On the basis of the first monthly returns made by the qualifying savings managers under the new savings scheme, the total tax credits claimed by the institutions amount to some £1.5 million in respect of deposits of £6 million in the month of May. Details of the number of accounts involved will not become available until the first annual return due under the scheme is made by the savings managers on or before 28 February 2002. As I indicated recently when replying to a parliamentary question from Deputy Howlin regarding the likely cost of the scheme, 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 provisions my Department considered various ranges of costs depending on different assumptions. As I said on February 20th in reply to Dáil Question No. 36 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 is, the more relief it will entail.
It is not possible to extrapolate from the figures available to date what a more likely cost to the Exchequer of the SSIA scheme will be. It is anticipated, however, that the June returns will show an increase on the May figures.