Dr. Kieran McQuinn:

It is not possible to specify exactly what the targets should be regarding the mix of housing and how much should be social and affordable. In broad terms, however, we echo the view that the emphasis should be more on social and affordable housing. Our research clearly identifies where the bottlenecks are in respect of affordability in the market and demand that is not being met at the moment. In that sense, it is evident there is a need for greater emphasis on the social element.

We are then getting into the old issues of the structure, being off-balance sheet and meeting EUROSTAT regulations and requirements. We have not examined in any great detail the specifics of how the vehicle would be set up and funded. I reiterate, however, that our research shows a greater need for affordable housing in the market. We have been articulating that for the past four or five years. One of the first things that struck me when I moved to the institute and started researching the housing area was the great fall-off in the provision of social and affordable housing from 2008 onwards. In broad terms, therefore, I agree with that assessment.

I may have misunderstood the Deputy initially on the credit issue. I have grasped it now regarding the relative attractiveness of residential accommodation versus other uses for the property such as student, co-living or commercial. That question has arisen frequently during our interactions with people. I refer to the issue of greater activity concerning the provision of commercial property as opposed to residential. It may be being redressed a little now, but I am not certain.

It is hard to see what can be done from a credit perspective. Fiscal instruments could be used to make the provision of residential property more attractive than other types of construction activity. I am not stating that is what the Deputy is suggesting, but those kinds of fiscal instruments have been used in the past but they come with serious health warnings. Much work has been done to examine their impacts retrospectively and the role they may have played in the property bubble. It is a difficult area and involves almost moving into the realm of micromanaging the market and trying to tilt construction activity in one direction more so than in another. That is difficult to effect. Residential prices are so high and we are having difficulty in meeting demand. That goes back to issues on the supply side of the market, the high cost of providing property and what can be done to address that. There may also be a connection with the changing nature of finance, as far as property development is concerned. I refer to the knock-on implications that has had for the market.

Returning to the Deputy's basic question, I share the view that we need significant emphasis on the provision of social and affordable housing in whatever way that can be achieved. Regarding the weighting we might give that in respect of the need for a commercial return, which is evident given the structure and nature of the vehicle proposed, we favour a greater weighting being given to the social and affordable side of that equation.