CONSTRUCTION INDUSTRY:THE BANKS that will benefit from the National Asset Management Agency (Nama) rescue plan should make a commitment to lending to the wider economy, one of the country's biggest property companies told the agency's managing director.
The Construction Industry Federation (CIF) and a number of other interested parties wrote to interim Nama managing director, Brendan McDonagh and Minister for Finance Brian Lenihan after the draft legislation for the rescue scheme was published.
The federation submitted two reports it commissioned on the legislation, while members wrote to politicians, including Minister, for Foreign Affairs Micheál Martin and Minister of State Tony Killeen in support of the federation’s case.
Documents released to The Irish Timesunder the Freedom of Information Act show that John Bruder, managing director of the John Ronan and Richard Barrett-backed Treasury Holdings, wrote to Mr McDonagh suggesting ways of guaranteeing that the participating banks begin lending to the wider economy.
The company said participating institutions should undertake to loan a certain amount back to businesses, that these should be new loans and not reclassified overdrafts, and that the Nama board should monitor this every month.
Treasury Holdings is the biggest shareholder in the stock market-listed Real Estate Opportunities (REO), which welcomed Nama a on the grounds that it would be good for the economy. Mr Bruder told The Irish Times recently that it believed Nama would be good for the economy.
The federation and treasury criticised the fact that the legislation made no provision for ensuring that the Republic has viable and efficient property and construction sector in the future.
The federation also warned that the proposed 80 per cent windfall tax on capital gains that result from rezoning land would act as a disincentive to investment, potentially penalise landowners who are not involved in construction or development and create artificial peaks in different local markets.
It also expressed concern about the fact that property owners whose loans go into Nama cannot sell or deal in other land over which the agency has no control, without first consulting with it.
