Vol. 536 No. 4
70 Mr. Howlin asked the Minister for Finance if an assessment has been undertaken by his Department of the likely cost to the Exchequer of the special savings investment scheme; and if he will make a statement on the matter. [14227/01]
As I indicated in the course of discussions on the Finance Bill it is difficult to estimate the Exchequer cost of the special savings incentive scheme because of its very nature, it is new and innovative and the size of the Exchequer contribution will depend on take-up by participants in the scheme. In developing proposals for the Finance Bill provision my Department considered various ranges of costs depending on different assumptions. As I indicated on 20 February in reply to Parliamentary Question reference No. 4725/01 from Deputy Jim Mitchell, a tentative estimate is for a full-year cost of around £100 million for the savings scheme. In so far as the take-up turns out to be very strong, then this figure may have to be revised upward. The more successful the scheme, the more relief it will entail.
As the Deputy is aware, the scheme commenced on 1 May. My Department will be reviewing estimates of the cost of the scheme in the light of experience with it.
