Two in three worse off than last year

ALMOST two out of three people (62%) say they are worse off now than this time last year.

Pay adjustments are also a stark reality for many with just over one in four saying somebody in their household has had their working hours cut while more than a half have had a pay cut recently. More than a third said somebody in their household has had a pay freeze recently.

Two thirds of those surveyed believe they will be worse off this time next year, a historic high. The figure is higher among females with 70% saying they will be worse off compared with 66% of males.

Almost a quarter (24%) of those aged between 18 and 24 believe they will be better off in a year’s time compared with 3% of those aged over 65.

Half of people surveyed believe the recession will last more than five years with just 5% of people thinking the downturn will be over in the next two years.

Just over one in five (22%) people believed that things in Ireland are generally going in the right direction. This is a large increase from the 10% in January 2009 but is well below the 46% that thought so in 1995.

Managing director of financial advice firm, CredyCare.ie, Frank Conway said: “Citizens will undoubtedly feel worse off. The confusion over the last 12 months alone, and particularly over the last six weeks has created a climate of uncertainty for a lot of people. The arrival of the IMF served to copper-fasten peoples fears that the situation was grim.

“Not alone are people concerned about their jobs and their ability to earn money, some are also in fear of the money they have actually earned.”

Meanwhile almost two thirds of people surveyed think Ireland is a good place to live. However young people are more dissatisfied with the country than those in retirement age with 42% of 18 to 24-year-olds thinking Ireland is not a good place to live compared with 26% of those aged over 65.

Almost half of the females surveyed said they are the chief income earners in their household and one in five people surveyed described themselves as a housewife.

Entrepreneurship is more prevalent among males with 17% saying they are self-employed compared with 7% of females.

More males are unemployed than females at 16% compared with 8% of women. In the survey 7% of people described themselves as students while 15% said they are retired.

Figures for the 12 months to April 2010 show about 65,300 people leaving Ireland over the last year — about half of whom were Irish citizens — the highest rate since 1989.

Immigration dropped from 57,300 between April 2008 and April 2009, to 30,800 over the following 12 months.

Experts said that, unlike periods of mass emigration in the 1950s and 1980s, those leaving Ireland now are slightly older, vastly better qualified and bound for jobs in IT, law and the financial sector — not on construction sites.

In the past, teenagers with few skills “were going to join the bottom of someone else’s labour hierarchy,” said Eunan O’Halpin, a professor of contemporary Irish history at Dublin’s Trinity College.

‘20% had to adapt mortgages’

THE struggle to pay off loans and mortgages became too much for more than one in five people over the last 12 months and they were forced to go to their bank to renegotiate.

The figure is highest among those aged between 35 and 49 with 29% saying they have taken such action in the last year. In the 18 to 24-year-old category, 15% said they have contacted their bank to work out a new plan.

Trust in the banks is low with more than two-in-five people surveyed saying they do not believe their money is safe in Irish banks.

A quarter (26%) of those surveyed said they “strongly disagree” with the statement their money is secure in Irish banks. This rises to 30% in Munster. 17% “strongly believe” their money is safe.

Men are far more trusting of the banks than women with 36% of males strongly agreeing their money is safe compared with 26% of females.

Trust is lowest among those aged between 25 and 34 with almost half thinking their money is not safe in Irish banks.

Munster bank customers are also the least convinced with half saying they think their money is unsafe sitting in the bank, compared with 39% in Dublin.

The Government has gone to great lengths over the last few months to reassure Irish people their deposits are safe.

Under the Deposit Guarantee Scheme (DGS), deposits of up to €100,000 are guaranteed. The DGS covers AIB, Bank of Ireland, ICS Building Society, EBS Building Society, Anglo Irish, Irish Nationwide Building Society and Irish Life and Permanent. It also covers credit unions and Ulster Bank. This guarantee has no expiry date.

Most deposits are also covered by another guarantee called the Eligible Liabilities Guarantee Scheme which is being constantly extended by the Government. This guarantees deposits of more than €100,000.

Meanwhile, on the question about contacting the bank about loans and mortgages much more professionals were forced to do so than in the working class, unemployed category.

There are over 40,000 residential mortgages 90 days or more in arrears.

Chief executive of the Irish Brokers Association Ciaran Phelan said: “While the findings reinforce the sad fact that people are struggling with mortgage repayments one positive that can be taken from the results is people are communicating with their lenders more than ever. In the past there may have been a tendency not to discuss their money problems with their bank and simply hope that they go away. Communication is absolutely vital for those struggling with payments.”

While there is a lingering distrust of the banks, despite the bailout aided by the European Union, there is strong desire not to meet demands from Brussels-based politicians to raise corporation tax.

Most people think Ireland should keep its controversial 12.5% rate.

Two thirds agree it should remain in place with more males (70%) than females (66%) thinking it is important it stays.

Professionals are the group that care most that the rate remains, with 78% saying it should not be changed under any circumstances. It is also more of an issue for those aged between 35 and 49 with 71% believing the rate must stay in place no matter what. This compares with 60% of those aged between 18 and 24.

Taoiseach Brian Cowen said recently that the EU/International Monetary Fund (IMF) support programme will not involve any change to Ireland’s corporate tax rate.

However, members of the European Parliament have begun an angry protest campaign against the retention of the 12.5% rate.