@Alan McDougall,
The title of the thread, being "Why does God permit evil?", assumes the presup that God in fact does exist. I will assume the same presup and not pause to negate or defend that point at this time.
The question is a re-stating of the problem of evil, which anytime I've heard it stated formally, attacks one of three attributes of the Judeo-Christian God; omnipotence, omniscience, all-good (all-loving). I will also assume that the discussion focuses on this God. remember I am taking for granted that this Judeo-Christian God does exist without proof as that is not the question stated (at least as I read it.)
If this is the reason for this question being asked then a definition of the three attributes needs to be reached.
All-good (all-loving) - Since God created everything (material and immaterial) then God also defines what is good and evil. So God is in fact good because he is God, if you disagree with him on this point, tough he holds all the aces.
Omniscience - God knows everything and there is nothing that is beyond his knowledge. I would also include the attributes of omnipresence and trancendance in his omniscience.
Omnipotence - God can do anything
that is within his nature. For God to do something outside of his nature would negate his Godhood. Therefore no silliness like "Can God make a rock so big...?" and "Can God cease being God?"
Also evil needs to be defined.
Evil - anything that is contrary to the nature of God is evil to the degree that is removed from his nature.
If you agree so far then let me re-state the question if not please ask questions.
Why does God allow what is contrary to his nature to occur?