Ms Tina Donaghy:

The Part Vs are fixed price because those prices were negotiated some time ago based on that planning gain at that time, so they will be delivered. There is a big reluctance on what the Deputy called the turnkeys, which we would call a new-build development agreement. We have developers who have opportunities who are bringing projects to the market that would not otherwise come to the market, but there is a reluctance to engage until there is some sort of certainty around some evidence-based flexibility on costs as they progress. I suppose it is the fear factor Ms Hegarty mentioned, the uncertainty and pricing in the risk. They cannot do that from the outset because that would just scare the horses, the local authorities will not engage and the projects will not be viable. There is this circle of one problem after the other. We are in what anyone could describe as a perfect storm with regard to costs. We will have it with projects under our control as well. I am about to go to tender on a Part 8 development in which we have been in very lengthy negotiations to achieve, and what I hear is there is a bit of interest in tendering. However, on the flexibility around fixed price, the Government contracts committee for construction, GCCC, contract only allows for fixed price. There is no flexibility. All that risk and all that uncertainty is built in from the outset.