Keep Developers and the CIF Well Away from NAMA

Ireland’s largest housing charity is demanding that developers and the Construction Industry Federation (CIF) are not given a consultative role in the formation of the National Asset Management Agency (NAMA). The call by Respond! Housing Association comes following the recent request by developers, the CIF and its Director General Tom Parlon to provide an input into the creation of NAMA.

According to Respond! spokesperson Aoife Walsh it would be detrimental to the Irish taxpayer if the CIF were to be allowed to influence the formation of NAMA policy as they would only be concerned with protecting the interests of their members.
“We have witnessed a massive push in the past week by certain developers and the CIF to influence politicians with regard to the legislation establishing NAMA. Given the role the CIF and its members played in the current economic crisis, this is simply unacceptable. It appears that the lobby group is seeking to influence NAMA with little regard to the effect it will have on ordinary citizens. It is a disgrace to suggest that home buyers are equally to blame for the property bubble – rising private market rents and lack of social housing simply meant they were left with no option. Greed, the desire for massive profits and lack of implementation of the Planning and Development Act 2000 to control the cost of land, are the main reasons the Irish taxpayer is now being forced to finance the transfer of large developer loans to NAMA.”

Respond! supports the establishment of NAMA but is seeking guarantees that homeowners, and not only large developers and the banks, will be protected. The housing charity is concerned that when the repossession moratorium agreed as part of the bank guarantee scheme expires in February 2010, the rate of home repossessions will continue to increase dramatically.

“Despite the proposal of a capital gains tax levy of 80% on any windfall gains made on the sale of rezoned lands, we feel the Bill doesn’t go far enough to protect homeowners who may be in danger of repossession” added Ms Walsh. “The government and Minister Lenihan must do more to help these people as there simply isn’t enough social housing available to families evicted from their home. It is an estimated that more than 25,000 families are currently in mortgage arrears, an increase of almost 80% on the number last year” concluded Walsh.

Respond! is also calling on NAMA to work with the social housing sector as it maintains that with proper financing it could take thousands of unsold homes off the property market to help ease housing waiting lists.