Mr. Barry O'Leary:

On the number of applications from local authorities, I do not have those figures with me but I can forward them to the committee. Anyone who applied from the local authority world got money. The agency has never refused a loan to a local authority.

In regard to lending to approved housing bodies, AHBs, approved housing bodies face many hurdles in terms of qualifying for funding from the agency. However, when they qualify we have a 100% record of application approval. We have never refused an application but we frequently do not qualify applicants because we might have concerns about their existing track records, corporate governance or future plans but we would work with them to improve in that regard. Once an applicant qualifies and has in place the famous payment and availability agreement that is fine. We have a 100% record in that regard.

In regard to our interaction to date with AHBs, our proposal is part of a strategy that is being produced for our own organisation. Naturally enough, we have had interaction with all our stakeholders, including the Departments of Finance and Public Expenditure and Reform and the Department responsible for housing. Within the past fortnight, we spoke to the CCMA's housing committee and last Thursday we spoke to the heads of finance of local authorities. They are interested but this is not a panacea. I am delighted to hear that what we are proposing has brought a bit of sunshine to the debate but we are not suggesting it is the solution to all ills. It is a reasonably well-thought out proposal that requires somebody else to move it on a step in terms of a political decision to go this route. This is not a proposal that will solve the problem on its own.

There are still barriers for local authorities, some of which I alluded to in my opening statement. There are issues around planning, procurement and land that need to be looked at. It is not the case that the Housing Finance Agency can simply turn up with the money and everything will be solved. The finance part of the equation is the only part we are representing we know something about. I am aware that there is work going on around what can be done in the planning area, what needs to be done on procurement and what needs to be done on land. Local authorities are interested in doing this. While, as stated, they are not builders, they are in a position to tender to procure builders. What is required at this stage is a signal to them that if they were to do this they will be supported financially. The local authorities must be certain that if they commission this work there will be a guaranteed stream of funding in place from central government to allow them repay these loans because at the end of the day we will want our money back.