New government-backed incentivised savings scheme needed – Lynch

The Government should move to establish a new incentivised savings and investment scheme for Irish households, a Fine Gael Senator has said.

Senator Eileen Lynch, who raised the matter in the Seanad said Irish families deserve a fair and accessible way to save and invest for the future.

“Too many people are left with low-return deposit accounts or complex financial products that offer poor value. We need to see a credible, incentivised scheme that allows ordinary people to build financial security.

“We saw some progress in last week’s Budget with the announcement by Minister Paschal Donohoe of the reduction in the rate of tax applied to gains from certain retail investments from 41% to 38%. However, more must be done to ensure Irish households are maximising their savings and investing for the future.

“Minister of State Robert Troy, who has responsibility for financial services, must work with the Department of Finance to design an incentivised savings scheme and ensure it is accessible through credit unions and community financial institutions.

“In the last few weeks, the European Commission issued a recommendation to member states to encourage them to establish incentivised savings and investment accounts which would encourage savers to invest in accessible investment products backed by shares and bonds. This recommendation is all about getting savings invested in the real economy, including in financing the growth and scaling of indigenous enterprise.

“Now we need decisive action to deliver Ireland’s own savings and investment account, one that is fair, modern and available to all. This reform would not only help households, but also strengthen Ireland’s economy by channelling savings into productive investment.

“I am calling on the Government to publish a clear plan for implementation. Ireland must not be left behind. Let’s give people the tools they need to invest in their futures and share in the nation’s growth,” Senator Lynch concluded.