Mr. John Trethowan:

The next question relates to improved sanctioning levels. I can answer the question but I cannot be specific with numbers because they are commercially sensitive, not just for each bank on the market but between each bank because they are competing with each other as well. The sanctioned amounts have come back slightly this year because of the level of restructuring which went on last year was included in those. The amounts have decreased this year but the key thing is the amount of new money which the banks are making within those sanctioned figures has increased. Last year it was slightly less than 40% and now it is in the mid-40s as a composite number so the new money that has gone out there, which is very positive, is increasing as well, as are the number of sales or loans both banks are making.

In terms of the challenge to lending, I will reiterate that the key challenge for SMEs and firms is a lack of capital. We are seeing balance sheets with negative capital on them far too often. It is a case now of trying to get those to make some profit, keep it in the business and to restructure the capital accounts of those businesses. The other thing we see a lot of is directors' loans. Balance sheets may have a challenge on them, including huge directors' loans. These are salaries that the owners of the business did not take out for a number of years.

We always have to ask the business owner to subordinate that to the bank lending because if they take that out of the business, the balance sheet falls over. That is another condition which has to be met. The bank needs to come first, if it lent the money.

Ulster Bank and Permanent TSB joined the process voluntarily during the summer. I do not believe we have yet had any cases from Ulster Bank. It does have a reference to the office on its decline letters.