Mr. Barry O'Leary:

Ms Carroll has dealt with most of the questions from Deputy Dowds. There are four sources of funding for the HFA. We borrow money from the NTMA, we borrow money from the European Investment Bank, we borrow from the Council of Europe Development Bank and from local authorities, because we offer a facility for them to manage their short-term cash flows. They put surpluses of cash flows with us on a short-term basis, which we use as a source of finance. All those sources are Government guaranteed and allow us to offer the rates we offer, which Senator Keane identified as being particularly good. The approved housing body rate, which we offer at 3.25%, is significantly below the rate at which other lenders in the market would be able to lend, and rightly so because we are a semi-State body and do not have a profit motive. We just need to manage our own agency on a break-even basis. The rates we offer to local authorities are significantly cheaper because there is less risk associated with lending to local authorities. We can lend money to local authorities at quite a low rate, 1.5% or 1.75%.