Dáil Éireann díospóireacht -
Wednesday, 9 Oct 2002

Vol. 554 No. 5

Written Answers. - Special Savings Incentive Scheme.

Paul McGrath

Ceist:

424 Mr. P. McGrath asked the Minister for Finance the total number of investors who subscribed to the SSIA since its inception; the total amount invested in the first year of the scheme; the total cost of the scheme to the Exchequer for the first year; the expected number of investments and total invested on a monthly basis to date in the second year of the scheme; the expected annual cost to the Exchequer of this scheme; and if he is legally committed to continuing this scheme for its five year duration. [16460/02]

Minister of State at the Department of Finance (Mr. Parlor):

The total number of investors who had subscribed to the SSIA scheme on the closing date of 30 April 2002 was 1,170,208. The scheme commenced on 1 May 2001 and the total amount invested in the year ended 30 April 2002 was €796 million. The Exchequer contribution in respect of each month is paid in the following month on the basis of amounts claimed by the qualified savings managers concerned. On this basis, the Exchequer contribution paid in respect of this period was €197.8 million.

The total invested and the net Exchequer contribution arising on a monthly basis since 1 May 2002 is as follows:

	Subscriptions	Net Exchequer contribution*
	€	€
May 2002	178.6 million	44.4 million
June 2002	175.1 million	43.5 million
July 2002	178.3 million	44.1 million
August 2002	176.2 million	43.6 million

*The net amount is less tax on any ceased accounts. The contribution is paid in the month following the subscription, for example, the August 2002 contribution is paid in September 2002.

The expected cost to the Exchequer in 2002 is of the order of €435 million on the basis that the level of investment in the most recent month for which figures are available broadly continues. As the scheme did not close until the end of April and more new accounts were being opened in the first four months of this year, the full year cost will be greater than the 2002 cost. The expected full year cost is of the order of €525 million. The cost of the scheme is affected where participants die, withdraw from the scheme or vary their monthly contributions. The expected costs provided above assume that these variations will broadly cancel each other out.

The question of whether there is a legal commitment does not arise as it is my intention that the scheme will continue.