there is a perfect comparison group for the approximately 360,000 public and civil servants: the numbers currently registered as unemployed. – Yours, etc,
Madam, – I look upon my nation with despair as a result of its current plight. This plight is not the economic minefield we find ourselves in but our failure to learn from the lessons of history, and our collective avoidance of reality.
During our boom years, we were in denial about the possible future consequences of rampant house price growth, an ever-bulging public service and national pay deals above inflation, while we had a near psychotic belief that the party would go on indefinitely.
Yet this phenomenon of avoidance has continued. It is now considered bad form to raise the issue of accountability for the situation we find ourselves in.
Instead, we must “move on” and seek solutions rather than analyse closely what went wrong. We must respond to the pseudo-patriotic speeches of our Minister for Finance and continue to follow the lemmings who brought us over the cliff.
This is going to be an expensive swim for all of us, yet we cannot ask how we ended up in water in the first place. – Yours, etc,