Dáil debates

Wednesday, 30 November 2005

Priority Questions.

Dormant Accounts Fund.

1:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 48: To ask the Minister for Community, Rural and Gaeltacht Affairs the amount of money at present lodged to the dormant accounts fund; when it is proposed to advertise for applications for grant aid under the fund; when the next allocation of grants will be made; and if he will make a statement on the matter. [37009/05]

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Adjusted for liabilities of €48 million, the current value of the dormant accounts fund is €157 million. Such liabilities arise in respect of funding approved for projects by the Dormant Accounts Fund Disbursements Board which has yet to be drawn down. It is anticipated that a large element of this amount will be disbursed during 2006.

With regard to further allocations, the Deputy will be aware that the Dormant Accounts (Amendment) Act 2005 provides for significant changes in the disbursement of funds from dormant accounts and for a reconstituted board. The Act was commenced on 1 September 2005. Under this new legislation, the Minister is required to consult appropriate Ministers for the purpose of developing a proposal for submission to Government for approval. This proposal will include the programmes and types of projects for which applications for disbursements will be invited, as well as the criteria to be applied in assessing applications made in response to the invitation.

Yesterday the Government approved proposals for projects and programmes to address the social and economic disadvantage category under the next round of funding. The Minister will make a further announcement shortly when the details and operational procedures are finalised. The consultation process on proposals under the other two categories, education disadvantage and disability, is not yet finalised and the Minister hopes to be in a position to make proposals to Government under these two headings fairly soon.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Does the Minister of State agree that this so-called consultation process is a stalling device to ensure that allocations from the dormant accounts fund will be announced at the time most advantageous to the Government parties before the forthcoming general election? Does he further agree that this so-called consultation process is nothing more than the Minister and his Cabinet colleagues ensuring that this slush fund, which is what the Government has made of the fund, is used to maximise votes in the forthcoming general election?

Did I understand the Minister of State correctly that it is hoped that moneys which have not yet been drawn down from allocations made by the Dormant Accounts Fund Disbursements Board will be drawn down by the end of next year? Does that mean my suspicions are correct, that no further allocations will be made in 2006 and, effectively, the considerable resources of the fund, which the Government has converted into a slush fund, will be available to buy votes before the next general election?

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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No, what I stated earlier was that, of the allocations made to date by the board, €48 million has not yet been drawn down. A sum of €8 million is the only amount that has been drawn down. As Deputy O'Shea will be aware, ADM Limited administers all this for the disbursements board. Of the €63 million that was allocated, to date €8 million has been drawn down. It is a case of working out the legal agreements etc. However, one would expect that the figure drawn down would be increased significantly, and most of that will be disbursed next year. All the money is provided and allocated. While there is €205 million in the fund at present, deducting the liabilities of €48 million leaves €157 million.

There is no stalling. Matters have proceeded rapidly since the new legislation came into place. The consultation process — I was on one of the committees — involves representatives from approximately six Departments. There have been at least four or five meetings of that cross-departmental group. The only elected representatives at those meetings were the Minister and me. The rest of the participants were officials.

The committee on social and economic disadvantage has completed its work and sent its report to Cabinet. It is hoped that the other two committees — I am not on either of them — on disability and educational disadvantage, will complete their reports and send them to Cabinet fairly soon. Then matters will progress quickly in the new year.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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I heard what the Minister of State said, but everything must be approved by Cabinet. That was the corrupt element brought into this, that where once there was an independent board, now the Government will decide. The Minister of State can put all the window dressing he likes around this, but at the end of the day it is the Cabinet, not the civil servants, advisers or whoever, that will make all the decisions.

The Minister of State has not confirmed to me when it is proposed that the next advertisement will be placed seeking applications and when, subsequently, it is proposed that allocations will be made. Nothing he stated disabuses me of the idea that we are looking at a slush fund. The Minister can grin and laugh all he likes, but let us come back here in a year and see what exactly has happened.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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We will.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Can the Minister assure me that it will not be used as a slush fund?

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Yes, absolutely.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Will the Minister give me the information I seek, that is, when it is proposed to advertise a new competition and when it is proposed to make allocations?

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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Deputy O'Shea would want to be joking.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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As I stated, the social and economic disadvantage committee is one of the three committees — there are three interdepartmental committees.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Will the Minister of State advertise for that soon?

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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That report has gone to Cabinet. We are working on the details of the operational procedures of how we will roll that out. We only got approval from the Cabinet yesterday and it will be rolled out quickly. Deputy O'Shea will see all that in January or February next.

It will not necessarily be one large catch-all advertisement in the newspaper. We will bring forward a number of proposals. We will give much attention to RAPID programme areas and there will be a number of other programmes and projects very much centred on disadvantaged youth, older persons and other priority groups such as immigrant families and ex-offenders. It will not involve one massive advertisement in the newspaper. As there are different categories, we will focus on the different agreements. In January or February, Deputy O'Shea will see evidence of where groups will be invited to apply.