Economic crisis - Histrionics will not help us recover

The Money Advice and Budgeting Service (MABS) has experienced a surge in the number of people seeking assistance. Inquiries have increased by two-thirds in just two years.

Some 35% of the people seeking advice are in financial trouble over mortgage repayments. The Financial Regulator has stated that some 30,000 people are currently three months behind in their payments.

Many who bought their homes in the midst of the property bubble now they find themselves in trouble. They are in negative equity and having difficulty keeping up with their payments, yet they are expected to help contribute towards the rescue of the banks, which are talking about an inevitable rise in interest rates.

Up to €75 billion is to be spent on bailing out the bankers, but there seems to be nothing to bail out the ordinary man or woman who has got into difficulties. Yet they are expected to help fund the rescue of the bankers and speculators.

This is not to say that debts should be written off, but they could be modified and extended over a longer period.

Just €1bn would do wonders in helping to alleviate the difficulties of those people in mortgage arrears. But instead it seems that they are going to be called on to pay even more when the interest rates go up.

If the Government showed some social concern in addressing this problem, the level of public anger could be alleviated. Instead we have been witnessing a certain disconnect with reality. Our political leaders do not seem to be aware of the level of public irritation and disillusionment.

There is the horrific story today of the Department of Social and Family Affairs demanding a carer repay €86,700 because she worked more than the stipulated 15 hours a week while receiving the carer’s allowance for looking after her ill husband. This was apparently “a genuine case” in which the woman was unaware that she was breaking the rules.

Credit card debts are also causing problems. Some people were essentially lured into debts beyond their means with the reckless offer of easy credit afforded to them through the use of credit cards. Now MABS warns that some of these people are being pressurised with tactics that amount to harassment.

We are in the midst of the most serious financial crisis in the country’s history. It is a time for cool heads, not some of the histrionics we have been witnessing in the past couple of days. Suggesting that people should be shot or that political opponents are guilty of economic treason does not help the situation.

Ultimately the rescue package is supposed to help everyone by ensuring that we have a healthy economy.

While those responsible for the current mess should be held accountable, the debate should focussed on ensuring social responsibility and learning the lessons so that it never happens again.