118. Deputy Ged Nash asked the Tánaiste and Minister for Finance to provide details of the impact assessments undertaken on Exchequer revenues in relation to the proposed savings and investment account. [68940/26]

Has the Tánaiste carried out an impact assessment in terms of the Exchequer related to his proposed saving and investment accounts proposition, and where that is at? I expect we will hear more about this and the details around the proposal in next week's budget, but at this point will he confirm that an assessment of the impact on the Exchequer has taken place, and if he is prepared to publish that assessment?

I thank Deputy Nash. The introduction of the investment account is a key step in fostering a stronger culture of long-term investment in our country and supporting greater financial resilience over time for individuals and families. We want to provide a simple, accessible and attractive framework for investment. The investment account will help individuals to put their savings to work, strengthen their economic resilience by helping people build assets, prepare for future financial needs, and improve their ability of our citizens to withstand economic shocks. It also contributes to the broader piece of work going on in deepening Europe's and Ireland's capital markets. While many of the parameters of the investment account have been shared and published in the roadmap on the taxation of retail investment this summer, a number of aspects, as the Deputy rightly suggests, will be announced on budget day, including the tax-free threshold, the flat rate of tax that will apply and the maximum amount you can contribute to an account in one year. In that context, final estimates of initial costs to the Exchequer on the introduction of the investment account will be provided as part of budget 2027. We will also provide, as the Deputy seeks, an economic impact assessment of the proposed investment account. The assessment uses a modified version of the dynamic representative agent model developed by the European Commission. The model has been adjusted to incorporate Irish parameters and data. It examines the potential impact of the proposed account on household investment, wealth accumulation, consumption and Exchequer revenues over a 20-year period. It compares the introduction of the account with a baseline in which there is no policy change. The analysis uses Irish household wealth data from the European Central Bank and income data from the Central Statistics Office. It also takes account of international experiences. In addition, the staff working document published with the European Commission's recommendation on savings and investment accounts in 2025 considered the potential fiscal impact of introducing investment accounts on member states at the EU level and suggests that these changes would have a positive economic impact. To cut a long story short, yes, we will publish it, and it will be published in advance of this House considering legislation and the detail of that legislation, so that we will then have an opportunity to tease through it together.

I expect then, from what the Tánaiste is saying, we will see more details next week in the budget but that a lot of the tax-related matters will be addressed in the context of the Finance Bill that we will be dealing with in early November. Figures published by the IBEC group, Financial Services Ireland, would suggest that there will be a conservative 10% adult uptake. It applies a €30,000 tax-free annual allowance so that is probably a threshold that has been inserted into the media and with which we are familiar. It said that its first-year cost estimate would be approximately €54 million in foregone tax receipts. Is that an estimate that is familiar to the Government? Is that the baseline on which it is working? I would find it useful if the Tánaiste could establish, given his clear interest in this issue - he has been interested in this issue for some time now - an assessment in terms of the number of savers who may take up the opportunity to engage in this form of an account in the first year or two.

These are very fair questions. I am very happy to engage with them and we should engage with them in detail through the Finance Bill piece.

While we have seen a significant uptake in these accounts in a number of member states that have introduced them, I do not see this as a kind of light bulb or light switch moment. I see this more as a cultural change in terms of finance and investment that we will be on over a number of years and, if and when this works, I see this as being a moment that we will look back on in ten, 15 or 20 years, perhaps a bit like auto-enrolment, and see that it made a real and meaningful difference.

We need to make these decisions as a collective in government, but I expect the Exchequer impact, and I want to thank the Minister of State, Deputy Troy, for his work on this, to be very modest in the first year. I expect the economic assessment that I will publish to show the positive impact that this will have, which would also be in line with what the European Commission has found when it has looked at it on a member state level.

I have tried to put quite a lot on the record of the House in terms of the various information and methodology that we are following in terms of public finances. We want to get this right but the threshold-----

Go raibh maith agat, a Aire.

Sorry, my apologies.

There is probably never a good time to launch an initiative like this given with what is happening with the US Treasury at the moment. In addition, given the kind of investment that will take place because of the products available such as bonds, exchange-traded funds, ETFs, shares and so on, it may not be the best time ever to do it.

I will be straight with the Minister. I do not see this in the scheme of things as being a priority. It is something that will happen. It has to happen. I understand why people will want the money that they have on deposit in bank accounts that is not earning an awful lot in interest at the moment to work harder for them, but I have said it before and I will say it again, it may very well be a bit of a minority sport. The reality is that people who may be watching in this evening and people who are following Dáil proceedings, this will be the last thing on their mind during a cost-of-living crisis when they are finding it hard to pay the bills.

I have no issue with the principle of it. It very much aligns with the objectives of the European Union in terms of savings and investments, capital markets and so on. I have no issue with that, but there will be tax foregone. It may ultimately prove to be beneficial to our economy and society but time will tell.

I very much agree that time will tell is a fair analysis of the situation, and I appreciate that the Deputy does not have an ideological or principled objection to it. I also appreciate that this House will want to get the detail right and will want to tease through that.

I fully accept that we are living through a cost-of-living crisis and I fully accept that that it is real, but alongside that there is data from the CSO published only in the past month that shows that Irish people are continuing to save in many cases. They are small amounts, and this is not the Government or the Oireachtas telling them to open an investment account, but for those people trying to set aside very small amounts and a few bob, we want them to be able have the same opportunities, and quite frankly they do not at the moment because the tax system has been too complex. People have had to be a tax expert or a wealthy person to be able to avail of investments. Over time I might be able to convince the Deputy that this is something that the labour movement and the Government can align on in terms of it actually being something that is fundamentally good for ordinary workers.

However, I fully accept that this is not in any way being put forward by the Government as a response to the cost-of-living crisis but more actually to building up economic resilience over time for households.