Government's savings scheme criticised

A religious group is criticising the new Government-subsidised savings scheme as "deeply unfair", and serves to widen the gap between rich and poor.

A religious group is criticising the new Government-subsidised savings scheme as "deeply unfair", and claims that it widens the gap between rich and poor.

The scheme, which comes into effect on May 1 under the 2001 finance bill, will offer investors who save up to £200 per month for five years a 20% bonus.

But the Conference of Religious in Ireland believes the scheme will only benefit those who can afford to save and already have benefited from tax cuts.

Father Sean Healy of the CORI Justice Commission, said there should also be benefits for the less well off.

"I've no problem at all with the measure in terms of it promoting savings. I'd be very positive about that. All that it's benefiting, though, is rich people.

"There should be a measure that would benefit poorer people and that should be a substantial increase in the bottom social welfare rates."