DOMINIC COYLEanswers your queries
Tracking the source of parking deduction
Q
I am writing in respect of the €200 parking levy which was contained in the Finance Bill, 2008. This charge was to be imposed on those of us who use car parking spaces at our place of employment.
My employer has been deducting a pro rata amount from my monthly salary in respect of this levy for some months now. However, it is unclear if the [relevant] Minister has signed the Commencement Order to formally introduce this charge.
Could you clarify the position?
- Mr AL, Meath
A
I think you need to have a word with your employer. You are correct that the levy was introduced in the 2008 Finance Act to offset the perceived benefit-in-kind of having a parking space available at work and to combat congestion in built-up urban areas.
However, no sooner was it announced, then a plethora of logistical problems emerged – both in terms of who should pay and how much.
Around a year ago, it was decided to introduce a
pilot scheme between the canals in Dublin – an initiative that was expected to raise around
€5 million in a year. This too was bedevilled by uncertainty with exemptions proposed for people who did not have regular public transport links.
In the end, the Department of Finance tells me that even this pilot scheme was shelved.
As it stands, no Minister has signed a Commencement Order and I am given to understand that the issue has been overtaken in terms of priorities.
If your employer is charging you, you should challenge them as to the basis for the deduction.
Chasing interest on my SSIA savings
Q
I have money from a matured SSIA account, and it’s sitting in the Bank of Ireland but doesn’t seem to be earning any interest.
Where would be a good place to put that money to gather good interest over a few years?
I was reading about an EBS account?
- Mr AG, e-mail
A
If, amid all the chaos and debt, you have managed to retain your Special Savings Incentive Account savings, you have done well.
While there is considerable uncertainty about the future, there are a wide range of accounts which currently carry a Government guarantee. These would include EBS, which is now a part of AIB, and Bank of Ireland, which certainly has some accounts offering interest.
It may be that you have found yourself in a legacy account. Quite often, accounts that would have been attractive at one time see the interest on offer diminish. This is largely because banks play on people’s inertia. They know that most people leave their money lie once it is invested.
By offering the more attractive interest rates on new products, they attract new savings while paying little or nothing to longer-standing savings customers.
This practice is by no means limited to Bank of Ireland
In terms of interest rates on offer, the best currently available appear to be on An Post savings certificate and bonds, which have the added advantage of being tax- free while you will have to pay DIRT elsewhere.
This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into.
Please send your queries to Dominic Coyle, QA, The Irish Times, 24-28 Tara Street, Dublin 2. E-mail: dcoyle@irishtimes.com
