I am the founder of the Future Group. I am joined by my colleagues, Mr. Denis Lenihan, Ms Sandra Maher and Mr. John O'Riordan. I will make a short presentation outlining our proposal and would then welcome any questions members may have.
The Future Group was founded almost 18 months ago. Since then we have made representations and presentations to various interested parties, including the former Minister for Social and Family Affairs, Deputy Hanafin, the Minister for Finance, Deputy Brian Lenihan, the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe, and their respective officials, as well as the mortgage arrears and personal debt expert group.
We are a group of self-employed independent financial advisers with extensive experience in the areas of banking and finance. We work on the ground on a daily basis with the banks and their customers and are regulated by the Financial Regulator.
The reality is that many people are caught in the purgatory that lies between the Monetary Advice and Budgeting Service, MABS, and NAMA. They are under a tremendous financial strain which is leading to family breakdown, mental illness and suicide. They are afraid of the banks because of their power and what they are capable of doing. They are terrified at the prospects of their businesses failing or losing their family homes and farms. They are weary of the reporting culture which exists instead of the action culture we so desperately need. They are being choked by the banks' restrictive lending practices and the shortage of credit. They are no longer able to operate their businesses because cash flow has dried up.
On a larger scale, MABS and charities much as the Society of St. Vincent de Paul are unable to deal with issues pertaining to complex debt and the self-employed. The waiting times for MABS are too lengthy. High unemployment is here for the foreseeable future, mortgage arrears statistics are getting worse and bank margins are under continuing pressure from mounting bad debts. Interest rates will only go up because banks will need to increase their margins to regain profitability. The recent withdrawal of certain banks from the Irish market has left consumers with diminished competitive alternatives. Debt management companies are flourishing in an unregulated market, sometimes charging exorbitant fees. Small and medium sized enterprises are on the edge of a financial cliff and consumer confidence is being undermined further as ever more businesses on the main streets of our towns and cities close their doors and leave empty units behind them.
The Future Group can support, enhance and work in unison with the structures that are already in place, such as MABS, the Society of St. Vincent de Paul and other support groups. We can independently assess individuals' situations and options on a one-to-one basis. We can approach the banks to reach a satisfactory outcome or arrange alternatives for the individuals concerned. We can bring clarity to what is often a web of individual and business debts. By opening channels of communication and helping individuals to move on, we can ensure they are best positioned for recovery. We can help to restore their confidence by nursing their financial affairs back to stability. We can relieve the stress on individuals by demonstrating that there is a light at the end of the tunnel. We can educate them in budgeting and forward planning. We can provide a service via a national network of qualified financial advisers who are regulated by the Financial Regulator. We can help to keep the family unit intact. We can assist employment creation by supporting existing and potential small and medium enterprises. As debts should not be considered in isolation, we would examine individuals' overall exposure, including secured and unsecured debts.
We ask the joint committee to endorse and promote our proposals for the good of our people and our country.