Mr. John Hannigan:

I am aware of some European countries where it already exists and where there is a limit, particularly for the delivery of social housing, whereby the state sets a rate above which they cannot earn. It requires a greater level of transparency than we currently have in Ireland in terms of the publication of costs etc. It would require an overhaul in how the system works. It mostly relates to public contracts in those jurisdictions but it is successful in limiting the market in terms of its growth and earning potential. In Ireland at present, many developers are saying their margins are being excessively squeezed because they are in fixed price contracts at a time when cost inflation is going through the roof. However, I suggest that a lot of them, if not all, are still making a significant margin that is keeping them in business. We need people to stay in business. Having a guaranteed return allows them to plan for that, and it allows them to gear for that for the future.