The body representing the unemployed, the INOU, today voiced its concerns that the Government-sponsored Special Savings Incentive Scheme will widen the gap between Ireland’s rich and poor.
Reacting to the news that the savings scheme will cost the exchequer €2.4 billion over the next five years, INOU general secretary Mr Eric Conroy expressed concern that the cost of the scheme may have consequences on future government spending on social welfare and labour schemes.
Mr Conroy said the money spent on the scheme could have lifted minimum wage earners out of the tax net completely. It could also have met the INOU’s key demand of pegging the lowest social welfare payment to 30 per cent of gross industrial earnings.
Initial estimates show that €15 billion will be invested in SSIAs with the government committed to contribute €1 for every €4 invested.
Mr Conroy said it was "almost impossible" for someone on single unemployment assistance of €118 per week to make the scheme’s minimum monthly payment of €12.70.
"In contrast someone who earns €118 a day will find it easy to make the maximum investment of €254 a month" Mr Conroy said.
He said those who will most reap the rewards of the SSIA scheme are probably already in savings schemes such as pensions and needed only to divert their savings to make a 25 per cent return.