Mr. Mark Cunningham:

On my own behalf and that of Mr. Sean Farrell, our chief agricultural adviser, I thank the Chairman and committee members for affording us the opportunity to engage with them. In Bank of Ireland we are acutely conscious of the opportunity for the economy in the dairy and agri-markets, but we are equally conscious of the role we play in supporting that economy. We are keen to ensure that, as a bank, we are adequately resourced to fulfil our mandate and help that economy to expand. To that end, we have completed extensive research on our own behalf and in conjunction with Teagasc to try to understand the needs and demands of the market, particularly in the dairy sector as we look towards the abolition of milk quotas. We are acutely aware of the risks and challenges this new free market poses and have looked to ensure we have the products and capability that will safeguard and protect farmers and their investment as they move into this uncertain environment. My colleague, Mr. Farrell, will talk at some length about that issue.

Bank of Ireland is the number one business bank, with more than a 50% share of non-property lending in the agri-market, while agriculture is the largest stand-alone sector for the bank in its business banking portfolio. Agriculture accounts for over 10% of the exposure in the business banking market. Last year alone, over 23% of our new lending in business banking was to the agriculture sector, which gives some indication of the important role the sector plays in the bank's portfolio and the necessity for us to ensure we have the appropriate products and safeguards for our customers. I now ask Mr. Farrell to take the committee through some of the issues involved in that regard.