Mr. Jim Brown:

The magnitude of the issue is reflective of the problem that exists with mortgage arrears generally. The size of the mortgage arrears problem is considerable. A number of issues arose around the process in terms of banks getting up to speed in handling the issue. We are now on top of that. Other issues that arose around the code of conduct on mortgage arrears, CCMA, and the Dunne ruling, which impacted the process, have also been addressed. Through all of that there was a significant increase in arrears. From our perspective we expect that the arrears will decline over time. As mentioned, there is a significant group of customers who have not made any repayments at all for up to two years or longer and refuse to engage with us. The only route available to us in this regard is the court process. As mentioned, it is not our intention to repossess. We would rather have the customer in financial distress engage with us so that we can put in place a solution, as we have done for other customers previously in arrears but now up to date.