Michael Noonan (Limerick City, Fine Gael)
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The figure for arrears is the number of outstanding arrears, taking all files into account. The other side of that coin is that arrangements have been made in respect of 120,000 mortgages. It is well beyond the tipping point or the average now. Up to 89% of the arrangements being made are sticking. The definition of "sticking" is that they are still in place and the borrowers are compliant with the new arrangement 12 months after the event. If one was to take a pen picture of the number of mortgages in resolved arrangements today, it would be more than the 120,000 figure because it does not go into the statistics until the arrangement sticks for 12 months.

There are several commitments in the programme for Government in respect of this matter. There are issues around consultancy legislation and the courts. The Department of Justice and Equality has commenced work on delivering that particular commitment. Then there are services to people in arrears, which is within the remit of the Department of Social Protection, which is advancing work as well. Some work has been done and it is moving forward in line with the commitments in the programme for Government.

As for the consequences of Brexit on foreign direct investment, the best way to examine that is to look at what has happened in the markets. As we all know, the markets move in response to people who have the task of managing billions in finance all over the world. One will see that the movements have been adverse to the UK, both with the exchange rate and stock exchange values. The international expectation is that the UK will be a less strong economy than it was before Brexit. That is from simply looking at market trends and where people are deciding to put their money. That would mean it would be a less attractive location for foreign direct investment.

If one considers the current set of policies in the UK and Ireland, there is an advantage towards Ireland. How one would quantify it is not possible yet. An incoming UK Government may, after the country exits the European Union, change the suite of policies, particularly the tax offering. If it does so, there are new relativities then. For example, the UK may no longer have to be compliant with certain EU regulations around issues such as climate change, although it would still be bound by parallel international agreements. It is not possible to give an accurate forecast until we see how it develops.

By way of information, the UK Chancellor, George Osborne, two budgets back outlined a policy of reducing corporation tax in the UK over several years, with a destination of 18% by 2020. That is not too far above our 12.5% rate in terms of the attractiveness of London as against the attractiveness of Limerick. The UK was already moving into a place to be competitive in any event. It was also one of the first European countries which moved to having a patent box with a tax rate of 10% for the development of intellectual property, which is below our 12.5% rate. We tried to match that with our own patent box, for which the top-line tax rate is 6.25%. We are under the UK on that.

Foreign direct investment is a competitive business. While the relative strength of the economy and the opportunities it affords to a foreign direct investor is one factor, the other is the suite of measures on offer. It was in the process of change anyway before Brexit. Obviously, if an incoming UK Government sees a significant movement of foreign direct investment out of its jurisdiction or if its pipeline for foreign direct investment dries up, in the normal political process, it will probably adjust policy to forestall that.

Again, we have to keep watching and assessing it and using the best information possible to protect our interests.