Mr. Lar Bradshaw:

What I am saying is that it looks pretty clear to me that Ms Moylan, who is the number two in the Department, had concluded on this. The committee discussed all of this with Ms Moylan last month and she explained that the key issue for the Department had been to limit the downside exposure, which is clear on the basis of the discussion.

I am trying to make two points to the Deputy. One is that it was pretty clear to me - the Deputy will be able to get proof of this when he discusses it with all the other board members when they come in - that when somebody on the board saw the letter, which we only received after it went, with which I have no problem as my job was not to edit the chief executive's letters on a matter he was sending to another board member, they clearly brought it up and asked if there was any danger here that we were misleading and then we discussed it. Ms Mary Moylan concluded there was no need to go back because the decision we were looking for from the Department was about limiting the downside. The decision we were not looking for from the Department was to tell us what was an appropriate commercial amount. I realise even as I say that, I am sitting opposite the Deputy having to acknowledge that the authority lost money on this, about which I will talk, but it does not change the probity of the board's approach at this moment in time.