Dáil Éireann díospóireacht -
Tuesday, 23 Apr 2002

Vol. 552 No. 3

Written Answers. - Special Savings Incentive Scheme.

Emmet Stagg

Ceist:

54 Mr. Stagg asked the Minister for Finance the numbers of applications received for the special savings incentive scheme at the latest date for which figures are available; if, on the basis of such figures, his Department has an assessment of the likely cost to the Exchequer of the special savings incentive scheme; and if he will make a statement on the matter. [12417/02]

Minister for Finance (Mr. McCreevy)

I have been informed by the Revenue Commissioners that the annual returns from the qualifying savings managers, which give the number of accounts opened by each institution at 31 December 2001, are still being processed but the indications are that the number of special savings incentive accounts opened as of 31 December 2001 is in the region of 380,000. I understand that there has been considerable activity in the market place in recent weeks in relation to the special savings incentive accounts and the indications are that the number of accounts opened by 30 April will have increased considerably by that date.

Of course, the cost of the scheme does not depend solely on the number of accounts but also on the amount deposited. As I have indicated before in replying to Dáil questions regarding,inter alia, the likely cost of the scheme, it is diffi cult to estimate the Exchequer cost of the special savings incentive scheme because of its very nature. The size of the Exchequer contribution will depend on the eventual take-up by participants in the scheme. The cost to the Exchequer from May 2001 to end March 2002 is €154 million suggesting a potential full year cost of around €300 million. However, it should be noted that the figure for March included in this total is preliminary and the April figure is not yet available. The closing date for participation in the scheme is 30 April and my Department will be assessing the potential cost of the scheme in the light of the information that will be available in the middle of May.