Mr. John Coleman:

I thank the Deputy for the questions. I will do my best to touch on some of the points on which Mr. Cussen prompted me. I hope we are dealing comprehensively with the Deputy's queries. In respect of the use of funds and what we are going to be using the money for, that is a very important question. It is very important that the Land Development Agency will be capitalised. Ultimately we are trying to make an impact on the land market and to make land available for supply. From time to time that will involve certain actions which are capital intensive which could include, as the Deputy pointed out, compulsory purchase orders, which we may need to use as a last resort. Overall we are looking to prioritise deployment of capital in our business plan. We want maximum bang for buck in making land open and available for delivery. That does not just involve buying land or anything like that, but improving it, servicing it and getting the right planning policy in place on that land. That is ultimately where we are trying to get to.

We may need to spend money on compulsory purchase orders as I mentioned. We may, in a countercyclical way, buy some land in order to build up some land that could be made open and available. My view is that in many locations land is very highly valued currently. It would not be a particularly good use of State funds to get into the land market in a big way right now. We do not want to throw fuel on the fire of an already hot land market. My view is that high land prices are really at the core of our problem currently. If the Deputy looks at it and if we are agreed that restrictions or delays in bringing forward land cause a lack of it to be available, that causes high land values which feed into high housing costs and rents. Our role is to take the pressure out of that system. That is where we are looking to get maximum bang for our buck in terms of the funding that is being given.

How do we do that? How do we bring forward land? It could be by acquisition, as I mentioned, or by compulsory purchase order. It could be by providing infrastructure, the lack of which can cause blockages for years, as the Deputy will know, in respect of some sites and even in respect of special development zones. That must be done in a way in which the investment can be recouped and in which value is achieved for the State in terms of the money it spends in that respect.

If land that is currently unzoned is available at reasonable prices, in time it may be zoned in a very strategic way for the purposes of future infrastructure provision. I refer to projects like MetroLink. We will look at things like that. We are looking for maximum impact. We are going to be very judicious in the deployment of this option.

Our approach to the extraction of value from our dealings with private sector developers and contracting firms has always been to go up the development curve. Developers do not just build houses on land. During the development process, the creation of value and profit starts with a site that has no planning and no zoning. That site is assembled and brought through the zoning, planning and servicing processes. That is where the money is made in development. That is what the LDA is going to try to do, for two reasons. First, the agency will try to extract value for the State from the money that is spent on land. Second, it will make sure each development is brought forward and delivered in a structured way so that it is not stymied by things like infrastructure and servicing.

We will deal with developers in a commercial way. We will look to bring in covenants to make sure the land is delivered. We might have time-bound delivery commitments and licensing requirements that will allow us to intervene if a site is not being delivered for a particular reason. It is important that the State, through the LDA, can always control the tempo of delivery on each site. We do not want to lose control of what is delivered on a site. We will try to extract the best deal possible. One of the ways to do that might be to stay in for some of the upside along the way. It is hoped not only that this will be financially beneficial for the State, but also that it will help to ensure delivery.

The Deputy asked whether local authorities could be given the powers or abilities that are being given to the LDA. If one examines what we intend to deal with, one will see that we will be looking at it with other State bodies in addition to local authorities. Our initial portfolio mostly involves non-local authority land. We see big opportunities across the State sector and into the private sector as well. I think we will go further than local authority-owned land. We may involve private land as well. Given that land availability is at the core of the problem we have currently, it is important that there is an agency with a sole focus on making land available. All we do is make sure there is a supply of land. It is important that this is our dedicated focus.

It is important to note that in our interactions with local authorities, we are not seeking to add complexity or get in the way of what they are doing. A great deal of good work is being done by local authorities. We are not seeking to upset that. We are looking to get involved where we can provide additionality. The Dyke Road site in Galway is a good example of that. We have asked the local authority in Galway whether there is anything we can do to assist and whether we can bring any additionality. In that case, the council had a shortage of resources on the executive basis to bring a site like that through the planning process to delivery. We have been asked to step in on a service provision basis in that case. All we are doing is providing additionality. We are not seeking to get in the way. I hope I have touched on some of the Deputy's points. I am happy to develop them further if he wishes.