Mr. Bernard Byrne:

In overall terms, the position the Deputy referred to of what AIB has offered in terms of front and back book pricing is our core principle that we believe it appropriate and fair to do that. The point was recently made by somebody other than AIB that AIB has committed a significant amount of money to cause that to be implemented across the system. A figure in the region of €190 million was referenced. It is a very good example of the issue between front and back book pricing and its implications because to apply a rate reduction across front and back book is an expensive proposition but we believe it is the right thing to do and consistent with our proposition to customers that they do not need to look out for a better rate in the market because the rate we offer customers in terms of attracting new business is the same as the rate for the back book. That is our core proposition.

However, we do not control the market and it currently operates with a series of alternatives, one of which is cashback. That is very attractive to a certain group of customers who exhibit buying behaviour.

We have a choice, either to ignore this buying behaviour or accept the fact it is a feature of the marketplace. It is an expensive feature of the marketplace for a period of time, so we have a dual brand strategy. We have the AIB brand, which has a very clear proposition, and the EBS brand which has implemented three standard variable rate reductions to date. It has not announced anything in the current change, but more changes may be coming in respect of the EBS proposition in the near future. The brand has a cashback offer. We operate it in the context of the market that exists in which we must operate and compete.