Dáil Éireann debate -
Wednesday, 27 Jun 2001

Vol. 539 No. 2

Written Answers. - Savings Schemes.

Thomas P. Broughan

Question:

38 Mr. Broughan asked the Minister for Finance if he has any proposals regarding savings schemes for people on low incomes and social welfare income; if he has received any advice from the money advice and budgeting services unit of the Department of Social, Community and Family Affairs in this regard, in view of widespread criticism of the new special incentive savings schemes' likely lack of impact for low income families. [15275/01]

Minister for Finance (Mr. McCreevy)

Any incentive, whether tax or grant, is available only if one carries out the action necessary to obtain it. I have done my best over the past number of years to put as many people as possible in a situation where they can now save, through general improvement in the economy and consequent rise in living standards. The scheme is a general one and seeks to encompass everyone over 18 in the State; while not everyone will in fact participate, for various reasons, this does not negate the scheme itself. As far as is practicable, I have done my best to make the scheme accessible by requiring that as little as the equivalent of about £2.50 per week only needs to 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, I should point out that providing a standard rate of tax credit available to everyone irrespective of their 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 try to ensure that it has broad appeal and benefit.

I have no proposals to introduce any further saving scheme nor have I received advice from the money advice and budgeting service unit of the Department of Social Community and Family Affairs in this regard.