Insurers and brokers are stepping up pressure on the Government to establish a follow-up to the Special Savings Incentive Accounts (SSIAs) scheme as part of December's budget.

The Irish Insurance Federation (IIF) is expected to lead the campaign by contacting the new Minister for Finance on the matter immediately after the forthcoming cabinet reshuffle.

IIF corporate affairs manager Mr Niall Doyle, who proposes that SSIAs should be followed by Government-sponsored pensions for children, has already discussed the matter with several Government ministers.

Having received a positive response, he is now seeking to build consensus with the social partners on the matter. Mr Doyle is hopeful that his idea will be promoted in the pre-budget submissions of organisations such as IBEC and ICTU.

The issue of dealing with the economic wake of SSIAs gained momentum this week when a new study by Goodbody Stockbrokers estimated that €14 billion in cash would spill into the economy when the accounts mature between 2006 and 2007.

Goodbody reckons that about €5 billion of this will be spent rather than saved.

The Professional Insurance Brokers Association (PIBA) warned yesterday of a "cash bonanza" being squandered if the Government did not intervene.

The association has asked the Pensions Board to consider recommending that tax relief at the standard rate should be available on SSIA funds invested directly in pensions at maturity.

PIBA also advises that the Government should reward account-holders who place their funds in pensions by continuing to pay the 25 per cent SSIA top up for one more year after maturity.

Mr Doyle of the IIF believes that the low incidence of pensions coverage among Irish people could be addressed if the Government opened a pension account for each of the 1.1 million children in the Republic on the day the SSIA scheme closes.

Under his proposal, the Government would then deposit €10 into the pension every month until the child reaches 18. A sponsor could also contribute up to €50 each month.

At age 18, the fund would pass to the child. Seven years later, they would be able to withdraw a quarter of the fund tax-free, provided they had contributed 5 per cent of any income they had been earning in the interim.