The government must introduce debt forgiveness for the average Joe

Godfrey’s Gospel
ISN’T it amazing to think that we could find billions upon billions of euro to give the banks a dig out but can’t find the same for private individuals who run the risk of being turfed out onto the side of the road by the same banks who ran this country ragged.

But debt forgiveness would be open to wholesale abuse.

We all accept that some people will simply refuse to pay their way and will use any excuse to avoid parting with money.

But you could say the same about our social welfare payments or the entire benefits system this country currently enjoys.

Yes it is abused – everyone knows that – but only by a minority of individuals. By and large, the social welfare system works relatively well and is a lifesaver for many, many people and their families.

But while some abuse the system, others are abused by it.

I had a conversation with a person last week who has not enjoyed much luck in the employment stakes in recent years. A one-time PAYE worker, he opted to become self-employed near the end of the boom. And boy has he paid the price!

He has a company but he is the only employee and, over the past year, he has generated a total income of less than €5,000. At his wits’ end, he went to find out if he was entitled to any state assistance, bearing in mind that he has paid his taxes for more than 30 years. Yes, was the reply. But the amount is a paltry €16.50 a week.

He is a separated father of two but, even though he feels humiliated having to sign on each week to collect such a paltry sum, he says he has no option but to do so. Sometimes that is the only money he gets – and he has to rely on family and friends for a dig out to make ends meet.

Whatever debts that man has are not being serviced. In fact, he told me that if he lives to be 100 and eventually pays all his debts, which are getting greater by the day, he will never be given any forgiveness in relation to his bank loan.

Remember, this is the same banking system which originally led government to believe that a few billion was all that was needed to get them out of the bind they found themselves in.

Years later, we have since discovered that the original estimate wasn’t even close to the mark. Government and individual ministers were given incorrect information by the banks with regard to performing and non-performing loans. And this has led us down a cul-de-sac.

Each and every one of this country’s population have had to make up for those lies. People who are lucky enough to still have a job are paying more tax, while those in receipt of social welfare are getting less and less. Services have been cut back across the board as well, to such an extent that you hear horror stories of how some elderly people are being left for one, two or even three days on a trolley before being admitted to hospital.

Yes, there will be abuse if a debt forgiveness scheme is introduced, but some help will have to be given. Approximately 300,000 people are living in stressful circumstances as a result of debt. If that is the estimate, I can tell you it is probably double that – because pride dictates that people will do whatever they can in order to prevent the next door neighbour, family or friends finding out they are skint. The funny thing is, they are probably broke as well.

Naturally, the first move towards debt forgiveness is to say it cannot happen at all. But public representatives will have to continue to press for a scheme to be introduced. Otherwise, this country will slowly grind to a halt. Other sectors have been given their dig out, now it is time for the individual at the bottom of the pile, who has paid the extra taxes, taken the cuts on the chin and kept their shoulder to the wheel, irrespective of what was thrown at them.

If not, we may as well put this country into mothballs.