Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

It is a very significant hike. Is there an economic rationale behind it as well as it being a budgetary measure? Obviously, it brings in much-needed revenue. Is the logic that the higher the tax on interest earned, the more likely people are to spend their money as opposed to saving it? We know the level of savings is still quite high.

Deputy Pearse Doherty referred to the An Post State savings products. I note that the interest rate they pay reduced quite significantly a number of months ago. I know that is an issue in which the banks were particularly interested. Are we likely to see changes to the rates there also? I know it is a matter for the NTMA to recommend any changes to the interest rates attached to those products. They now have a competitive advantage vis-à-vis the rates being offered by commercial banks.