Mr. Brendan O'Connor:

In terms of the value of what we expect to repossess, I will round up that question and answer another one the Senator asked. He asked if we would mind having an independent review in terms of someone's rate. We have a pre-arrears protocol. If someone has difficulty with their mortgage today, whether that is from a rate or whatever caused it, under the Central Bank protocols, we have a pre-arrears unit, they can identify their difficulty and we will run the affordability.

In terms of an independent assessment, the only independent assessment of affordability would be done through the Insolvency Service of Ireland, ISI. I suppose that is the only one that could look at someone's case and apply reasonable expenses guidelines to it. We do that. We also add between 20% and 25% on top of that. An independent assessment of affordability could be done. The one that exists today by proxy is the ISI, but we have a level of reasonable living expenses in excess of that. Would I personally mind if there was an independent check of affordability? No. I have seen it suggested, and I do not think it is a bad idea at all.

Regarding voluntary assisted sales, where someone has no affordability post the sale of the property, we do not go after people for the residual debt. There is not much point. However, we do look at residual debt on the basis of affordability, so to the extent that someone can afford to make some payment to the residual, within those reasonable living expense guidelines etc., we will seek it, and typically a payment for a period that is less than the insolvency period.

The last question was whether I could give the Senator an estimate of the value of the arrears in terms of properties we will repossess. I am afraid I cannot because at this stage I cannot tell him the number of properties I believe will ultimately end up in repossession. It will be significantly less than what was reported in the newspapers this morning, if we consider the levels of engagement that take place. The bank has said that where someone cannot afford their mortgage we will not go after them for the residual debt if they sell the property. In effect, that is the outcome we get if a house goes to possession. It makes more sense for the individual, the borrower and the bank to do that consensually and achieve that outcome rather than go through a possession process. However, I would like to find out how many are in this queue that we can restructure, and that is why we try to get the re-engagement.