There once was a time when the sight of someone rattling a charity tin in the town centre or the pub would send your hands delving into your pocket or purse to fish out any loose change you might have. You knew that your money would be going to a good cause, be it Guide Dogs, Dr Barnardo or Oxfam. Most charities relied on this form of donation and I cannot remember anyone ever objecting to it.
Of course, methods changed as times changed. We are more likely to set up a Direct Debit to give Save the Children or the RNLI our five pounds per month these days, but the principle remains the same. People in Monmouthshire are like any other part of the country. We want to help fund charities and we want our money to make a difference in our chosen area.
Recently, however, a far more sinister force has entered into the equation. The so-called 'Big Society' has cast a shadow over the future of charitable donations and is seriously threatening the goodwill of the British people. Let me explain.
David Cameron has a Big Idea (which admittedly not many people understand). It involves services which were previously run in the public sector being managed by collections of volunteers, charities and 'third sector' groups. The state will not fund these services in the way it did - it will be up to the groups themselves to finance them. However, 'Call me Dave' isn't going to allow these groups to fend for themselves - he's going to set up a bank to help them.
Now, I know what you're thinking, what a wonderful idea. Given people's current attitude towards financial institutions, setting up a new bank is a bit like eating your own foot. It makes no sense and people will think there's something seriously wrong with you. Perhaps David Cameron is hoping that the Big Society Bank will generously fund the Conservative Party like so many others do!
There is something far more sinister behind these negotiations, though, something which shows the Conservative Party's real aims and desires.
The 'Big Society Bank' is funded by what we know as 'Clearing Banks' - High Street Banks, in other words. These banks are commercial entities - set up to make a profit. Recent history has shown us that they seem to be able to privatise any profit and nationalise any debt. If they make money, it funds massive bonuses for their bosses. If they make losses, we pick up the tab.
The negotiations about the 'Big Society Bank' culminated with a massive cave-in from Chancellor George Osborne. He agreed to allow the banks to charge commercial interest rates to any groups borrowing money to run services previously in the public sector. While this may not sound too horrific, consider this scenario:
Lets say Monmouth has a Youth Group called 'YP1'. Lets imagine that this used to be funded by the County Council, but funding has been withdrawn because of Central Government cuts. A registered charity called 'Young People Action' come forward and offer to run the group. To do this, YPA need to borrow £200,000 from the 'Big Society Bank'. YPA are given the loan, but charged an interest rate of 5%. Over the two years of the project, the banks charge YPA an extra £10,000 in interest. This is £10,000 which is not going into helping the young people of Monmouth, but into the profits of the banks. Even worse than this, YPA raise money from donations. The people of Monmouth are reaching into their pockets to give to charity, just to see part of that cash siphoned off to boost the profits of banks. The ultimate indignity is that many banks use their profits to pay obscene bonuses to their senior management, such as that which was widely condemned as 'pure greed' earlier this week.
In this scenario, for every £1 dropped into the charity tin, 5p goes straight into the pockets of the bankers. Of course, there is no 'YP1' and no 'YPA'. They are made up. But the scenario isn't. It is very, very real. This is not a soothsayer-style warning, but an accurate description of what is going to happen.
Of course 'The Big Society' is not just a cover for cuts in public services. It's also a cover for banks to make excessive profits, pay eye-watering bonuses and allow them to make more huge donations to the Conservative Party. We shouldn't be surprised. The Tory Government is constantly telling us that the defecit is all Labour's fault and allowing the banks to escape the blame that is rightfully theirs. In return, the banks are going to escape the regulation they deserve and be allowed to run riot once again. With this amount of back-scratching happening, I'd be very surprised if anyone in the banks or the Tory party have any fingernails left.
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