Charlie McCreevy (Kildare North, Fianna Fail)
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I am informed by the Revenue Commissioners that the 2003 SSIA annual returns are being furnished by all qualifying savings managers. The closing date for submission of these returns is 28 February 2004. Consequently, the latest date for which figures are available is for the year 2002. Based on these 2002 annual returns furnished by all qualifying savings managers, I am informed by the Revenue Commissioners that the total number of active accounts at 31 December 2002 was 1,143,418 and the average monthly subscription was €158.

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. The cost of the scheme in 2003 was €531.9 million. The estimated cost in 2004 is €540 million. This, however, is not a conclusive figure, and the final figure may be different if account holders change their monthly contributions. The total gross cost over the period of the scheme will be reduced by the exit tax to be received at the end.

The special savings incentive account, SSIA, scheme was designed to be available to as many people as possible. Its success is reflected in the significant number of people who have opened an account. The minimum contribution was set at €12.50 per month, which is approximately €3 per week, in the hope that this would encourage widespread participation in the scheme, including social welfare payment recipients and those on limited incomes.

Based on the analysis of the 2002 returns, the proportion of investors saving at the maximum level was 38% and the proportion at the minimum level was 2%. The monthly subscription levels at 31 December 2001 and 31 December 2002 are as follows:

While available data does not permit all account holders to be matched with income levels, the following are the income levels for SSIA holders who were matched with the Revenue income distribution tables for the tax year 1999-2000. This is the latest tax year available for income distribution.