Mr. Brendan McDonagh:

I will revert to a couple of questions asked by Deputy Barry Cowen. He referred to local authorities and their reasons for refusing. He will appreciate that they only tell us their reasons for turning down properties. We will put the information together and send it to the committee. There is no issue in that regard. Tenure mix and concentration are given as two of the main reasons. The Deputy mentioned that 32 units were in poor structural condition. We have always told local authorities that if there is anything that is not of the standard they want, we will raise it to that standard. There is no question of our not providing funding. I just want to correct what was said.

We charge market lending rates. Typically, our margin is 8% to 9% over the six-month EURIBOR rate, which is comparable with the rates available in the market. Everyone refers to the high rates being charged, but they apply to one element only. I might explain this to the committee. On senior debt, banks typically lend 5% coupons on approximately 60% of the total. Five per cent of 60% is 3%. On approximately 10%, one can borrow equity on 20% coupons, which equates to a figure of 2%. The mezzanine piece of the bill used to be approximately 12%, but mezzanine financiers have reduced their rates which are negative among central banks. To make money, they have reduced their rates to 10% and 10% of 30% is 3%. Adding 3%, 2% and 3% gives 8%. Typically, one can borrow at 8% or 9% from the private sector. We are changing the same rate. As Deputies will appreciate, given state aid considerations, we must do so.

Regarding Part V obligations, NAMA debtors are like any other builder in the market and want to be treated the same. If builders not in NAMA only have an obligation to provide Part V housing to a figure of 10%, NAMA debtors will have the same obligation. It is a policy matter. Regardless of whether the level should have stayed at 20% instead of 10%, the law will be complied with and our debtors will have the same obligations as others in the market.

On the question about Project Arrow, I do not have the detail with me, but Mr. Whelan will revert to the committee with the information, if that is okay.