Barry Cowen (Offaly, Fianna Fail) | Oireachtas source

I apologise for my late arrival. I thank the delegation for the presentation which I read earlier. We are on the same page in regard to many aspects of it, including the savings schemes and the recognition of those who are renting properties. I give some credit to the review on deposits conducted by the Central Bank. In regard to the landbanks, the audit of them and the potential for development, I seek the opinion of the delegation in respect of the joint ventures that may be possible with local authorities and the incentive in terms of VAT refunds. A reduction in VAT might be something that could be explored.

We are on the same page in respect of town renewal and regeneration schemes. Has the delegation any suggestions or legal opinion on the CPO legislation and its potential for exploration where the local authorities could take the lead? I would not agree totally with the way in which the CIF seeks to revise the development levies. A holistic approach needs to be taken throughout the country and the Government has a role to play in realising that wish.

I disagree with the view expressed in regard to Part V. Across the whole construction sector we seek to assist private and public development and address the issues of rental and mortgage distress, and a holistic approach would improve the lot of the social dividend for the State. Having played our part in revising that sector, there should be a return on that investment in regard to Part V. Not alone should the 10% be restored but I would like to see the 20% restored. I respect where the CIF is coming from, but if there is an improvement, a benefit must be derived by the State.

My two questions are on certification and compliance costs. I do not think Mr. Parlon referred to these in his submission. It has been said that these cost up to €20,000 for an apartment in Dublin. The costs have been exacerbated in recent years with the new regulations that have come into force. Is the CIF interested in a licence system specifically dedicated to this area and perhaps supervised, managed and policed by local authorities? I do not think the availability of funds was mentioned in the presentation either. That is one of the major stumbling blocks to development taking place at present, namely, the lack of available funds from institutions.

The Government initiated a scheme together with some American funds in which the Government invested €125 million along with €375 million to create a €500 million fund. What rate are CIF members being asked to pay and how does it compare with the mezzanine funds which are far greater than one expect? Is Mr. Parlon open to strategic investment funds being put in place to assist the sector at more competitive rates than is the case? I am sure he will agree that if rates of 15% and 16% are being charged, that will have to be stopped and more realistic proposals will have to be put in place that can help and assist the industry.