Tag Archives: Bank of Mum & Dad

From top: Taoiseach leo Vardkar and Minister for Education Richard Bruton; Vanessa FORAN

Vanessa Foran (her off the telly) writes:

I wanted to post some follow up thoughts to the Bank of Mum & Dad segment on Broadsheet on the Telly last evening.

I have to repeat how disappointed I am that the popular Leader of a Country with a national housing and accommodation crisis, that just happens to be running alongside a decade old mortgage arrears crisis, would promote methods for saving for a regulatory deposit that includes the sourcing of funds from parents, and from working overseas.

Only this morning that latter point slipped up on its own banana skin with Minister of Education and  Skills Richard Burton deciding to limit Career Breaks for Teachers. The next National Shortage is already appearing in your blind spot by the way: teachers. (I hardly need to mention nurses, hospital consultants and hospital beds, but it looks like I did anyway.)

In addition to reminding the electorate that young people starting out should look at better paid opportunities overseas. our current Taoiseach is conveniently ignoring an already known obstacle to our economic viability; we have a Labour shortage.

He also failed to bring to your attention that once these future first time buyers get declared Non-Residential, there is also the possibility of a tax implication from remitting funds from Countries Ireland does not have a tax agreement with.

What irks me just as much is that this very Government had an opportunity to promote sensible saving for all first time buyers, regardless of family means, in the last budget; Allow these  first home buyers savings accounts be exempt from DIRT Tax.

Or even create a type of National Home Buyers account with the NTMA, like that of the Solidarity Bond or the old SSIA (Incidentally, I have already promoted this initiative myself to a post Budget Breakfast Meeting hosted by members of Fianna Fáil).

Family Home Mortgages can come off the rails so easily and with no warning. The healthier the deposit, including the source, the more viable the mortgage is, and the more capable it is of surviving an unexpected financial crunch. That is a fact no about of spin and quirky congenial laddish remarks can cloak.

Yet Leo Varadkar himself is advising his own generation and the one coming up behind them, to rely on Mum and Dad, and to head off overseas rather than actually stay here, work and develop careers here, contribute taxes here, and more importantly, save their tax paid income here.

I am one of those who may one day be one of those Banks. But will I get a bail out too?

I am of the generation whose own retirement is within 20 years, I do not have a viable pension plan beyond a State Contributory one.

If Leo Varadkar and Fine Gael are to continue to encourage younger taxpayers to go abroad as a means of getting on the property ladder here, then who do they think will provide the Social Welfare funds when its my turn for that €200 a week?

From my own perspective here as I type off these final words, I cannot deny I am more narked about the shallow leadership displayed in the Oireachtas, and in Leader’s Questions no less, and the narrow minded long-term planning of Leo Varadkar’s Fine Gael.

The very least we should expect from a Taoiseach and Government who are provided with a well funded Communications Unit, along with brigades of Special Advisors is some disciplined and sensible messaging.

Our Taoiseach and his Government could have at least tried to be seen to promote equal opportunity, from access to secure homeownership to quality education, and the many many other basic pillars for an equal, fair, healthy and civilised society to all our children; no matter who they are, or where they are from.

Promoting the Bank of Mum and Dad has actually confirmed to me who is really gaming the system.

Vanessa Foran is a principal at Recovery Partners. Follow Vanessa on Twitter: @vef_pip

Previously: You’re 100 Per Cent On Your Own Son