asked the Minister for Finance if he is aware that the investigation officers under the Old Age Pension Act, 1932, assess the incomes of applicants for old age pensions who have deposits in the banks at the rate of 5 per cent., although the rate of interest payable by the banks is only 1 per cent.; and if he will take steps to amend the Act so as to terminate this injustice which is being inflicted on a very deserving section of the community.
Ceisteanna — Questions. Oral Answers. - Old Age Pensioners' Bank Deposits.
In calculating the means of a person for old age pension purposes, the yearly value of any property (including bank deposits) not being personally used by him, is assessed as follows:— The first £25 is excluded, the next £375 is taken at 5 per cent. and the balance at 10 per cent. I do not propose, at present, to take any steps to amend the law in this regard.
Does the Minister not consider it a hardship that a section of the community should be taxed at the rate of 5 per cent. in respect of money on which they get only 1 per cent.?
All taxes are a hardship of one kind or another on somebody.
That is only evading the question. Surely there is no other section which is taxed at the rate of 5 per cent. in respect of money on which they get only 1 per cent. from the banks?
It is entirely a matter for the investor. He can improve his investment by putting his money in the Post Office Savings Bank where he will get 2½ per cent.
Owing to the unsatisfactory nature of the reply, I ask your permission, Sir, to raise this matter on the Adjournment.
I have already had notice of another matter for the adjournment. I shall consider which notice should have precedence.