Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Clearly, potential investors will try to get the maximum stake in the bank for as little money as possible. That is the nature of what they do. I do not expect Mr. Masding to respond, but I express my concern about seeing the State's shareholding in Permanent TSB diluted significantly as a result of the investment the bank is seeking. I would not like this. The State has invested €2.2 billion in net terms and the final shape of the capital plan for the bank must protect the integrity of the State's investment in Permanent TSB. That is a matter between Mr. Masding and the shareholder, but I express my opinion on it.

I move to the issue of interest rates and, in particular, the standard variable interest rates the bank is charging. Notwithstanding the reduction of a couple of years ago, the bank is still at the high end for an LTV of between 80% and 90% for new mortgages and a gross rate of 4.59%. The bank has 79,000 standard variable rate customers in different LTV brackets. What is Mr. Masding's reaction to the decision of AIB to reduce its rate? AIB's comparable rate for an LTV of over 80% is, 4.25% which is significantly lower than Permanent TSB's rate. Is the bank reviewing its rates in the light of this? Where does the bank stand?