Mr. Paul O'Neill:

I thank the Deputy. He mentioned land costs but I would add the construction market and construction costs to those as well. The sites we are looking at are viable but the cost depends on the tenure mix and the delivery model, be it cost rental or affordable purchase. To give an example, affordable purchase for apartments may not work because of the requirements relating to the cost of building, whereas the cost rental model, given the rental yields, may be a more attractive model in that respect. It is about looking at the different options.

The Deputy is right that procurement processes probably take too long and we see it across all the delivery models on which we are working. They cannot be avoided, however, and while they are difficult, we try to bring to bear our experience of other delivery models and try to make them as streamlined as possible. There are, unfortunately, set requirements, be they 12, 15, or 18 months longer for procurement delivery on these projects. From a policy perspective, we are advising on various different products and offerings on these sites. We are certainly not saying the sites we mentioned are a panacea or a way to deliver everything. While there is a private element to these sites, the State is getting back a contribution for that private piece which it can use to reinvest.

There is a significant social element to these schemes. To answer the Deputy's question on the social mix, there is generally 30% social housing on these sites as well. Local authorities also specify the nominees for the ultimate purchasers of those sites, which is important. The procurements are not structured in such a way that the private sector or market just runs and develops the private piece as it sees fit. That is the benefit of the procurement process. The sites have to be progressed in line with the aspirations, technical and planning quality, and tenure mix the local authorities have in mind. The local authorities bring that element of control throughout the development process.