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

I move amendment No. 73:

In page 34, between lines 2 and 3, to insert the following:

"(3) The Minister shall, within three months of the passing of this Act, prepare and lay before the Oireachtas a report on the breaking of the link between the rate of DIRT and the rate of exit tax from life assurance policies, including the impact of this on life assurance savers.".

This amendment relates to the reduction in the DIRT tax, which I welcome. The issue I am raising by way of the amendment is the breaking of the link that has existed for well over a decade between the rate of DIRT tax and the rate of exit tax applicable to life assurance investments, for example. The yield from the exit tax on such investment projects has increased dramatically in recent years. At the heart of this amendment is that there will now be a discrimination between the different types of savings and investment products which has not existed heretofore. This comes at a time when, as the Minister of State will be aware, returns are close to zero across many of the savings, deposit and investment products and there is already a 1% stamp duty on life assurance investment products. I pre-empted the amendment being ruled out of order, had I proposed that the link be retained, by putting it in the context of a report as to the consequences of doing this for people who are saving through investment instruments. That is the key issue.