Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

Okay. The last topic I want to touch on is one Mr. Boucher may find easier to deal with. Question No. 34 in the document asked about the various issues that go into the costs in determining interest rates and the list included funding costs, operating costs of the bank and credit risk costs.

This is the bit I found interesting because we had Ulster Bank in earlier. Its representatives talked about the historical performance of the mortgage loan book in Ireland as having to be taken into account in determining the interest to be charged on new couples. I accept that Mr. Boucher may not have the answer for me today. If not, he might send us a note. What additional costs are there in Ireland which the bank must take into account in charging interest rates on mortgages that do not apply in other jurisdictions? In thinking about that matter, I note the historical cost of previous performance. We were told an hour ago by another bank that must be taken into account. There are also the capital and liquidity costs. I also see in the document mention of regulatory costs. Is it possible to give a note on the bank's cost structure in arriving at the standard variable mortgage rate? To what extent do the extra regulatory costs in Ireland add to the rate versus other countries? I ask Mr. Boucher to set out the additional costs. The bank still has eligible liability guarantees of approximately €1 billion, although I know it paid some off since year-end, as stated in the document. The preference dividend payments are factored into the cost as is the bank levy. Can Bank of Ireland give us a note of the costs it must take into account, including those imposed on it by the Central Bank and regulatory bodies in Ireland that may not be of a similar scale in other countries? Looking at the document, it appears the bank has to take all of these into account, which adds to the costs. It is very easy to blame the bank for the high variable rate but if that is due to the high costs being imposed as a result of bank levies, regulatory costs and the historical performance rules of the Central Bank, it would be nice to know. How much of the extra cost is being imposed by the State with the bank just happening to pass it on to the customer?