Phil Hogan (Carlow-Kilkenny, Fine Gael)

I am pleased to have an opportunity to address the House on the subject of RAPID and the position regarding a number of new areas that have been brought into the programme in recent years, including Ballina, as mentioned by the Deputy. As the Deputy knows, since 1 May 2011 I have taken over responsibility for the community dimension.

The RAPID programme was first launched in February 2001 with the aim of prioritising and co-ordinating State assistance in some of the most deprived areas of Ireland. Originally, 25 areas were targeted and this number has now increased to 51, including five provincial towns that were designated new RAPID areas in May 2009. These are, Ballina, Dungarvan, Enniscorthy, Mullingar and Rathkeale.

In December 2009, the previous Government gave approval for disbursements from the Dormant Accounts Fund for a once-off measure up to the value of €1.25 million over 2010-11 for the five new provincial towns incorporated under RAPID. In late December 2010, Pobal, which advertises, appraises and recommends beneficiaries under various dormant accounts measures, submitted recommendations to the Department for the RAPID additionality measure.

In this context, it should be noted that dormant accounts funding is not "free money" to Departments. All Departments have to source the moneys up-front from within their normal allocated Votes to undertake dormant accounts programmes in exactly the same way as any other funding programmes. For that reason, dormant accounts programmes have to be regarded by Government within overall budgetary considerations in the same way as any other funding programme. If a Department's overall Vote is reduced, the scope for undertaking new dormant accounts programmes is, therefore, naturally curtailed.

Income from dormant accounts is not regarded as revenue for the Government. When moneys are spent from the fund, the Government must account for the fact that such moneys could be reclaimed by the account or policyholder in the future, so it is regarded as an accrued liability. This liability is recorded in the general Government debt, GGD, and future disbursements from the fund will also increase the GGD, which must also be taken into consideration by Government given the existing debt levels.

The priority in regard to dormant accounts funding in the current climate must be to ensure that existing contractual commitments can be met. I can confirm that eight projects have been prioritised by Pobal under the RAPID additionality measure for Ballina. These are currently being considered by my Department in the context of the reduced level of funding available in the current year, and also in the context of the review of expenditure that is being undertaken. Any decisions arising will be notified to all applicants as soon as possible. I have discussed with my Department, as recently as this morning, the five towns and the issues associated with funding for these new proposals with a view to making progress thereon. I do not expect to be in a position to make progress on the ambitious programme launched in 2010 but I will be considering the submissions of the towns to see what progress can be made on any aspects thereof. I have asked my Department to expedite the proposals in view of the fact that they relate to disadvantaged areas.

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