Errors of Judgement Begin to Surface!

January 31, 2010

According to Daniel McConnell Chief Reporter with the Sunday Independent 31 January the Nama plan is set to cost the taxpayer far more than previously expected., ‘because of rock-bottom valuations for “worthless” properties being transferred to NAMA.

“The process of cleaning up Ireland’s banks is now two-and-a-half months behind schedule amid tense negotiations over valuations”

This is in line with predictions in this blog and elsewhere as to the difficulties that would beset the NAMA project in terms of valuations and timescales.

It is a matter of supreme irony that the expense incurred by NAMA will ultimately be another waste of taxpayers money if the end result of protracted negotiations in an expensive process will ultimately give a result that would have been given by immediate nationalisation of those banks the Government wished to save. It looks like nationalisation is on the cards for the majority of NAMA banks.

“The taxpayer is already invested in the banks to the tune of €11bn, with €3.5bn in both AIB and Bank of Ireland. A further €4bn has also been ploughed into the nationalised Anglo Irish Bank”.

Unfortunately, the banking inquiry set up to inquire into the financial collapse of the above banks has not been extended to include an investigation into the Government’s response to this crisis through the setting up of NAMA. Nor does it appear thst the public will be given any official role in the inquiry. You can, if you wish, send a question to the inquiry through this form http://www.namasayno.com/question.cfm

One advantage of the above delays is the Government gets more time to put off the fateful day when its projected figures and ultimate cost to the taxpayer get set in stone for all to see. The difference between Government projections and accounting realities become apparent as each day goes by.

According to Eamon Keane in the same paper above, the Government narrowly averted disaster when “Green Party Chairman and finance spokesperson Dan Boyle last week offered his resignation to party leader John Gormley”

“Mr Boyle, who played a pivotal role in the renegotiated Programme for Government was upset and dismayed at Taoiseach Brian Cowen’s statement that a major part of the banking inquiry’s work would be held in private”

“Speaking on Newstalk Lunchtime Show on Friday, Mr Boyle said he would look favourably on Mrs Justice Catherine McGuinness’s proposal for a more open form of inquiry.”

It remains to be seen what, if any, amendments will be gained by the Greens for the proposed inquiry. In the light of previous experience it is rather more likely that the dissident opinions of individual Greens will be further eroded by Mr Gormley’s project of coalition and power at any cost, even the silent capitulation and zombie conversion of outspoken Dan Boyle.

end

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