Dáil Éireann - Volume 585 - 06 May, 2004

Written Answers. - Special Savings Incentive Scheme.

  13. Mr. Connaughton asked the Minister for Finance his estimate of the aggregate value of money which will be released from SSIA accounts; the period over which it will be released; and if he has conducted any assessment of its impact on the economy in that period. [12890/04]

  Mr. McCreevy: The SSIA scheme was opened on 1 May 2001 and entry to it closed on 30 April 2002. SSIA accounts must be held for five years from the date of the first subscription in order for the holders to get the full tax benefits. SSIA accounts are due to mature between 31 May 2006 and 30 April 2007.

It is not possible to give an estimate of the aggregate value of money which will be released from the SSIA accounts when they mature as the scheme has still two to three years to run and such aggregate value is also subject to a number of variables such as when participants die, withdraw from the scheme or vary their monthly contributions. In addition, the income or gains arising on the investment over the entire period will depend on whether the investment is in a fixed deposit account or variable deposit account or in equities and what returns these investments will provide over the entire five year period.

As regards the economic impact, my Department is keeping the issue under review in the context of the normal assessment of the economic and budgetary position going forward. Any assessment must take into account that there are a range of uncertainties in any assumptions to be made, in particular whether on SSIA maturity, account holders continue to save the amounts in whole or in part and if not, the use to which these funds will be put.