Dr. Olive McCarthy:

I thank Deputy Doherty for the question. The question of what the interest rate should be is probably the hardest asked today. If we knew the answer, we would be selling it here today. We are not experts in setting interest rates. Mr. Whelan and Ms Corcoran have done substantial work in comparing it with other rates, looking at multiples of rates and so on. It is tempting to say that anything lower than what is currently charged is surely a step in the right direction, but that would not be enough and it is important to set an ultimate rate. In our submission to the public consultation conducted by the Department of Finance, we suggested an interim rate of approximately 42%. We looked at the credit union sector in the UK, which is now allowed to charge up to 42% to cater for that market, but the situation in the UK is different from here. We are certainly looking at a much lower rate than is currently in place, and 36% or lower would be appropriate. What is currently charged is extremely high. My local credit union offers 4.99%. The rate has to be much closer to that. I am answering but not answering at the same time. It is a difficult question and there are people better positioned than us to work out what those rates should be, with more information, since we are working with imperfect information.