Mr. Tom Parlon:

It is complicated in that I do not fully understand it myself. First of all, I do not understand the figure that was used for the national children's hospital because we still do not know the exact specification that is there. Clearly, plans change and extra stuff is added. When the economy and construction were growing previously, I think there was inflation of up to 40% between 2002 and 2007. It then dipped by 40%. An awful lot of jobs were quoted for and tendered for at below cost. It was unsustainable and caused six of our top ten companies to go bust because they were trying to buy turnover, hang in there and keep their people employed. The recovery did not happen quickly enough for them. We have gone through a horrendous dip and with the increased activity, which is normal, things are picking up again. There are some constraints on that. Finance is still very scarce. Previously, money was being thrown at projects and at the speculative development of housing.

Now, however, there is no speculative housing development and a developer will not get lending, either from a bank or a mezzanine fund, without a guaranteed pipeline of approved mortgages. The situation is a lot more conservative but, as work increases, we expect to see some higher inflation and higher interest rates.