Bike scheme benefits the sellers mostly
Published 23/06/2011 | 05:00
Having read James Leahy's letter (June 22) on the subject of the cycle to work scheme, I used the savings calculator of a well-known cycle sales store to calculate the savings available to a person on a minimum wage of around €16,000 and a person earning €100,000 a year.
On purchasing a bike costing €400, the minimum wage earner will save €104 and the person on €100,000 will save €188, a difference of 80pc. On purchasing a bike costing €1,000 the minimum wage earner will save €260 and the €100,000 earner will save €470, again a difference of 80pc.
Thus those employees who would benefit most from a subsidy benefit least and those who have no need of a subsidy benefit most.