Ms Cathy Bryce:

Everybody would probably say there is too much reliance on the rental sector social housing and that we should try to move to more ownership and control by the State. The Chairman asked about the best use of public land. With the PPP schemes the land remains within the State and if it is felt that it is not the best use over time, a change of direction could come about. Some of the land initiatives will provide private and affordable housing. It is really a matter for the Department as to how best to utilise that resource. No matter what, it will go towards providing housing in the broader concept, so it is going some way to helping to resolve the matter and ease house price inflation.

There was a question on whether this quantity could be supplied in the same way if everything was done through direct building. I may have answered the question already. Given the very significant demands in terms of quantities to be provided, we should use every channel and, as I stated, keep them up and running rather than stepping them down only to step them up again at some point in the future. That makes sense as much hard work goes into trying to set both PPP, land initiative and enhanced leasing schemes. There is much devil in the detail for both local authorities to be happy that these are good schemes that they can operate and for the Department to be happy with them. The private sector must first be able to understand them and then be able to bid on them and try to get some efficiencies in the replication. It appears we are at a juncture. Demands are so high that we should try to use all channels for delivery.

The question on the number of units relates to the third bundle of social housing. It is envisaged this would be approximately 500 units. We do not have any visibility of any more sites currently. It is a decision for the Department. We are keen to try to keep the channel open but there are many other considerations relating to sustainability and macroeconomic factors. As members are aware, the PPP schemes are 100% social housing and localities must be considered for suitability with regard to mix in an area. There are many considerations in that regard.

There was a point about the lowest price tenders and we are acutely aware and conscious of that. We are afraid, I suppose, of the private sector making too much profit from schemes but also of underbidding, as has happened in some cases, before contractors get into trouble. In the end, this causes a problem for the State if it has to step in to resolve the matter. With regard to PPP bidding criteria, 60% of marks go towards design, quality and management of the scheme, with 40% going towards the financial aspects. That helps achieve balance in the tender. Our sense is that the bid is very competitive across each of those criteria, which is important.