Ms Maria Graham:

I thank the Deputy. There were a number of issues raised about oversight and governance. We have set this up to be a commercial State body, with a view to it being off-balance sheet. That is ultimately a matter for the CSO and EUROSTAT to decide, but we take into account our best judgment in establishing the governance, oversight and models for trying to balance all components of European Union state aid and public procurement rules, as well as commerciality. A commercial body needs to act economically within a market. That is part of the balancing of the percentage of affordable housing.

There are a couple of components to oversight. The shareholding Ministers are the Minister for Public Expenditure and Reform who holds the majority share and the Minister for Housing, Planning and Local Government. There are the normal activities in which a commercial body needs to engage for the shareholding Minister. There will be a shareholders' expectation letter, setting out all of the requirements, with a code of practice for State bodies, setting out the elements of strategic plans and financial accounts, some of which is also reflected in legislation. A particular element, which is similar to Home Building Finance Ireland, is that the Land Development Agency will be accountable to the Committee of Public Accounts and the Comptroller and Auditor General. There will be direct Oireachtas oversight in that regard.

In common with other commercial bodies and the process for parliamentary questions, the arrangement is that the Minister will answer questions about the policy elements, while the day-to-day arrangements will include facilities for Oireachtas Members to receive prompt answers to questions. That will be required of the Land Development Agency, but it will not be through the parliamentary question system.

There are a number of complexities surrounding the position of being on-balance sheet or off-balance sheet, as described by the Deputy. It is quite complex. Currently, the agency's funding under the establishment order comes through our Vote. It is within government. When the Central Statistics Office has the legislation, business plan and all of the other elements, it will make a judgment.

The legislation is trying to comprehend all eventualities, including in the short term and potential powers the Land Development Agency may need in the longer term. Some of the issues such as the 40% figure mentioned by the Deputy are, therefore, dealt with as part of Government policy rather than being written down in legislation because it applies not only to the Land Development Agency but also to other bodies disposing of land outside these arrangements. It is a broader matter.

I believe I have answered the Deputy's questions and Mr. Coleman will follow up on them. He will explain in more detail the market value model. In the context of providing for what happen in the longer run, it allows for acquisition. The other component is that an equity investment can be made. The land will be valued and it will take account of the fact that there is affordable housing to be developed on it. It will take into account the state of the land with reference to the required infrastructure. In the transfer the Land Development Agency will take an equity investment, rather than having to hand over cash.