Rules for developers greatly changed, seminar told

THE RULES governing what the banking sector can do to support property development have changed fundamentally in the last nine months, and that change became permanent in the past few days.

That is the view of David Brophy, chief executive of one of Ireland's largest construction companies, Ballymore, which has extensive interests in Ireland, Britain and Asia.

Addressing the opening of the La Touche Legacy Seminar in Greystones, Co Wicklow, yesterday, where he was standing in for Ballymore founder Seán Mulryan, Mr Brophy said the changed environment for developers and banks would have to lead to a new understanding between local authorities and developers.

He said in the past the banks had comforted property developers even when money was tied up in land and the planning process for the best part of a decade.

But he said in future "banks will not be able to provide the funds because their boards simply won't let them".

"In future," he said, "developers and local authorities need to work together" in ensuring delays of that magnitude do not happen.

"People lose sight of the cost of a delay of a year, people lose sight of the cost on interest on capital."

He said planners and builders working within local area plans would have to streamline the process, and if there were cost savings because of that, then the savings could be shared with the local authorities and the community.

But he said that the announcement in recent days that Ballymore had signed a deal which would result in a new US embassy for London being located on one of its sites in Battersea was proof positive that Irish companies could still hold their own internationally.

He said despite the poor environment, property deals could still be done and local and national government "could still find a balance" in what was required of a development.

He was supported by the director general of the Construction Industry Federation, Tom Parlon, who said pre-planning meetings would in future have to be more comprehensive and, for larger projects, involve senior local authority management.

Earlier, the start of the seminar was interrupted by Bray Sinn Féin councillor John Brady, who insisted on reading a statement denouncing Ballymore's track record in Bray.

Mr Brady remonstrated about the failure of Ballymore to develop a prime site in the centre of Bray town for a shopping centre, a move which had, he said, left much of Main Street a derelict site.

"Ballymore is not welcome," he said before leaving the room.