237. Deputy Ged Nash asked the Tánaiste and Minister for Finance his plans for a new savings and investment scheme for retail investors; the estimated cost to the Exchequer in terms of tax foregone in the first five years of the new scheme under preparation; and if he will make a statement on the matter. [26421/26]

Sentiment score: 0.01

I ask the Minister to update the House on his plans for a new savings and investment scheme for retail investors and if he could enlighten the House as to what he anticipates the estimated cost to the Exchequer in terms of tax forgone in the first five years of the scheme might be, and if there is, in fact, an assessment already done on that basis.

Sentiment score: 0.51

I welcome the debate on this. I accept that we need reform in this area. I have no difficulty with that. There has been a lot of focus on the deemed disposal rule. There is no doubt that how it operates is an anachronism and reform is needed. That should not sideline us from the need to develop alternative routes to allow people to plan for their future. I am glad the Tánaiste referred to the context of what people are experiencing at the moment. Investment is very much a minority sport. Most people are concerned with surviving and not how they are going to invest relatively substantial amounts that they have on deposit on schemes and accounts that may deliver more for them. I accept that this does need to be part of the solution in terms of preparing people for the future. Mention has been made by ourselves in the Labour Party, and by the other parties, of the need to develop some products that might enable Irish people to invest some of their hard-earned savings in, for example, housing development in Ireland and in assisting high-potential start-ups, and so on. Is that the kind of area that the Tánaiste expects people to be able to invest in at a reasonable rate?

Sentiment score: 0.18

I understand that people are risk averse because people have been burnt before. There are always risks to investing. Any model or scheme that is developed has to be very clear on that. I understand why the Tánaiste might want to dip his toe in the water in a tentative fashion in the first instance, and then maybe move from there. The Tánaiste has been quoted as favouring the Swedish model. It is one that people will be familiar with. On the basis that he has an understanding of the Swedish model and his officials may be going in that direction, has any assessment been done at this point on the tax implications for the Exchequer on the tax expenditure side in terms of tax forgone? It would be relatively easy to come to some kind of a conclusion - at least on a desktop basis - as to what the implications would be if we were to introduce a very simple straightforward model like the Swedish one. The Tánaiste seems to be moving away from the UK ISA-type model. Could he put his thinking on that, and what is informing it, on the record? In the available time, could he also indicate what engagement he has had on this with the Central Bank and if it has been helpful in assisting the Department?

Sentiment score: 0.15