Mr. David Duffy:

If he is saying there is not enough competition and that this is causing the rate debate, I am not sure he is entirely correct. We are very supportive of more competition in the market. The debate has become confused because people believe we have exorbitant margins. I have pointed out that the ECB rate is not the reference point; it is 3% of our deposits; therefore, we are making thin margins, while trying to guarantee a shareholder return, even at the point to which we have reduced the current rates. If one starts out with a premise that one is not profiteering, one has a very different funding rate from the rest of Europe. Recovering bad credit with a view to trying to borrow on the market and lend is our reality, for which there is no benchmark in the rest of Europe. Therefore, I am not sure the competition issue will change everything that much. For the long-term health of the economy, there will be a need for more competition. This will come from non-bank providers. Some 80% of SME lending in Ireland is with banks, but some 80% of SME lending in America is with non-banks. Therefore, the dynamic of the model will change. Internet lending providers will enter the market in force and scale and this will result in a different form of competition. It is not always just about another bank in a geographical location. The competition will come over time. Ulster Bank is staying, as has been made public, and one will see Permanent TSB drive recovery with strength; one will also see Internet providers. Banks such as RaboDirect are offering a direct channel. All of this will normalise over a period.