Dáil debates
Thursday, 24 February 2005
Dormant Accounts (Amendment) Bill 2004 [Seanad]: Second Stage (Resumed).
11:00 am
Pat Carey (Dublin North West, Fianna Fail)
I welcome the opportunity to speak on the legislation before the House, which is concerned with streamlining an important process, namely, the disbursement of the dormant accounts fund. To understand the importance and relevance of the Bill, one must consider the areas to which these funds are being allocated and the impact they are having.
The purpose of the dormant accounts fund, as set out in current law, is to assist persons who are socially, economically and educationally disadvantaged and persons with a disability. All Deputies welcome the use of unclaimed moneys for the betterment of the less well-off. While we all talk about major economic progress, regardless of how much progress is made, there will always be people who seem to fall between the cracks. This money is ideal for use in this regard, a position that will remain unchanged in the new Act.
To date the dormant accounts fund has had a significant impact in many communities, including mine, and it is right that such work on behalf of the public good be continued. Nevertheless, it is always possible to do more, not only by increasing the amount spent on programmes and projects, which the Government has already done. Rather, for numerous reasons connected with governance and public policy, organisational changes are required to ensure the money in the dormant accounts achieve maximum benefit and impact on communities.
We are all aware of the emerging scale of the fund, which currently stands at €250 million. We are all agreed that the scale of such moneys, held in public trust, requires commensurate arrangements to support and oversee disbursements. However, when the original legislation was introduced it was not envisaged that the fund would be so large. Current legislation in this area is fundamentally deficient in terms of governance structures and organisational arrangements. For example, it makes no legal provision for a proper organisational structure for the board and, instead, provides only for an ad hoc arrangement for the secondment of staff from Departments. Given the emerging scale of the fund, such an arrangement is not tenable in the longer term.
Furthermore, current arrangements require a part-time chairperson of the board to assume responsibility for disbursement decisions with a potential spend in excess of €250 million and to be held accountable to the public by the Committee of Public Accounts for all the board's decisions. That is wholly inappropriate.
Questions also arise from a public policy point of view. We are all serious about tackling severe disadvantage so it follows that the State must use all resources available to it for this purpose in a focused and sustained manner. It is doubtful whether current arrangements for these funds can secure the optimal effect in this regard.
Members of the Opposition may argue that the reasons I have outlined would suggest that a new organisation should be established with a permanent administrative support structure. I am not convinced of the merit of such a move as it would ignore the finite nature of the fund, squander significant funds on organisational costs and, crucially, overlook the expertise and knowledge available in public bodies in regard to tackling disadvantage in our communities. That is, after all, our purpose.
The general basis of the legislation is broadly similar to the administration of the sports grant scheme. Irrespective of who makes the final decision, the Government will ensure that grants to the determinative communities will be systematised and codified. I do not want the dormant accounts fund to be viewed simply as an extension of departmental programmes or another part of public expenditure. It offers an exciting new opportunity, especially for those involved in voluntary community groups who are tackling social exclusion.
While I want the voluntary and community sector to have some sense of ownership in this matter, it is necessary to ensure the funds are equitably distributed on the basis of need and that is provided for in the legislation. The purpose of the Bill is to strengthen the link and co-operation between Government and the community sector. The thrust of the proposed legislation is concern with the need for the Government to take responsibility for implementing the strategies for which it is elected. This is precisely what the Bill proposes.
The job of Deputies is to make representations on behalf of constituents, follow up on cases and hearings and ensure that those whom we represent get their fair share. We have an opportunity to inquire into the work of all Departments. The proposed legislation strengthens this system, thus ensuring that we can secure more for our communities.
I realise the legislation governing the dormant accounts fund and its board has only been in place for a few years. If problems arise, however, it is important to address them as soon as possible. After all, it is the responsibility of the Government to make appropriate changes and use proper procedures for so doing. The proposed system will be seen to be fair and transparent and will take on board expertise on disadvantage and disability, in Departments, the Health Service Executive, previously health boards, and other State agencies.
The Bill takes timely steps to rectify imminent problems which, if not tackled now, would get worse in the future. If the scale of the fund continues to increase, we will have further reason to stabilise and structure the system of allocating funds and developing a more accountable process. The proposed legislation introduces the more accountable process we all seek.
When one observes the effects of the dormant accounts fund on the various schemes and considers similar previous schemes, it is clear that areas of particular disadvantage have benefited significantly. Communities have benefited on the ground, particularly in areas designated under the RAPID and CLÁR programmes. If we spent substantial sums administering these schemes, I would have to tell constituents, for example, parents seeking a playground so that their children do not have to play on busy roads, that the money was spent on administration. I am not prepared to do that and, therefore, it makes sense to deal with the fund by means of administrative arrangements already in place in Departments. Such a system has worked well with the national lottery allocations to those entitled to lottery funding. The arrangements proposed in the Bill demonstrate the Government's commitment to a structured, transparent and effective system of funding for all voluntary and community groups. I congratulate the Minister on the Bill and welcome it to the House.
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