Paul McGrath (Westmeath, Fine Gael)
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Question 351: To ask the Minister for Finance when the SSIA accounts are due to mature; the average contribution which savers have made to the scheme; the minimum and maximum contributors will receive on maturation of the scheme; the costs incurred if you exit the scheme; the number of subscribers nationwide; the cost of the scheme to the Exchequer on a monthly basis; the number of maturing accounts on a monthly basis from May 2006 and the estimated cost to the Exchequer of the top-up payment. [10258/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The SSIA scheme opened on 1 May 2001 and entry to it closed on 30 April 2002. The accounts are due to mature between May 2006 and April 2007.

I am informed by the Revenue Commissioners that all qualifying savings managers are furnishing their 2004 SSIA annual returns at present. The Revenue Commissioners are analysing these returns and it is expected that final details of this analysis will be available at the end of April 2005. However, all qualifying savings managers have, in advance of the annual return, provided a declaration indicating the number of active accounts held at 31 December 2004. Based on these 2004 declarations, I am informed by the Revenue Commissioners that the total number of active accounts at 31 December 2004 was 1,094,188 and the average monthly subscription was €175 at that date. Revisions may be necessary if amendments are received at a later date.

The minimum monthly contribution that could be made to an SSIA on commencement was €12.50. An individual paying this amount over five years would contribute €750 together with the Exchequer tax credit payout of €187.50, that is, 25%. Where an individual saved the maximum monthly amount of €254.00 from the outset the total contribution over five years would be €15,240 as well as the Exchequer tax credit payout of €3,810. Only the profit earned on this investment will be subject to a once-off tax of 23% on maturity provided the individual saver complies with certain conditions laid down in the legislation governing the scheme. Where an individual fails to comply with the conditions of the scheme, or exits the scheme prematurely, all the money in the account is taxed at 23%.

I am informed by the Revenue Commissioners that the monthly tax credit pay-out, made in the month following the month of subscription, to investors in the special savings incentive accounts since the introduction of this savings scheme is as follows:

I am also informed by the Revenue Commissioners that, based on the most recent information available, that is, the return for 2003, the number of SSIAs due to mature in the period May 2006 and April 2007 is as outlined in the table below. These numbers can be expected to reduce marginally between now and the respective maturity dates due to account closures in the interim.

As indicated in replies to previous questions, 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 participants dying, withdrawing from the scheme or varying their monthly contributions. The cost of the scheme to date is as outlined above. The estimated cost in 2005, based on the average tax credit payout in the first three months of 2005, is €572 million but this 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.

Paul McGrath (Westmeath, Fine Gael)
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Question 352: To ask the Minister for Finance if he has plans or proposals for maturing SSIA account holders to reinvest their savings or to encourage citizens to continue to save after the expiration of the SSIA. [10259/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The SSIA scheme opened on 1 May 2001 and entry to it closed on 30 April 2002. The accounts are due to mature between May 2006 and April 2007. A total of 1.17 million accounts were opened during the period outlined.

The specific goal of the SSIA scheme was 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 which is evident in the extensive take-up by many low income earners. The scheme has been a success in those terms. The scheme has a specific duration. Any proposals for tax-based incentives for the reinvestment of SSIA savings or continuation of savings would be considered as part of the normal annual budgetary process taking account of public policy objectives and Exchequer cost implications. The use to which the moneys arising on maturity of the SSIAs are put is ultimately a matter for the individual account holder.