Auctioneers concerned over Nama exclusion

A MAJOR auctioneering body has expressed concerns about the possible exclusion of Irish property valuers from the State’s new toxic debt agency.

The Institute of Professional Auctioneers and Valuers (IPAV) is to write to the Minister for Finance seeking clarification on its role, if any, in the work of the new National Assets Management Agency (NAMA).

According to Alan Redmond of IPAV it appears that Irish agents are to be excluded from the process of assessing toxic debt, because agents were seen to have caused price inflation during the property bubble.

“There appears to be a rumour out there that Irish agents caused prices to inflate during the property boom,” Mr Redmond said.

“That is utterly untrue. All agents did, or do at any time, is obtain the best price for the client offered by the marketplace — which he or she is obliged to do. The duty of care of the agent is to his or her client alone.”

However, the IAVI’s Alan Cooke said the exact nature of what is to be undertaken has not yet been stated.

“There is a tight time schedule and, therefore, it is quite possible that individual valuations of hundreds to perhaps, thousands of properties, will not be commissioned,” he said.

Instead, he envisages a situation where a sample of properties is valued and used as a base for any proposed write-down.

The second alternative, according to Mr Cooke, is a percentage write-down calculated on market evaluations.

This, he said, would be an actuarial calculation rather than a straightforward valuation exercise.

However, the IPAV is to press the minister for clarification on its member’s future role, if any, in the NAMA process.

“Any move by the Government now to try to discredit Irish auctioneers and estate agents as in some way being to blame for inflated prices, or incompetent to value sites and buildings, is utterly unjust and unfair,” said Mr Redmond.

“We will be writing to the Minister for Finance to ensure that no such measure is included in the upcoming legislation.

“It would be highly unethical and improper of the Government to hire-in outside valuers from another country who have little or no knowledge of the Irish market and to ignore the very professionals who are most qualified to do the job.”

The IAVI has also made approaches to Government and said it is “disappointed that what may have been loose talk at official level, has cast a slur on an entire profession”.