Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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I thank the witnesses for the useful presentations. There are many good suggestions in terms of amendments that some of us are considering for the legislation.

They probably know, if they paid attention to the previous hearings, or they will get a clear sense from the discussion today, that we are in a bit of a dilemma in this committee. We all want the Land Development Agency and we all want it do many of the things they outlined, but we will get one crack at this legislation. We have many concerns, although we do not have the full detail of the proposed Bill, with the direction the proposed Bill is going in. The witnesses should not take any of my questions or comments as opposition to the principle of what we are dealing with here but more the substance in front of us. My questions are for all four organisations.

Obviously, a big bit of this is not only the management of land but, as was stated in one of the presentations, the land cost component, and the issue of land value capture and land value extraction. It is one of the thorniest issues that we must try and deal with. I would like their thoughts on how the LDA can best deal with land costs, in terms of trying to depress or moderate them but also ensure that the public gets the best outcome in terms of the value extraction from it.

There are some general comments there but we are very keen to hear more about whether the Land Development Agency, LDA, is in the business of acquiring and developing out land, and in practical terms how it can best deal with those issues of moderating land prices and ensuring the public captures the value.

One of the big concerns some of us have is that while the LDA is currently constituted as a non-commercial semi-State body, this legislation would turn it into an independent commercial designated activities company, DAC. This provides the potential for a very clear conflict of interest between its requirement to get a commercial return and the social and environmental objectives that have been outlined by pretty much everyone here. Do the witnesses have a view on whether or not an independent commercial DAC is the right vehicle for that?

Climate change was referred to in a number of the presentations. Clearly, if we are to meet those climate change challenges if there is a question over commercial return versus long-term climate responsibilities where would the balance lie and what is the best way to try to tackle that?

All the representatives' organisations have spoken to us before, and some of them have done very important research, including that done by the Society of Chartered Surveyors Ireland, around affordability, viability and development costs. The committee had very interesting conversations yesterday around the affordable housing component of what the LDA does, and whether its delivery model is a cost model or a discount from market value model. Do the witnesses have views and thoughts on that? For example, what we are seeing at O'Devaney Gardens, because they are applying the market value at a discount, is still working out very expensive for the taxpayer and the purchaser. Where does the balance of that lie?

I have three further questions. With regard to compulsory purchase order powers we are hearing from the Department that it may bring CPO powers into the Bill at a later stage, but that it would be for ransom strips of land that are small pieces of land needed to resolve access issues, rather than for fuller powers. What are the witnesses views on that? Can the LDA do its cost component work if it does not have broader CPO powers?

Although the 10% social and 30% affordable ratio is a minimum, clearly if the LDA is to remain off balance sheet it would become the norm. Given the enormous housing crisis, and especially in affordable housing, do the representatives have a view on whether that should be a higher portion? The proposed legislation does not even mention the delivery of social housing and affordable housing, which are not mentioned explicitly in the aims and objectives under headings 8 or 9.

In Dublin city especially we are noticing that public housing projects tender prices are coming in at very high levels. They are way above the increases in costs of construction. We are aware of where construction cost inflation is going. We are seeing astronomical prices coming in for projects where there is no land costs and all sorts of other development costs that are not factored in. How do we, in the context of the LDA, ensure that it does not become victim to a very small number of competitors in the marketplace? Is it about breaking the lots up? Is it about reforming the procurement and tendering process? Even if we get the LDA right, if a tender goes out then ultimately prices will be set by the market. There are only four or five big players who can do big development projects. Many of the smaller and medium sized members of the Construction Industry Federation would be squeezed out. How do we get them in to maximise the competition and bring down the price?

I apologise but I must leave for another engagement at 10.30 a.m but I will follow everything up in the transcript if I do not get back.