Valuation Panel

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canicemcavoy

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The draft NAMA legislation includes the following:

96.—(1) There shall be a valuation panel to adjudicate on disputes referred to it by NAMA under section 72 and section 76.

(2) The valuation panel shall consist of such, and such numbers of (not exceeding 12) persons as the Minister determines and appoints to be members of it.

(3) The Minister shall appoint a person as a member of the valuation panel only if the Minister is of the opinion that the person has relevant expertise or specialist knowledge.

(4) The terms and conditions of appointment (including remuneration and reimbursement of expenses incurred) of a member of the valuation panel shall be as the Minister determines
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The problem is - how can such a panel enjoy any public confidence? Unless those appointed to it from either banking or property sectors can prove a track record of being critical of bubble-era prices, then their judgement is proven to be flawed.
 
Wonder if it will include the same "valuers" aka auctioneers and estate agents who were telling the public that there was great value in property in 2007 .
 
The incentive package is crucial. If they were only paid if NAMA made a profit over a 7 year timeline and fined if it made a loss, their knowledge would be put to good use.

Of course this would imply 50%+ writedowns so it would thwart the real purpose of NAMA (bailout) as opposed to the stated purpose...
 
Nermal said:
The incentive package is crucial. If they were only paid if NAMA made a profit over a 7 year timeline and fined if it made a loss, their knowledge would be put to good use.

Of course this would imply 50%+ writedowns so it would thwart the real purpose of NAMA (bailout) as opposed to the stated purpose...
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Absolutely. I'm willing to bet that, for example, Morgan Kelly won't be one of the 12 people invited onto the valuation panel. We'll get 12 people who will have a track record of going along with the status quo. I'm sure that several of them will have, at least once during the bubble, mentioned something about "fundamentals" and "sound", and perhaps even used the word "paradigm".

It'll be like asking a group of people who can't tell a banger from a new car to evaluate the second-hand car market.
 
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