Tom Barry (Cork East, Fine Gael) | Oireachtas source

The representatives from AIB are very welcome. I banked with AIB for many years and I am very familiar with its workings. I will not go back over some of the points that were made. Mr. Duffy might give me some answers in writing if he cannot answer all my questions now.

The Strategic Banking Corporation of Ireland has not been mentioned. What is the typical rate the bank will lend at through this vehicle? What is the percentage cost of this? Many SMEs would benefit from the vehicle. I have been hearing rates of approximately 4.5% plus but I have a feeling that if the rate becomes too high, it will not be practical. We need to ensure the product is as cheap as possible to get the SMEs back working. We can review it in time.

A question raised with me and many others concerns how loyal customers believe the bank is imposing high interest rates on them by comparison with new businesses. They feel aggrieved. That is why a stir is being created. The customers want their loyalty rewarded. There must be some way of dealing with this. Since this is becoming an issue, it needs to be dealt with.

Mr. Duffy said the average interest margin is 1.69%. I do not like margins. One of Mr. Duffy's Munster lenders, whom I will not name, stated one could have one's tail end in the fire and one's head in the fridge but one's average would not be too bad although the extremes would be poor. I am sure Mr. Duffy heard that. My point is that the percentage is masking a lot of items. It is creating a fog that I cannot get around. There is a myriad of factors in the background.

Some people are saying AIB is not engaging with the mortgage holders. I heard about the whole list of forms. The forms and numbers need to be in language that people can understand if there is a pre-arrears case. I acknowledge that the bank does deal with this but the information needs to be communicated better.

I recently witnessed bank representatives in a courtroom seeking orders. A particular bank, not AIB, wanted a committal order to be extended. The judge threw out the case. He was very frustrated because one either seeks a committal or not.

How many repossession cases will AIB deal with this year? How many will proceed to full completion? I would like to see more engagement to keep people in their homes until the bitter end. I acknowledge that I heard Mr. Duffy refer to this many times. I understand that we are dealing with a legacy issue. There is a perception that there is not enough contact being made. Many people are e-mailing me about this.

A bugbear of mine, another legacy issue, is Belfry. I would like to be told that no more Belfry-type funds will ever be issued in any form and that people will not be given cheese and wine and asked to invest because they are valued customers. What occurred was wrong and it will be wrong if it is ever done again. Will AIB do anything for those customers who have had to bear a full 100% loss on their investment?

With regard to the restructuring of businesses, how much is new lending? Mr. Duffy mentioned all the new lending. Many of the restructurings involve new lending, by definition, but they are already in place. There is nothing wrong with it but I wish to know the percentage.

With restructuring, there is a hidden cost. I would like to see the bank bearing some of the burden of the restructuring debt. There are all the costs that go with it and securities being perfected, etc., but the burden is landed on the customer. It should be shared a little more equally. Mr. Duffy will understand where I am coming from on that.

What are Mr. Duffy's views on the new Central Bank rulings regarding equity for mortgages? Why has there been a 27% reduction in Central Bank and bank deposits, as mentioned in AIB's report? There is a view that the banks, but not just AIB, are mopping up equity a little too diligently. How does Mr. Duffy feel about that? The figure for impaired loans, €22 billion, is still huge. How much of this will actually be realised? What will it crystallise out to in the end?

I appreciate that the bank has a mess to tidy up, and that it is doing so. It has done a very good job in many respects. It surely represents a cost on the bank. Do the delegates know the cost at present? The cost will obviously be reducing as the bank becomes a normal functioning bank. Will the reduction be passed on to customers or will it go back to shareholders? There are many issues to be addressed and we could do with a second meeting. I would appreciate a written response if Mr. Duffy cannot answer my questions in detail.