Sir, - Recent reductions in interest rates will clearly be of benefit to both mortgage holders and other borrowers. They will, however, be disastrous for small savers and people with Special Savings Accounts (SSAs) who will find their incomes greatly reduced.
In his last Budget, the Minister for Finance gave old-age pensioners an increase of £5 per week while at the same time he increased the DIRT on SSAs to 20 per cent - an increase of one third, leaving OAPs holding such accounts with virtually no net increase. SSAs are held mostly by people of 65 years of age and over, many of whom, including the self-employed, do not qualify for a State pension.
I suggest that the Minister, in the forthcoming Budget, should make some concession to these older people and should reduce the DIRT charged on interest from SSAs at least to the previous level for those of 65 years of age and over. - Yours, etc., Marie B McCarthy,
Drummartin Close, Dublin 14.