Mr. Justin O'Brien:

Apart from future funding from JESSICA and the European Investment Bank, our present concerns are that in respect of our loan finance under the CALF, the Government is suggesting that the maximum of 30% should be shrunk rather than increased even through prices and rents are going through the roof. The cost of capital that it will allow us when we go the private sources of funds is very much below the cost of mortgages, at 3.6% versus 5%, and probably rising. It is not doable. We will be using up our capital in order to fund projects because we are not allowed 5% across capital. It is an issue for the committee rather than for us, but some kind of German-style control of rents and house prices is probably unavoidable, and preferable to wringing our hands and saying something will turn up, as we did during the boom. We have to act responsibly as a society - provide a return by all means to private investors, as is done in Germany, but also ensure people can have rents which grow slowly and in line with the economy.