Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 40: To ask the Minister for Social Protection if she will amend the means test rules for disability allowance and secondary payments to extend eligibility for these to wards of the courts whose funds were depleted at an exceptional rate during the period of 2007 to 2009 while under the care of the State as to do so will go some way towards compensating the wards for the loss of units which cannot be recovered and which was outside of their control. [10538/11]

Joan Burton (Dublin West, Labour)
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In determining entitlement to disability allowance, the social welfare code provides that the first €50,000 of capital is disregarded in the means assessment. Thereafter, weekly means are assessed at €1 per week for each €1,000 of capital between €50,000 and €60,000; at €2 per week for each €1,000 of capital between €60,000 and €70,000 and at €4 per week for each €1,000 of capital above €70,000. These arrangements are more generous than those which apply to other social assistance schemes in recognition of the fact that persons in receipt of disability allowance may not have had the opportunity to accumulate savings or other income through participation in employment and this disability may hamper a person's ability to live independently.

The Deputy will be aware that funds which are held for the benefit of wards of court are private funds under the control of the Courts Service. These funds, which amounted to approximately €1.137 billion at 30 September 2010, are managed in a fiduciary capacity by the Courts Service on behalf of more than 18,000 beneficiaries, of whom some 2,300 are wards of court. It is my understanding that while court funds were impacted by the turbulence on world financial markets, particularly in 2008, very few actual losses were incurred in individual cases and that all funds have fully recovered to pre-financial crisis levels.

Where the position of an individual has been impacted upon, it is open to that person, or his or her representatives, to apply for disability allowance or to have the level of payment reviewed in cases where he or she is already in receipt of the allowance.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Wards of court are, by definition, vulnerable and the State owes them an enhanced duty of care. The State, through the Courts Service, is responsible for the administration and investment of funds which many wards of court depend on for their living expenses. The fund is not a realisable asset in the sense of a means test. At the beginning of the economic downturn these funds lost significant value and consequently the length of duration of the award. Considering their special status and the State's responsibility to them, I have asked the Minister for Justice and Equality to compensate the wards of court for these losses in an effective manner. He has denied that the loss exists.

The Minister, Deputy Burton, has repeated that denial to some degree by claiming that the value of all funds has since recovered. That is a misrepresentation of the facts, however, because units of the funds need to be sold when money is needed to make payments to wards of court. When the value of the funds decreased between 2007 and 2009, there was a dramatic increase in the number of units that had to be sold to generate the same income. That diminished the number of units in the funds at an exceptional rate and prohibited true recovery. As a result, the funds cannot possibly provide for wards of court for the duration that was originally intended.

While I accept the Minister for Justice and Equality is directly responsible, I ask the Minister, Deputy Burton, to intervene by making a compensatory gesture to the adult wards of court on behalf of the State. I suggest she should make a disability payment available to them from now on. Such a payment would supplement and stretch their funds and thereby ensure they last for the intended period of time.

There is a precedent for looking for exceptions in means test rules. For example, compensation and awards, and the income arising from the investment of such moneys, are not taken into account when people in certain groups are means tested. I refer, for example, to those who contracted hepatitis C or HIV from blood products, to those with a disability arising from the thalidomide disaster, or to those who received awards from the Residential Institutions Redress Board. I ask the Minister to consider making a similar exception in the case of wards of court to compensate them on their losses. As such a measure would affect a small number of people, a major cost would not accrue to the State.

Joan Burton (Dublin West, Labour)
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Court funds that are held for the benefit of wards of court are private funds under the control of the Courts Service. Through its offices in the High, District and Circuit Courts, the service has responsibility for the management and investment of funds in court. The courts are subject only to the Constitution and the law and are independent in the exercise of their judicial functions. It is not open to me as Minister to comment in any way on the operation of the courts. However, I want to point out that the Courts Service operates a fairly conservative investment policy. Despite the impact of the credit crisis, all funds have fully recovered to their levels before the financial crisis.

I reiterate that if a ward of court wishes to apply to the Department of Social Protection, he or she is welcome to do so. If a ward of court is at a financial loss and consequently qualifies for a higher rate of payment - or if he or she qualifies for disability allowance for the first time because his or her means have been reduced - the appropriate level of disability allowance will be paid to him or her. My Department is responsible for that aspect of the matter. As the Deputy will appreciate, the courts themselves are independent in the operation of their functions.