asked the Minister for Finance if he will increase the value and number of prizes for prize bond draws.
Ceisteanna—Questions. Oral Answers. - Prize Bond Draws.
17.
The answer is in the negative.
May I point out to the Minister that the actual level of prizes being paid does not represent interest at 8 per cent, which is a very moderate rate of interest in present terms and that, as the inducement to investors to buy prize bonds is the number and level of prizes, would the Minister not consider increasing the prize fund? Remuneration would be considerably less than in the case of an ordinary national loan and it would make it more attractive.
The rate of interest is equivalent to 6 per cent gross, standard rate of income tax, and this compares with three months Exchequer bills, which is around 6 per cent, subject to tax, and the fund is repayable on demand. In the opinion of the Minister for Finance, the recent improvements, which commenced in March, 1971, have been reasonably successful in their operation—the increase in the value of prizes, the increase in the rate of interest from 4 to 4½ per cent, net, and draws being held each month, prize bonds on sale all the year round and the fact that a bond may win a prize up to 24 calendar months after the death of a holder. He is of the opinion that these improvements in the scheme are adequate.
While agreeing that these were improvements, would the Minister, in order to encourage saving, which is so important to the national economy, not make further improvements? There is room to do it.
Not at the present time.