Vol. 539 No. 1
209 Mr. Sargent asked the Minister for Finance if he will report on the level of concern expressed to him and to his Department regarding the difficulty for people on low incomes to benefit from his special savings incentive account scheme compared to well off persons; and the way in which he proposes to address this aspect of his policy. [18964/01]
Any incentive, whether tax or grant, is available only if one carries out the action necessary to obtain it. In recent years I have done my best to put as many people as possible in a position where they can save through a general improvement in the economy and consequent rise in living standards. The scheme is a general one and seeks to encompass everyone over 18 years in the State. While not everyone will participate, for various reasons, this does not negate the scheme. As far as is practicable I have done my best to make the scheme accessible by requiring that as little as £2.50 per week must be saved by an individual to qualify for participation in a special savings incentive account. A number of deposit taking institutions are offering products which facilitate the small saver in this regard.
Moreover, providing that a standard rate of tax credit is available to everyone, irrespective of his or her tax position, means that every saver who saves the same amount will get the same benefit. The amount per month saved that can benefit is also limited. Other proposals put to me before the introduction of the scheme would have featured marginal rate relief or limits on type of investments, features likely to be of more benefit to the better off. In arranging the scheme, features have been built in to ensure it had broad appeal and benefit.
