TD slams plan to 'shore up' major banks
A Cork TD has suggested that market forces be allowed take their course in relation to Zoe Developments, companies which owe the banks almost €3bn.
Deputy Ciarán Lynch said an attempt to have the companies placed in the care of examinership might save them from liquidation, but would also mean that an opportunity to get an indication as to what the actual market value of property-related assets were would be lost.
The move into examinership would protect the companies from their creditors for 100 days during which time owner Liam Carroll would be given time to come up with a plan to save them.
The placing of a company into examinership has to be approved by the courts.
The ongoing court case involving Zoe Developments, back at the Supreme Court next Tuesday, brought into sharp focus the question as to what the actual value of various property-related assets actually are Deputy Lynch said.
The Government’s strategy based on the setting up of National Asset Management Agency (Nama) was one massive gamble with public money, that in his analysis would only pay off with a return of the property boom.
Given that this was the kind of mindset that created the difficulties, one must question, not only the Government’s direction on this but the basic logic of their whole approach.
“What is required is a solution that is in the country’s interest, rather than in the interests of bank shareholders,” he said.
“The last thing the country needed was the Government exposing the taxpayer by taking on risks, based on assets whose values were “bloated and over-inflated, all to shore up the major banks.
“The court case must take its course and if the end result meant that we could set a benchmark for the market value of property assets, before Nama puts us into hock for decades to come, all the better.
“The case should be decided on the basis of the greater common interest. If that resulted in the winding up of companies like Zoe Developments, then so be it.”
