Professor Patrick Honohan:

I can see how the wording of my statement may have informed what the Deputy just said. As I was reading it, I thought it was coming across as a bit more complacent than I would have intended. The Chairman referred to the fact that when I came before the committee just over a year ago, I had referred to tearing my hair out, etc. After the meeting in question we introduced this regime or process and I thought it would not be productive to make empty gestures of frustration, particularly when the process started to generate actual results. The glass is either half-full or half-empty, or an eighth full and seven eighths empty in this regard. Deals are being done, split mortgages - some more effective than others - are on offer and there are numbers in four figures in respect of term extensions and arrears capitalisation. The Central Bank has engaged outsiders and is using its own staff to try to probe the latter to see whether they are really viable. We have rejected some, but viable arrangements are being reached. I accept, however, that they are not all perfect. I am sure the quality of both the engagement and the communication, which is so crucial for the well-being of the borrower, is very mixed and uneven. I am of the view, however, that the process is gaining traction. The more cases that are dealt with, the more people will learn from them and converge on the most effective types of arrangement.

It will be a long haul. After what Deputy McDonald said, I am afraid to use particular words. If I use the word "unpleasant", people will be of the view that I am being condescending or something of that nature. I accept that it is an extremely difficult process for borrowers and it is not being handled well. However, it is being handled, and something is happening. I have no doubt that the Deputy and his colleagues are being approached by constituents - particularly those whose arrangements are not working - who want to relay what has happened to them. I am sure there are numerous cases in which the arrangements reached are not working. We reviewed a small sample and we found some that were not working.