Mr. Donald Mackay:

It is important to remember that the cost structure in Ireland is higher than the average in the other countries where we operate. There are various input costs in our business and while our cost base is kept to a minimum through the operation of a strict efficiency model, whereby we aim to have the lowest costs possible in any market, the input costs in Ireland are higher. Labour costs are higher, as are property costs and while the latter costs have come down, there is still a legacy issue in that regard. Commercial rents are higher in Ireland and again, while they are falling, there is still a legacy issue at play. Insurance is more expensive here, as are utilities. There are various costs that add to our cost base here that we do not have in other countries of operation.

The Senator asked about our gross margins but what I was speaking about earlier was profit, which is what we earn when the costs are removed from the gross margin. We are consistent with our other business in terms of profit.