Fiscal Policy

Dáil Éireann Debate, Wednesday - 18 May 2016

Wednesday, 18 May 2016

Ceisteanna (54)

Bernard Durkan

Ceist:

54. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which consideration has been given or might be given to the possible utilisation of personal savings, currently the subject of deposit interest retention tax, for strategic infrastructural national development purposes on which a better return could be made available to those with savings, given the current low interest rates and the need for funding to facilitate various infrastructural projects such as the housing building programme, either directly or by way of a Government bond; and if he will make a statement on the matter. [10848/16]

Freagraí scríofa

Minister for Finance

It is a matter of choice for savers as to how they choose to save their personal funds.  At present, there are a wide variety of options, including commercial banks, credit unions, the post office, and other savings and investment products from which savers can select.  The State cannot dictate how savings are utilised but the NTMA through State Savings Ireland has a range of savings products, including variable rate savings accounts and fixed rate savings bonds/certificates.  These products are available through the Post Office network with further information available at www.statesavings.ie.

The funds raised through these state savings are treated the same as other Government borrowing and are paid into the Central Fund from which they are used to fund Government expenditure generally, including capital expenditure. Liabilities under the State Savings products offered by the National Treasury Management Agency (NTMA) are a direct, unconditional obligation of the Government. To link such investments to specific projects would have the consequence of reducing their security and their attractiveness to investors.

Question No. 55 answered with Question No. 50.