A restriction which forced people to produce identification and proof of address when buying prize bonds has resulted in a slowdown in sales for the state-owned Prize Bond Company.
The company lobbied for the restriction, which was introduced last February, to be lifted. The regulation was scrapped in November.
Sales of prize bonds dropped by just over 6% last year to €126m, according to the company's annual report this morning.
The total amount now invested in prize bonds climbed by 11% to €506.4m, while €11.2m in prizes was paid out, an increase of just under 4% on 2003. Internet sales of prize bonds were up 19% to €3.9m.
Company chairman Michael O'Keeffe said he expected strong growth, with greater awareness of the product and low interest rates in the savings market.
O'Keeffe said on RTE radio this evening that there are different markets for bonds. The first one is the birthdays, christmas and holy communion type market and the second include larger investments such as customers putting their deposit on a house into prize bonds for a few months. He added that people frightened of the unpredictibilty of the equity markets see prize bonds as a safe haven.
The company also said that 7,000 prizes worth more than €1m are still unclaimed. Some of these go back to 1957, the year in which prize bonds started. The company has compiled a booklet listing details of the unclaimed prizes, which will be available in post offices from this week.
Money invested in prize bonds is part of the national debt, and the Prize Bond Company operates the scheme on behalf of the National Treasury Management Agency.
