Mr. John Coleman:

I thank Senator Boyhan for some of the points raised. A very good example is the site in Shanganagh, which is live and perhaps the most advanced project we have with any local authority. If the LDA is to build and operate mid-market cost rental homes on that land, it will be required to transact on that portion of the land with the local authority at some level. As the Senator rightly pointed out, the EIB or any funder to which we are speaking will look for some form of effective security if we are borrowing to enhance the productivity of the land to enable our construction, just like a bank would seek security on the land. It does not have to be the freehold but could be a leasehold of sufficient length to allow it to have an effective security position if things were to go wrong. That element of it might require the application of section 183, but everything that happens up until then will be done in partnership with the local authority. The relationship that has developed in the past year has been very good. There was an initial question mark over what it actually was and how it would work as far as the local authorities were concerned. It goes back to the issue of avoiding duplication. Where people are doing things well, we do not want to upset them. It is only where we can add something to the mix that we will do so. That goes back to the Bill and the functions it contains to facilitate work with local authorities to assist and advise them where they require it. The relationship with local authorities is generally good and when we are ultimately transacting with them, it will have to be on a level that is acceptable to them. There are reserved functins such as those in section 183 to be considered.