THE MANAGING director of one of the Republic’s biggest building businesses says that the Government should consult with the construction and development industries before going ahead with Nama.
Michael O'Flynn, managing director of O'Flynn Construction, told The Irish Timesyesterday that builders and developers have a role to play in the recovery process, which looks set to hinge around Nama.
He argued that, as well as taxpayers, Nama itself and the banks, borrowers were also stakeholders in the process.
“We need a consultative role to make sure that what emerges from this situation is a worthwhile industry,” Mr O’Flynn said.
“I would say that what we are looking for is direct interaction with the Government on the Nama legislation because it is important to all people in the property and construction sectors.
“It’s vital that Ireland has functioning property and construction industries which can play their part in the overall economy.”
He pointed out that the country would need both sectors once the economy begins to recover from recession, and rejected suggestions that the existing industries could be easily replaced once that recovery begins.
Mr O’Flynn argued that the industry provides offices, factories, retail outlets and a range of other facilities where people work and where economic activity takes place. “We need to emerge with those skills intact.”
He said there were 1.1 million people working in the Republic in 1989, and there are currently 1.95 million, and explained that those who joined the Republic’s expanding workforce during that period were working in facilities built by members of his industry.
Cork-based O’Flynn Construction has been in business for 30 years. One of its more high-profile projects is the 83m Elysian Tower in the city centre, which is Ireland’s tallest building.
The company has an estimated €1 billion worth of projects under way in Ireland and abroad.
Speaking to RTÉ earlier yesterday, he accepted that serious mistakes were made on the way to the property and construction crash, and said he believed developers had to accept some of the responsibility for that.
He also pointed out that poor planning, particularly decisions to rezone land that should not have been rezoned, played its part.
Under the draft legislation, Nama will take over both “good” loans – where borrowers are meeting their commitments to the banks – and bad loans – where borrowers are in difficulty.
The agency will deal with domestic banks covered by the Government guarantee on deposits and other liabilities introduced last year. It will effectively step into the banks’ shoes, meaning that the borrowers will repay the agency rather than the banks. However, debate over how the agency will work is continuing.
Mr O'Flynn told The Irish Timeslast night the current uncertain situation should not be allowed to drag on. "We have the past, the present and the future, and the longer the present lasts, the more difficult life is going to become."
