Sean Barrett (Independent) | Oireachtas source

I welcome our guests and wish them good luck in restoring commercial viability to at least one part of the Irish banking system. I will ask again for the breakdown of the 3,103 customers and the 3,164 customers with regard to defaults. There are four people from Bank of Ireland before the committee, with four in the Gallery, and it is not acceptable that we have been asking for three hours for those numbers to be broken down. It reminds me of a Which? survey in the UK that found Bank of Ireland to have one of the lowest levels of customer service. I would hate to be waiting at a counter for the kind of responses we are seeking. The numbers should be supplied.

What does the bank think are correct loan-to-value ratios and loan-to-earnings ratios? The committee is trying to restore solvency in Irish banking and the prudent ratios were exceeded in the past. That is why we are here. In pages 11 and 12 of the documentation provided, there are details of an extra €300 million in defaulted owner-occupancy loans, with the rate of default increasing during this year. Some €100 million was added in the second half of last year and €200 million was added in the first half of this year. There is also €300 million defaulted in buy-to-lets.

Mr. Boucher mentioned that people with multiple buy-to-let properties are his big problem. That is also true in the Houses, as many Deputies and Senators have found that the receivers of these properties tend to evict tenants. Yesterday, we asked AIB for an assurance that such practices would not happen. We will have to get used to much rented accommodation because of a collapse in the mortgage market, and for people, rented properties will be principal private residences. They may be paying rent to a bankrupt landlord. Threshold and the likes of Senator Aideen Hayden have drawn attention to that serious problem, so I would like a clear statement from the bank on the policy in that regard. The Family Home Protection Act should be extended to people who pay rent and live in buy-to-let properties. The landlord should be pursued but the conduct of the receivers should be considered by banks. There has been some concern in rural areas that fairly nasty characters have turned up on behalf of banks to engage in repossessions.

The Minister, Deputy Rabbitte, recently told the Seanad that banks had intervened to try to reduce the rate of interest paid by the post office on savings. Is Bank of Ireland part of that? It would be regrettable if that happened. The Minister indicated he opposed the measure at Cabinet but the request came from the banks. Did this bank play a role?

With regard to the Mercer report, figures in the presentation indicate that staff costs are down by 9.5%, with other figures indicating that staff numbers went down by 10.6%. Those who remained must have seen a pay increase. It seems there has been a decision not to implement the findings of the Mercer report.