Mr. Brendan McDonagh:

-----there is an obligation on the local authorities to provide housing. Before NAMA existed, no houses were being made available in these numbers to the local authorities. There has been a change in the model. Previously, the local authorities were provided with a capital grant which was used to buy housing. Now the model involves long-term leasing and NAMA is trying to help the process. As soon as a local authority wants social housing, NAMA will buy the property and put it on our balance sheet and lease it out. This facilitates the delivery mechanism very efficiently. We are realistic in that the Government no longer has the money to give the capital grant. NAMA is trying to assist by leasing properties on a long-term basis with an option to buy two thirds of the way through the lease.