Paul Coghlan (Fine Gael) | Oireachtas source

I will take seven minutes or less than that. I have four quick questions.

I welcome Mr. Brown and his colleagues. I am concerned that the Central Bank's targets will prove counter-productive. They will have the effect of increasing arrears and forcing the banks to go legal. Based on what has been said by the Bank of Ireland, AIB and in the presentation of Ulster Bank, the measures taken by the Central Bank to deal with the issue of mortgage arrears will lead to an increase in the level of mortgage arrears and increased foreclosures on home loans by the end of the year. The increase in the level of arrears seen last month will increase because the Central Bank's targets-based approach is forcing banks to move towards legal solutions or else face major capital sanctions. Mr. Brown might confirm this.

Given that regulatory failure has contributed in the first place to our problems, we must be sure a tick-box approach by the Central Bank is not exacerbating the problem and forcing more people out of their homes and into arrears. Does Mr. Brown agree with this analysis? Would a less prescriptive approach by the Central Bank that recognises the difference between individual customers lead to better outcomes for them?

The second question is whether the bank is writing off bank debts, specifically where a property is sold and the proceeds of the sale are inadequate to cover the shortfall on a loan. Is the bank going after the poor, unfortunate debtor for the balance, given that he or she will have lost his or her home or possibly retirement investment? Could the bank cut some slack for the genuine debtor?

The committee is trying to get to grips with the definition of “strategic defaulter”. What are the characteristics of a strategic defaulter? Will Mr. Brown give some examples of the types of behaviour that characterise such a person? Does such a person exist or is it a myth of the banking sector? My final question is-----