Mr. Robert Nicholson:

We looked at the Vienna model. We had its regulations translated to inform us and we also spoke to the relevant people. The Vienna model has a couple of different delivery streams. Broadly speaking, it allows for a return of approximately 3.5%, in the same way as we are catering for some form of percentage of a return. To a decent degree, we are mirroring what Vienna intends to do, but are open to reviewing the regulations as we go in terms of the work we are doing with the EIB.

On the question regarding what happens to units in the longer term, as things stand we have a few different delivery methods or potential delivery methods. We can deliver through the LDA, through local authorities via the serviced site fund and through approved housing bodies with CREL. Each of those would have characteristics of its own. However, we are intending that these would be long-term units. For example, on Enniskerry Road there is a long-term covenant. I cannot recall the exact details, but I think it is 150 years. The scheme at, say, Shanganagh would go to the LDA for 150 years. In short, developments that are supported either by CREL or other Government funds will stay in the system for a long time. Typically, as those systems mature all sorts of scenarios such as cost subsidisation and more competitive rents develop and this allows the bodies involved to generate more equity or loans for them to develop more housing based on the returns they get from the units. They would be getting a level of rent over and above what it is costing to manage particular units. That is a long-term transition. It is 30 to 50 years hence, but we are factoring in that those units that are supported stay in cost rental for a significant period of time and, in many cases, in perpetuity.