First of all, the impact is negative 1.5%, not what you just said. I said 20 basis points, so that's 0.20%. So if the mid-term bond now is at 3.25% interest rate, I'm saying that's going to go to 3.45% interest rate, so that's a difference of 0.20%.
When the interest rate goes up, the value of the bond goes down. So we can, through bond calculators, say that if interest rates go up by 0.20 percentage points, that means the bond value is going down under 2%. So it's in that context that I say that the damages of a full payment of the deficits that are currently in place would have only that nominal impact on the bond market as a whole. That compares to the average deficit today at 20%.
So with a 20% pension deficit, the bankrupt company results in the pensioner taking a 20% haircut. Fixing that problem with either super-priority or preferred status has only a very small impact on the value of current bonds. So we say that's a reasonable balance for this government to take as a matter of social policy.
If I had more time, I'd talk about some good business reasons to do it as well, but that is the answer to your question.