€175 billion 'sitting in banks' that could be 'building homes and wind turbines'

The Green Party has warned that Simon Harris’s proposed state-investment scheme could unfairly tax savers even during losses, urging the government to adopt a Norwegian-style model instead that could fund "building homes and wind turbines"

News Stephen Holland Local Democracy Reporter 16:40, 13 Aug 2026 View Image The Green Party’s finance spokesperson Councillor Michael Pidgeon (Image: Green Party)

Simon Harris’s proposed state-investment scheme could actually lead to people losing money according to the Green Party’s finance spokesperson.

Figures from the Central Bank show that as of May Irish households had €175 billion sitting in the bank. These funds hold huge savings and investment potential, although Tánaiste Harris agrees that Irish residents are getting “screwed over” by a punishing tax system and low interest rates.

“We're getting screwed over, quite frankly, as savers by a tax system that is punitive and by interest rates that are too low,” he told RTÉ Radio’s Today with David McCullagh show. This saw him outline plans for a State-savings scheme.

“What we're intending to do is set up a product, an opportunity for people to set aside some money in an investment account that will give them a better yield. I think there's a very significant appetite for this. The details will be outlined on budget day. The accounts will be available from next year.”

While the hard facts of what this ‘product’ would entail have not been officially laid out, Mr Harris has stated that the Swedish model of a low tax savings account is “very interesting”. Speaking with the Journal last March, Mr Harris referenced this model having a tax-free threshold up to a certain point.

“From my perspective, I think we need to do a form of saving and investment account because it makes sense, and people aren’t making any money on their deposits. I think a lot of middle-Ireland , hardworking people are locked out of investments,” he said.

But, this model is not without its detractors, as Green Party Councillor Michael Pidgeon has stated this proposed investment account could end up taxing people who are losing money. While there may be a tax-free threshold, he highlighted that this system charges tax on the total value of a person’s saving, which means a tax bill even when investments make very little, or are losing money.

“Simon Harris has fallen for a Swedish model, and like most people who do, he hasn't thought it through,” Cllr Pidgeon stated.

“The Swedish system carries real risks for Ireland’s savers and investors. A system that bills people who are losing money is deeply wrong. The state should only be calling in the taxman when big gains are being taken.

“This is why the Greens are instead proposing a Norwegian-style investment account, which is simple to use and much fairer for consumers.”

The Green Party is proposing that the investment account exclude tax relief from "harmful industries,” such as fossil fuel extraction, tobacco, and weapons. They are also suggesting that the default investments offered to consumers would support the construction of cost-rental housing and green energy projects.

"There is €175 billion sitting in Irish banks earning next to nothing. That money could be building homes and wind turbines,” Cllr Pidgeon said.

"Ireland’s own investment fund divested from fossil fuels in 2018. It has just banned the import of goods from illegal settlements. It would be very strange to now hand people a tax break to invest in the very same things."

The Green Party’s proposal agrees that Irish households are “losing money in real terms simply by saving,” as they claim nine out of every ten euro of the €175 billion in bank deposits sits in overnight accounts “earning next to nothing”.

But they state that the Swedish model will tax on what savings are worth, rather than what they earn. “Swedish savers were taxed on falling portfolios in 2018 and again in 2022. If a bubble bursts or a global recession hits, Irish households would be taxed while they lose money,” the proposal explained.

The Green alternative is modelled on the Norwegian Aksjesparekonto, where a normal return is exempt and tax falls only on real gains actually taken out. “Nothing is taxed inside the account. Buy, sell, switch, receive dividends. No paperwork, no tax return, no deemed disposal,” they said.

Whichever investment model ultimately moves forward, it is clear there is a lot of money sitting in Irish bank accounts that could be put to better use. While central government and opposition parties don’t always see eye to eye, it seems both Mr Harris’s Fine Gael and Cllr Pidgeon’s Green Party agree action is needed to avoid the Irish public continually getting ‘screwed over’ when trying to save in good faith.

This content is funded by the Local Democracy Reporting Scheme

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