Dáil Éireann díospóireacht -
Thursday, 6 Nov 2003

Vol. 573 No. 5

Written Answers. - Special Savings Incentive Scheme.

Seán Ryan

Ceist:

17 Mr. S. Ryan asked the Minister for Finance the number of special savings investment scheme accounts opened at the latest date for which figures are available; the average amount of savings per investor per month; if, on the basis of such figures, his Department can give a definite figure for the likely cost to the Exchequer of the special savings investment scheme; if his attention has been drawn to the call made by a person (details supplied) during the recent ESRI budget perspectives conference that action should be taken to prevent cash from maturing SSIAs from flooding the economy in 2006; his plans in this regard; and if he will make a statement on the matter. [25787/03]

Minister for Finance (Mr. McCreevy)

I am informed by the Revenue Commissioners that, based on the 2002 annual returns furnished by all qualifying savings managers, the total number of active accounts at 31 December 2002 was 1,143,418 and the average monthly subscription at that date was €158.00.

It is not possible 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. If the current average monthly payment based on subscriptions to the scheme to 30 September 2003 continues for the full year, the annual cost in 2003 would be approximately €530 million. This, however, is not a conclusive figure, and the final figure may be different than that, if account holders change their monthly contributions.

I am aware of various suggestions made by different commentators on the post SSIA situation. Any such new initiatives would obviously have Exchequer implications and would need to be carefully considered. The specific goal of the SSIA scheme is to encourage people to save over a period of at least five years. Its effect has been to stimulate such savings over varying income ranges and has been used extensively by many low income earners. It has been a success in those terms.