Mr. Mark Cunningham:

I thank the Chairman and I will follow on from Mr. Burke's comments on the nature of the scheme. There were detailed discussions with SBCI as to the manner in which the scheme was going to be administered. Effectively, if we look at an unsecured agri rate, the rate is 6.75%. The rate that has been provided under this scheme to farmers on an unsecured basis is 2.95%. Effectively, the difference between the 4.95% rate and the 6.75% rate is a form of risk sharing, the different lower capital levels we will require for the lower level of risk we will be taking on because of the guarantee that Mr. Burke referred to. Detailed calculations were done between Bank of Ireland and SBCI, looking at historic past performance and the average life of the loan book to ascertain what was the appropriate level of discount and the price at which the loans should be offered. It is not a straightforward subsidy. When one takes the figure of 2.95% and adds the 2% margin - effectively, a 2% subsidy is given to the banks such that it will cover our credit losses - and given the lower losses that we anticipate and the administration cost, it will be cost neutral for the banks in terms of operating this scheme. That is the manner in which this scheme was devised. I have no doubt that SBCI can make the detailed calculations available to the committee, should it look for them. That is the manner in which the fund is structured.