The total number of investors who had subscribed to the special savings incentive account scheme on the closing date of 30 April 2002 was 1,170,208. The average monthly contribution per investor is approximately €150.
It is impossible to give a definitive answer as to the eventual cost of the scheme as it is subject to a number of variables such as where participants die, withdraw from the scheme or vary their monthly contributions. Using the existing data and assuming that these variations will broadly cancel each other out, it is estimated that the full year cost to the Exchequer will be in the region of €525 million.
I introduced the SSIA scheme last year for a specific reason, and that was to encourage people to save. I said when it was introduced that the cost would depend on its success. I have on numerous occasions made it clear that I see the widespread and popular participation in this scheme as a vindication of the principle.
I would point out that the financial penalty referred to by the Deputy is an exit tax on funds withdrawn by savers from special savings incentive accounts before they mature and is consistent with the purpose of SSIAs which is to encourage regular saving. The purpose of the exit tax, as I indicated at the time the scheme was introduced, is to ‘claw back' the Exchequer contribution of 25%.
As the Deputy is aware and as I stated on previous occasions, I have no plans to abolish the scheme.
