Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

There is great merit in the Deputy's proposal for a scheme that would give people the tools to develop an ethos of saving for life events and avoid the need to approach moneylenders. The scheme we have provided for in this Bill will be up and running this week and will operate initially on a six-month pilot basis. We have agreement with An Post to move forward on the basis the legislation goes through the House.

In regard to what the Deputy is proposing, there are problems in respect of competition law and other issues. It is a complicated area. I am, in principle, in favour of what he is proposing, and it certainly can be considered at the end of the six-month pilot in the context of the changes that need to be made to improve the scheme we are introducing. However, a savings scheme such as the Deputy has outlined might be more suitable to operate under the standard bank account where we would be able to allow jam-jarring of moneys within an account or accounts. A considerable amount of work has been done on this and related issues by the Department of Communications, Energy and Natural Resources and An Post in the context of the Kerr report on the future of post offices. Time is being given to these matters by several Departments and my hope and intention is that, in some manner, whether through the standard bank account or an amendment to the pilot scheme, we might be able to review the legislation with a view to facilitating the provision of a savings scheme such as the Deputy has proposed through the credit unions. Consideration must be given, however, to any unintentional consequences that might arise out of such a scheme. The Deputy's proposal has merit but what he is suggesting might fit better, within the legislative framework, were it to apply to the standard account. Certainly, his intention is excellent in bringing forward this amendment.

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