Mr. Padraic Kissane:

The circle is not drawn in full. The banks are taking the view that they should move the distressed loans out to the vulture funds. As night follows day, the next area to be looked at will be warehoused loans because they are now the next non-performing loan and these will get moved out. I am raising the question to create the possibility that answers might come. Nobody is asking what happens to warehoused loans at the end. Will all these 70 year olds have to leave their homes because they have to sell? Some will definitely take the view that they should trade down and move to a smaller house and so forth, but nobody is asking the question.

It is even more serious than that, however. Most of the arrangements that were put in place have three-year reviews attached, which are currently in play with the vulture fund. They were told it would be reviewed in three years with a pillar bank. It is now being reviewed with a vulture fund and that is their opportunity to come in and take the short-term view they have. The Deputy is absolutely right. As a financial adviser, I do not know today what will happen with warehousing. I am being told in the surrounds that it is written off already so why not do it if the provisioning has already taken place that the taxpayer has taken the hit for?

The other aspect that is not considered is the rental market and the contributory effect of the sale to vulture funds. A large number of properties are empty because receivers have been appointed. I have been at meetings with clients and the bank cannot tell me who has the keys. The client knows they gave them back to the bank, but nobody knows who has the keys and the property is empty. It is astonishing.