Written answers
Tuesday, 4 October 2005
Department of Finance
Special Savings Incentive Scheme
9:00 pm
Paul McGrath (Westmeath, Fine Gael)
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Question 301: To ask the Minister for Finance if he will indicate the current number of investors, the average amount saved monthly and the monthly cost to the Exchequer for SSIA's since the scheme commenced. [26602/05]
Paul McGrath (Westmeath, Fine Gael)
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Question 302: To ask the Minister for Finance the estimated cost to the Exchequer of the SSIA scheme through to completion and the estimated total amount invested in this scheme through to completion. [26603/05]
Paul McGrath (Westmeath, Fine Gael)
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Question 303: To ask the Minister for Finance the amount available to SSIA account holders on a monthly basis from May 2006 on maturing accounts until the completion of this scheme. [26604/05]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 301 to 303, inclusive, together.
I am informed by the Revenue Commissioners that the latest figure of the total number of active SSIA accounts, based on the SSIA annual returns by all qualifying savings managers, is at 31 December 2004. This figure was 1,094,294. The average monthly subscription at that date was €175.
The monthly cost to the Exchequer for SSIAs since the scheme commenced is set out in the following table:
| Claims | |||||||||||||
| Year | Month | ||||||||||||
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Total | |
| 2001 | — | — | — | — | — | 2.0 | 6.1 | 9.1 | 11.0 | 12.6 | 14.2 | 16.0 | 71.0 |
| 2002 | 17.8 | 19.3 | 21.0 | 25.6 | 43.1 | 44.4 | 43.5 | 44.1 | 43.6 | 43.6 | 43.5 | 43.5 | 433.0 |
| 2003 | 44.4 | 44.8 | 44.1 | 44.0 | 44.2 | 44.0 | 44.3 | 44.3 | 44.1 | 44.9 | 44.8 | 44.0 | 531.9 |
| 2004 | 45.2 | 44.8 | 44.2 | 45.6 | 45.1 | 45.8 | 46.0 | 45.3 | 46.3 | 46.3 | 46.4 | 47.0 | 548.0 |
| 2005 | 47.0 | 47.9 | 48.1 | 48.8 | 48.5 | 50.3 | 50.3 | 50.4 | — | — | — | — | 391.4 |
The total amount invested in the scheme since its commencement, according to Revenue Commissioners data, is set out in the following table.
| Period | Subscriptions |
| â'¬ million | |
| May-December 2001 | 356.6 |
| January- December 2002 | 1,859.3 |
| January-December 2003 | 2,187.3 |
| January-December 2004 | 2,264.8 |
| January-July 2005 | 1,408.3 |
| Total | 8,076.3 |
It is not possible to give a definitive answer as to the eventual cost of the scheme and the total estimated amount invested in 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 Exchequer 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 eight months of 2005, is €587 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. For these reasons, together with the fact that any gains arising is a matter for the relevant financial institution, it is not possible to estimate the total amount of subscriptions upon completion of the scheme and the amount available to SSIA holders on maturity.
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