Question:
63 Dr. Upton asked the Minister for Finance the initiatives he will take to encourage save-as-you-earn schemes; if he has carried out an assessment of these schemes; and if he will make a statement on the matter. [11987/00]
Written Answers. - Savings Schemes.
As the Deputy will be aware, save-as you-earn schemes were introduced in the Finance Act, 1999. There are two elements to an SAYE scheme, an approved savings-related share option scheme and a certified contractual savings scheme.
Under the share option scheme a company can grant an employee an option to purchase shares in the company at a pre-determined price, which cannot be less than 75% of the market value of the shares. The contractual savings scheme allows the employee to save towards the cost of those shares and I am advised by the Revenue Commissioners that they have, to date, certified five separate financial institutions to hold relevant deposits under these schemes.
The Revenue Commissioners have also advised me that to date, 30 companies have received formal approval to operate an SAYE scheme. In addition 29 companies have submitted preliminary documents to the Revenue Commissioners for consideration and these are being examined.
In the region of 33,000 people are employed by the companies which have received approval but it is not possible, at this early stage, to assess these schemes. The schemes will be reviewed each year by way of issue of a return of information to each company. The operation of the SAYE scheme can be monitored in the light of this information.
As regards initiatives to encourage SAYE schemes, I understand that an information booklet has been produced by the Revenue Commissioners and it is available on the Revenue Commissioners web site – www.revenue.ie. In addition, staff from the Office of the Revenue Commissioners have been involved in seminars on SAYE schemes organised by IBEC and the National Centre for Partnership, and I also spoke at both of these.