Mr. John Coleman:

While that will obviously assist with the delivery of affordable accommodation, that is a policy matter for Government. The issue is much more complex than pure value. One has to look at sites on a site-by-site basis. For instance, we have access to a site in Balbriggan in north County Dublin where the general area has relatively high levels of social housing and State-funded housing. It might be appropriate to diversify social mix to facilitate the delivery of private or affordable homes in that site. The decision is taken on a case-by-case basis. It could even be that the market value of a home in that area will be relatively affordable compared with other locations. The issue has to be looked at on a case-by-case basis.

I am ad idemwith the Deputy that the cost of land is generally a difficulty in the market. One of the issues I recall from my previous life is that a seller trying to get someone to pay as much as possible for the item being sold, which is land in this case, is always looking for competitive tension because there is a limited supply of what is being sold versus the number of people seeking to buy that item. That scenario, whereby a large number of people were chasing land, has pertained until now, although the position has been alleviated somewhat in more recent months. Potential buyers can do as many spreadsheets as they wish but, ultimately, they must consider what their competitors will bid. This competitive tension ramps up values and part of the reason for that is there are not enough land development opportunities available. Part of our mandate is to make more land available for development by utilising State land and other land where we can. This will remove some of that competitive tension from the land market. The objective is to have the competition element arise when the homes are completed and sold or on the basis of innovative construction measures that deliver homes more cost-effectively, rather than at the point at which the raw material - the land - is being purchased in the first place. I agree with the Deputy's sentiments on land costs.