Sinn Fein has proposed giving children in Ireland 130 euro a year to spend on sports and arts activities.

The Activity Card proposal would see young people aged between four and 18 given a credit of 130 euro on registered sporting organisations.

It is based on a similar model implemented in Iceland in 2007, with the aim of reducing substance abuse among young people.

The party pointed out that the number of Icelandic teenagers aged 15 and 16 who smoked daily fell from 23% to less than 1% over 20 years, and the number who said they were drunk in the past 30 days fell from 42% to 6%.

The party said the proposal would cost 127 million euro a year and would help families who are struggling with the cost-of-living crisis.

It is proposing creating a digital platform where parents would log on and register their children for the Activity Card using their PPS number, proof of identity and address.

This website would list the sporting and cultural clubs and activity providers registered for the Activity Card.

Once the child’s Activity Card has been approved, their account will be credited with 130 euro which can be spent on the website.

Sinn Fein said new legislation would be needed, which would fall under the remit of the Department of Children and Equality.

When asked whether he believed the policy was a good idea, Minister for Health Stephen Donnelly said he has three children who would be “very happy to hear they’re getting 130 euro”.

He added: “I need to look at the total amount of money that would be involved, and I guess the question is: How do you do the most amount of good with it?

“Certainly policy measures that keep children active and moving… and off social media are to be encouraged.

“I need to take a look to see is that the best way to do it, or actually, would you be better off giving a load of money to the sporting organisations to mobilise grassroots boxing or football or athletics or swimming (organisations).”