Special Savings Incentive Scheme.

Tuesday, 13 December 2005

Questions (78)

Michael D. Higgins

Question:

108 Mr. M. Higgins asked the Minister for Finance the number of special savings investment scheme accounts opened at the latest date for which figures are available; the average amount of savings per investor per month; if, on the basis of such figures, his Department can give a definite figure for likely cost to the Exchequer of the specials savings investment scheme; when the first payments will become due; the amount expected to be paid out by the Exchequer in each of the first 12 months after the SSIAs mature; and if he will make a statement on the matter. [39018/05]

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Written answers

Minister for Finance (Mr. Cowen)

I am advised by the Revenue Commissioners that based on the analysis of the 2004 SSIA annual returns furnished by all qualifying savings managers, the total number of active accounts at 31 December 2004 was 1,094,294 and the average monthly subscription at that date was €175. This is the latest date for which figures are available.

As indicated in replies to previous questions, it is not possible to give a definitive answer as to the eventual cost of the scheme as it is subject to a number of variables, including where participants voluntarily withdraw from the scheme or vary their monthly contributions over the remaining period of the scheme. For this reason also, it is not possible to state the amount expected to be paid out by the Exchequer in each of the 12 months after the SSIAs begin to mature in May 2006.

The cost of the scheme in 2004 was €548 million. If the current average monthly subscription for the first 11 months of 2005 continues for a full year, the annual cost in 2005 would be approximately €596 million. The total gross cost over the period of the scheme is reduced by the exit tax to be returned when the accounts mature. The first SSIA accounts are due to mature at end May 2006.

Question No. 109 answered with QuestionNo. 101.