Seán Sherlock (Cork East, Labour)
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Question 55: To ask the Minister for Finance if his attention has been drawn to instances in which landowners or property developers were seeking planning permission or land rezoning with the intention, not of building, but of inflating the value of the land before the associated loan is transferred to the National Asset Management Agency; his views on this development; if he foresees significant financial implications for NAMA from this phenomenon; if he will take steps to put an end to this practice; and if he will make a statement on the matter. [44879/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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NAMA is being established to purchase certain portfolios of risky loan assets from the balance sheets of participating institutions. Loans will be valued in accordance with the valuation methodology set out in Part 5 of the National Asset Management Agency Act 2009.

The security for eligible loan assets will include property and as part of the valuation process the security of each eligible loan asset will be valued in accordance with the terms of the Act and the valuation regulations.

I am not aware of instances of application for planning permission as suggested by the Deputy. Any such application would be a matter for the relevant authority to assess on its independent merit.

The valuation process will take into account a number of factors including whether planning permission has been granted in relation to the property. However, NAMA's valuation of properties will be based on its assessment of their long-term prospects. Just because a poorly located site has planning permission it does not necessarily follow it will be acquired a higher current value.