Mr. Barry O'Leary:

On the possibility of such homes becoming social housing for the elderly, as we outlined in our opening statement, we do not actively go out looking for business. Local authorities or voluntary housing bodies come to us with projects for financing. Our role is the wholesale raising and lending of finance. We do not get involved in the development side in any shape or form. We have a staff of 11 and our expertise is in raising moneys, lending them to the local authorities and getting it back.

We have never considered getting involved in lending to individuals. Purely from an operational point of view, we have a small staff and, accordingly, it is not practical. We would have a whole range of risk assessment issues that would have to put us on a footing similar to that of a bank. The model used since 1984 is that the local authorities carry out that function on our behalf. They have the relationship with the individual. It is their responsibility to get the money back on shared ownership loans. Our lending relationship and, accordingly, credit risk is with the local authority. The reason we are successful is that we have managed to stay small and focus on our business which is to raise money cheaply, lend it to local authorities and allow them to do the real work.