Dáil Éireann debate -
Tuesday, 10 Dec 2002

Vol. 559 No. 1

Written Answers. - Special Savings Incentive Scheme.

Liz McManus

Question:

58 Ms McManus asked the Minister for Finance the number of applications received for the special savings investment scheme at the closing date for applications; the average amount of savings per investor per month; if, on the basis of such figures, his Department can give a definite figure for the likely cost to the Exchequer of the special savings investment scheme; if he plans changes or modifications to the scheme; and if he will make a statement on the matter. [25560/02]

Minister for Finance (Mr. McCreevy)

While the number of applications received by the closing date for the special savings incentive scheme is not available, the number of accounts opened at 30 April 2002 was 1,170,208. The tentatively estimated average monthly contribution per investor on the basis of the best available data is approximately €150.

It is impossible to give a definitive answer as to the eventual cost of the scheme as it is subject to a number of variables such as where participants die, withdraw from the scheme or vary their monthly contributions. Using the existing data and assuming that these variations will broadly cancel each other out, it is estimated that the full year cost to the Exchequer would be in the region of €525 million.

However, anecdotal evidence is that significant numbers of account holders recently raised their monthly contributions, and on that basis the budget tax forecasts prudently assumed a total annual cost of the order of €600 million to 2005. As the cost depends on customer behaviour, about which no-one can be certain, I cannot give a definitive figure of future costs to the Exchequer but obviously the costings are kept under ongoing review and analysis.