Mr. David Duffy:

The Deputy has asked a very important question, but I think it is useful to frame it with a few facts. Let us look at the process of engagement, where it might lend itself to a legal outcome. In the first instance, we advise people that they may enter into a legal position and try to outline all the alternatives. In that circumstance I can confirm that 50% of the people contacted on a potential legal path re-engaged with the bank. That is a very positive outcome. It is largely related to the various solutions that we offer, as the Deputy identified, rather than pursuing the legal position. When we are in the position of saying that we will now enter a legal process, we have seen on average a 10% re-engagement pretty quickly. When those 10% of customers engage with the bank they are paying the full capital and interest, subsequent to the advice around the potential legal process. It is worth mentioning also that when one looks at the legal letters in totality, the average duration of arrears or non-engagement for people who have received legal letters is greater than two years. In terms of civil proceedings, the average is greater than three years of arrears. We are satisfied that we have engaged as substantially as we can.

The whole legal and regulatory process is well defined. Significant and frequent engagement takes place by telephone, letter and other means. When that fails and we warn of the potential process, 50% engage. When we enter the process, a further 10% engage, and one is left with a population that has not responded for between two and three years.