Written answers

Wednesday, 14 October 2009

Department of Environment, Heritage and Local Government

Departmental Properties

Photo of Noel CoonanNoel Coonan (Tipperary North, Fine Gael)
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Question 118: To ask the Minister for the Environment, Heritage and Local Government the way in which his Department, its agencies or local authorities will calculate long-term market value of property portfolios to be included in their annual accounts; whether this methodology is the same as that proposed for NAMA; and if he will make a statement on the matter [35931/09]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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This Question anticipates legislation that is currently before the House and as such it is premature to arrive at firm conclusions regarding its impact on my Department, agencies under the aegis of my Department, or local authorities.

My Department has no land or other assets which are subject to borrowings. The valuation of assets in the accounts of agencies is a matter for the board of the agency concerned; the accounts are prepared in compliance with relevant accounting standards and are audited. As I indicated in reply to Question No. 105 on today's order paper, my Department and the Department of Finance met with the Dublin Docklands Development Authority in July. It was agreed that the Authority would await the publication of the National Asset Management Agency Bill 2009 and also have regard to the guidance for the treatment of impaired assets, prepared by the European Commission and the European Central Bank, in valuing its property assets.

Local authorities possess a number of assets, including land, which have been acquired or developed on foot of authorised borrowings. These assets are utilised and developed by local authorities, as appropriate, or remain available to the local authority for future development. Their accounting requirements are set out in a Code of Practice on Local Authority Accounting in Ireland issued under the Local Government Act 2001.

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