Mr. Ken Burke:

There were a number of specific questions relating to AIB so I will try to deal with those. We have been working with our farming customers and through the seminars for over a year now to get the "better before bigger" message out there. A number of analogies were drawn around other markets such as New Zealand and Northern Ireland. As part of those seminars, we have done case studies of the Republic of Ireland versus Northern Ireland and the investment that took place in Northern Ireland in terms of growth in milk output because it was not constrained by milk quotas to the same extent as the Irish market. We also drew analogies showing that the actual net margins in the Republic of Ireland with the net margins being achieved in Northern Ireland.

My colleague Mr. Tadhg Buckley travelled to New Zealand to observe some of the experience in that market. There were key things to be learnt in terms of the way the market expanded, the level of debt taken on per farmer, the level of interest only and inter-generational borrowings that occurred. We have been putting the message across that it is a case of "better before bigger".

Senator Mooney asked if we were constrained in the number of people who could attend conferences and seminars. It is a consistent part of what we do, we will be in Enniscorthy tomorrow night and Cootehill next week. We were in Limerick last week. We meet the demand for the seminars, where we take those learnings and share them. There is great debate and discussion at the seminars which is not necessarily limited to the bank support; it is more a case of sharing the learnings from the experiences of other jurisdictions and economies.

We were asked if there were suites of products available to match individual needs. We take a tailored approach. To deal with super levy bill or large tax bills, we have a product called prompt pay where the bill is paid up front and paid over a period of time.

We were asked if we were prepared to offer interest-only repayments or to park levels of debt. Some of the new money we are lending is interest only repayment from the outset, acknowledging that 2015 will bring challenges but when we take it through the cycle price we know it is an enterprise that we wish to back.

On unsecured loans for farmers up to €30,000, the typical dairy farmer borrows less than €100,000, it is closer to €75,000 to €78,000. The question of collateral comes down the line, behind the capability and the experience of the promoter, the veracity of the business plan that is put forward, the prospects and the outlook for the sector. The decision on collateral comes after other considerations. We are not prescriptive in terms of taking collateral at a certain given level. Each enterprise is looked at on its own. Do we lend up to €100,000 unsecured? Yes, if the business justifies it, if the farm enterprise and the blend between the level of investment by the promoter and the amount of debt that is being sought justifies it.

We can speak on the experience in Northern Ireland if that helps to flesh out the example.