The Irish Auctioneers and Valuers Institute has urged to Government to 'urgently' find a way of dealing with the banks' toxic debts.
In its pre-Budget submission, the IAVI's President Edward Carey said that until the banking sector comes forward and declares its hand and honestly sets out those of its debts that are recoverable and those that are not, the economy will remain in a stranglehold.
He explains that without knowing the full extent of these bad debts, funding from international investors remains at a standstill, stopping the flow of money into small firms and the first time home buyers' market.
The IAVI also says that if the Government decides to reintroduce some form of property tax, it must reduce or abolish stamp duty. 'Any hope of activity in the market will be quashed if a property tax is introduced in addition to the current penal stamp duty rates,' Mr Carey said.
It also urges the Government to consider tax relief, or a rebate, in VAT for first time buyers and says that banks should continue to pass on ECB rate cuts to all homebuyers and investors.
Turning to the problem of people finding themselves in negative equity, the IAVI says that banks are refusing to accept the current commercial realities and share their burden of the hit that everyone else is facing.
