Mr. John Moran:

The situation with regard to Setanta Insurance is actually quite complex. The problem was that Setanta was an insurance company that was regulated in another European country. In other words, it was engaging in "passporting" in order to write insurance in Ireland. The important issue in this regard is that there are a number of limits on the way the insurance compensation fund actually operates and the pay-out it will make. If, for example, it is a 65% pay-out, there is an overall cap of €850,000 in terms of the amount that will ultimately be paid out. That is why, in the management of this exercise, the Central Bank and others have been encouraging people who are policyholders with the company to take out new policies. There are groups in my Department and the Central Bank which are working through the various issues involved. These issues remain complex in the context of whether the funds are available or whether they can cover corporate purchasers of insurance versus individual purchasers. There is also the question of what happens if there are two insurance policies in place. It is important that the first policy is terminated and that the new one then comes into play. I do not believe we have an expectation of what the actual pay-out might be, but the fund will need to cover it because, in effect, it operates a little like the uninsured-----