asked the Minister for Defence if the proposals he has for funding the proposed new Department of Defence headquarters are within normal financial criteria; if there is any element of risk involved for the State in accepting these types or proposals; and if he will make a statement on the matter.

The position regarding the funding of the project is as indicated by me in reply to supplementary questions from the Deputy on 12 November 1985 — Question No. 50, Volume 361, columns 1737 and 1738. Since then there has been no material change on that aspect of the matter which will not be brought to the point of decision until tenders for the building project have been received and assessed.

Will there be strict criteria to ensure that there will be no cost over-run on this building project? Is there any danger that a final single payment of the total cost could be postponed for a particular period in order to avoid undue pressure on the State's finances?

On the question of cost over-run, obviously the supervision of the contract will be designed to ensure that there will not be any over-run. I do not follow the second point.

Will there be a phased supply of finance or is it the case that the cost will not have to be met by Exchequer funding until the final phase has been completed? Since this finance will be supplied by the financial institutions, could it happen that it might not be paid for a particular period, during which interest rates could rise?

The terms of the financial package, including the rate of interest to be charged on the repayments and on the rolled-up interest during the building period, will be negotiated and agreed in advance, after tenders have been received and before building commences.