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

I wish to speak to amendment No. 49. This initiative is worthwhile and is modest. The amount of money allocated is €2.8 million. I recognise it will be demand led, so the amount could be much greater. The estimate from the Department is that 9,500 people might benefit in 2015 and that the average yield for each would be just under €300 so it modest. The change I propose is that the relevant period be increased from four to five years in view of the fact that people will be saving for longer to buy a house. Interest rates are at historic low levels. People who are saving earn 1% or 2% interest on their savings if they are lucky and DIRT tax is 41% of that. This is recognising the reality. In view of the Central Bank rules which may come into play - it is likely there will be some change - which will raise the bar in terms of the amount of a deposit that people are required to save, many people especially in the high rental market will be saving for a long number of years. It is a worthwhile initiative but I am proposing that the period be increased to five years.