Eoin Hayes (Dublin Bay South, Social Democrats)
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598. To ask the Minister for Finance to outline his position on proposals to establish a incentivised savings and investment account scheme for Ireland, similar to the UK ISA; and if he has met, or plans to meet, with an organisation (details supplied) regarding their proposals for an Irish savings and investment account; and if he will make a statement on the matter. [47266/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Discussions around encouraging citizens to invest more have been a large part of the Savings and Investments Union (SIU). The central thrust of the Savings and Investments Union (SIU) project is to help citizens to invest more so as to increase the amount of money they have in their retirement and to use the invested money to grow businesses bringing more growth to the economy. In March, the European Commission launched the SIU Strategy, which includes measures to advance the Capital Markets Union (CMU) project. Included in this strategy was a commitment to adopt a European blueprint for savings and investment accounts. This blueprint is meant to offer Member States a codification of best practice in terms of savings and investment accounts in the EU.

At the national level, we are reviewing the recommendations from the Funds Review. It was a wide-ranging review of the funds and asset management sector. As part of this aspect of the review, proposals made in relation to the development of an incentivised retail savings and investment account were considered.

On 22 October 2024 ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ was published. The report was very timely given the interest in growing retail savings and investments in both Ireland and in the new mandate of the European Commission in the context of the EU Savings and Investment Union (SIU) proposal.

The report made eight recommendations on the topic of retail investment, including recommendations to better align the tax on investment funds and life assurance products with that of direct equities by removing deemed disposal and aligning the rate of tax to 33%. The report noted that there may be merit in exploring an incentivised savings and investment account in due course and developments at EU level in the context of the EU SIU will have relevance in this regard. However, the report concluded that measures proposed for amending the existing taxation of investment funds and life assurance products should be prioritised as these address the most substantive issues raised as part of the review.

The Programme for Government has committed to progress and publish an implementation plan for consideration in Budget 2026 taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland. Detailed consideration is therefore being given to the best way to bring about the necessary reforms and to support a greater level of retail investment in capital markets. It is likely given the breadth of the Funds Sector 2030 review that the delivery of associated tax measures may take place over multiple Finance Bill cycles.

As Minister for Finance, I receive a vast number of pre-Budget Submissions each year relating to the annual Budget. These come from a wide variety of groups, representative organisations and private individuals.

Once a submission is received, it is acknowledged by my officials and then passed to the relevant area of my Department for consideration in the context of the Budget and Finance Bill. I can confirm that a pre-Budget Submission on behalf of the organisation to which the Deputy refers has been received by my Department, along with a request for a meeting with me in advance of the Budget. This meeting request has been under consideration for some time due to diary pressures.

My Department places a high priority on ongoing engagement with stakeholders and I have already met with many groups and representative organisations in the run-up to the Budget. Officials are always willing to consider any requests for meetings, however, as the Deputy will understand, it is not practical for all such requests to be accommodated.

However, in June, my colleague Minister of State Robert Troy and senior officials from the Department of Finance met with Euronext Dublin to discuss their pre-budget submission. As part of this meeting, Euronext’s proposal regarding a savings and investment account was raised. We will continue to consider such proposals going forward in this important area.

This work will also take account of developments at an EU level in respect of the Savings Investment Union. In particular, we look forward to the Commission's forthcoming recommendation on increasing the availability of savings and investment accounts. We expect this to be adopted in the coming weeks.