Harris unsure if ‘acorn scheme’ will be agreed

By Cillian Sherlock, PA

Fine Gael and Fianna Fáil have not come to an agreement on a so-called “acorn scheme” for families with newborns, Simon Harris has said.

Fine Gael’s election manifesto included a plan to pay €1,000 into a savings account for all newborns, and €1,500 for children in families receiving child-support payments.

Families would be encouraged to top-up the account by up to €2,000 per year and the State says the money will accrue on a 4% interest rate.

Those with the €1,500 initial amount would see the sum grow to around €3,000 if no additional top-ups were added, while the maximum the account could reach is more than €53,000.

Mr Harris has previously rejected assertions that the scheme would magnify inequality.

He said the plan was about creating a culture of saving and that other measures would be introduced to tackle child poverty.

Speaking on Thursday, Mr Harris said he did not know if anything resembling the scheme would be delivered by the next Government.

Discussing ongoing talks with Fianna Fáil, the Taoiseach told reporters: “We’re trying to find the areas of agreement, and we’re trying to work through the areas where we had different policy focus.

“I don’t want to pre-empt that, other than to say – at broad level – I think putting structures in place to help families save and prepare for the future is a good policy worthy of consideration.”

Pressed on whether he expected a version of the scheme to be in the programme for Government, Mr Harris added: “I don’t know yet. I mean, the talks are still underway, chapter by chapter.

“My negotiating team are doing an excellent job engaging with their interlocutors in Fianna Fail. Issues then come up to leaders where there’s an issue of disagreements or an issue in clarity and we’re working our way through that. So, nothing yet agreed.”