Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I wish to move on to the issue of mortgages. In the questionnaire submitted AIB has indicated that even at a 4% standard variable rate for mortgages, variable mortgages are still loss making. In the presentation Mr. Duffy has pointed out that the cost of funding now is 2.79%. I presume he is taking into account ELG costs, bad debt provision, etc. in saying that even at 4%, the bank is still losing money on variable rate mortgages. What would it need to charge in order for them not to lose money?