Dáil Éireann Debate, Thursday - 15 November 2012
99. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which savings have been identified over the past three years and to date in 2012; the way such savings are generally held and the way it might be possible to reward those with savings for investment in job creation in the manufacturing or service areas; and if he will make a statement on the matter. [50801/12]
View answerThe household savings rate has been in double digits over the past three years and remains so in the year to date, while household indebtedness in Q2 2012 fell to the lowest level since Q1 2007. This reflects both households' efforts to reduce their high indebtedness built up during the boom years as well as precautionary motives due to the challenging economic environment. In terms of the percentage share of household financial assets, there has been little change in how they are held. The main difference between Q2 2008 and Q2 2012 is a slight decrease in the percentage of assets held in shares and other equities, with the share of deposits increasing marginally. A number of incentives are available to those who wish to invest in job creation, including the Employment Investment Incentive (EII), a tax relief incentive scheme which provides tax relief for investment in certain corporate trades. Relief is initially available to an individual at 30%, with a further 11% tax relief available where it has been proven that employment levels have increased at the company at the end of the holding period.
The film relief scheme was also introduced, which aims to promote the domestic film industry, by encouraging investment in Irish made films. Tax relief on the full amount of the investment is available to individual investors at their marginal rate of tax (41% for top rate taxpayers) and individual investors can invest up to 50,000 euro under the scheme in any year of assessment .
