Mr. Hugh Brennan:

To respond to Deputy Casey's questions, the factors are land; development levies; the cost of construction, which we take as set because it is not something with which we can interfere and it is not a huge factor; and the labour issue, which is not very significant because we can use volumetric or rapid build construction. We have found that the larger contractors come to us and when we ask them what their capacity is, they say they have the capacity to work with us and build. I am not sure the labour issue is as significant as it is thought to be.

The main factor is the developer's margin because we never really know what it is, as Mr. Moore highlighted. If it is done from a cost perspective, however, and one considers what one gets in return for the land, what the subsidies are and the construction cost, costs can be kept down. The variable subsidy was mentioned. We also talk about it. If one is earning €42,000, one will need a full subsidy to buy one of our houses, which means that the land will need to be acquired at a figure of €100,000, the development levies will need to be waived and one will need to work with a not-for-profit organisation. If one is earning €80,000, however, one still cannot rent or buy, but one does not need a greater subsidy, which is why I like the variable subsidy idea. It can, for example, also be used for affordable rental purposes. We do it, but it can also be done in the case of private rental where two people live side by side and one receives a slightly different subsidy from the other. Ultimately, therefore, they pay different rates.

On the consequences for companies, many companies are interested. Another one at Grange Castle approached us recently. It is expanding considerably and will have 1,500 employees, but it does not know where its employees will live. It is asking us what it can do to help to resolve the situation. We recommend that companies set up a local employees' housing co-operative, which we also recommend in Bray, and then work out what the company can contribute to it. In Bray companies are examining helping people who are struggling with deposits and helping them under a rent-to-buy model which we are also happy to run.

The point about previous co-operative models was fair. We had a good co-operative structure in place in Ireland years ago. Bord na Móna was another example and committee members also provided examples. There is no reason it cannot be repeated. It is done around Europe - in Vienna, Sweden and Denmark - and there are models available. We are not reinventing the wheel and do not have to.

I do not know where the delay is in Shanganagh. We are told that there are infrastructural problems with drainage, but it has been agreed that the land should be passed over to us. If infrastructural issues have to be ironed out, they will be. It depends on the number of houses that are to be built whether it makes financial sense to bring a sewer from 200 yds or a half a mile away. If we acquire a site, it seems to take approximately one year to process all of the paperwork before we can start building. We can start to build quickly. As I keep saying, we have the capacity to do so.

On the project on Mullinastill Road, the council told us that the protocol was in place and that it would prefer to use it. Therefore, it will decide if it wants to release a house as affordable or social housing and it will put it out to a number of local authorities, which is fine. We noticed that the site was zoned and services were going to within 200 m of it. The council has stated it likes the model and will revert to us.

It sees us as a niche operator. As Deputy Ellis said, if a few small houses are to be built here or there, that is probably the type of contract we would get. It referred to land value. The site on Mullinastill Road is near Rathmichael and it is valuable land. I would continue to argue that the State or the local authorities have to stop viewing land as a commodity, rather they should look upon it as a resource. If we view it as a commodity, we would always look for the best price while if we view it as a resource, we would ask how can it best we used, whether for the purposes of providing housing, hospitals, schools, or public parks.