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NAMA Property Sales

Dáil Éireann Debate, Tuesday - 18 December 2018

Tuesday, 18 December 2018

Ceisteanna (139, 140, 141)

Bríd Smith

Ceist:

139. Deputy Bríd Smith asked the Minister for Finance if his attention has been drawn to the fact that the removal of height restrictions has a major upward impact on site value of the lands sold and that the price obtained for the land disposed of by NAMA recently is thus considerably less than could have been obtained; and if he discussed the likely impacts with NAMA officials before it disposed of lands. [52841/18]

Amharc ar fhreagra

Bríd Smith

Ceist:

140. Deputy Bríd Smith asked the Minister for Finance if NAMA had been informed of the forthcoming changed height regulations but continued to completion with such sales; if so, the reason NAMA was permitted to dispose of such sites at considerable discount to its subsequent revaluation; and if he was advised of these sales and disposals prior to the announcement on height restrictions. [52842/18]

Amharc ar fhreagra

Bríd Smith

Ceist:

141. Deputy Bríd Smith asked the Minister for Finance if he discussed the likely impact on land prices, and specifically NAMA-controlled sites, of the measures on height restrictions with either the Minister for Housing, Planning and Local Government or officials in his Department or outside agencies or bodies; and the details of discussions and meetings that took place at which these height restrictions were discussed. [52843/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 139 to 141, inclusive, together.

Earlier this month the Department of Housing, Planning and Local Government (DHPLG) published guidelines for planning authorities entitled “Urban Development and Building Heights” available at: Urban development and building height guidelines

Responsibility for issuing those guidelines is the exclusive competence of the Minister for Housing, Planning and Local Government, as outlined in section 28 of the Planning and Development Act 2000. I wish to advise the Deputy that no discussions concerning these guidelines took place between me and the Minister for Housing, Planning and Local Government or between the Department of Finance and outside agencies, either generally or in relation to the price of land associated with NAMA.

Furthermore, NAMA did not have any involvement in the drafting of the new planning guidelines for building heights, nor was it consulted by DHPLG prior to their publication.

The Deputy will be aware that Section 9 of the NAMA Act provides that NAMA is independent in the performance of its functions and that I, as Minister, have no role in relation to its commercial operations or decisions. I wish to advise that I did not discuss the impact of the removal of height restrictions with NAMA. Nor did I discuss with NAMA any plans that its debtors and receivers may have had to dispose of particular assets. Under State aid rules, NAMA’s debtors and receivers operate in the same manner as, and in competition with, other commercial market participants and therefore there is no question of NAMA debtors and receivers being provided with advance notice of proposed Government initiatives when such information is not available to the market in general.

I am advised that NAMA did not have any involvement in the drafting of the new planning guidelines for building heights, nor was it consulted by the Department of Housing, Planning and Local Government (DHPLG) prior to their publication. NAMA became aware of the draft guidelines in August 2018 when they were published by the DHPLG for public consultation. The finalised guidelines were published in December 2018. I wish to point out to the Deputy that decisions in relation to the disposal of properties are a matter for NAMA’s debtors and receivers, acting with the approval of NAMA as secured lender. I am advised that the timing of such disposals is influenced by a range of factors, including current and prospective market conditions, the level of demand for the asset types involved and the availability and cost of finance to potential purchasers.

It is my understanding that the new planning guidelines do not imply that objectives within SDZ Planning Schemes will necessarily change nor do they imply a blanket lifting of height guidance. Rather, I understand that the guidelines are intended to provide direction to local authorities and An Bord Pleanála on the assessment of planning applications for residential and commercial proposals, subject to specific planning criteria.

As regards the sale of a NAMA-secured site mentioned by the Deputy in the Dáil, which was openly marketed as Block 3 in the Docklands, I am advised that the sale completed at end-July 2018 prior to the issuance of the draft guidelines by the DHPLG in August.

With regard to sites secured to NAMA which have not yet been sold, I am advised that NAMA will work closely with its debtors and receivers in order to ensure that the potential impact of these guidelines is fully considered when devising strategies for the sites.

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