Call for 'son of SSIA' scheme
Monday, 6 October 2003
The Minister for Finance Charlie McCreevy should announce a successor scheme to the SSIA special saving accounts in his next budget, according to Trinity economics professor Philip Lane.
Addressing the ESRI's Budget Perspectives conference, Lane said the minister should announce that there would be incentives to transfer the money into a pension plan to stop a massive spending spree when SSIAs mature in 2006 and 2007.
Lane also said a new scheme to encourage saving should be introduced after SSIAs, but with less generous inducements offered by the Government.
In his paper Lane also argues that the Government should use its presidency of the EU to lead the reform of the stability and growth pact.
He also rejected proposals from the ESRI that payments into the National Pensions Reserve Fund should be suspended. However he said the fund should improve the communication of its investment strategy, and refrain from investing in the domestic economy, where it could be subject to political pressures.
