Frank Fahey (Galway West, Fianna Fail)

Regarding the point made by Senators John Paul Phelan and McDowell that the money in the dormant account fund could be used as a slush fund, obviously the Minister for Finance, Deputy McCreevy, has no intention of doing this. The Committee of Public Accounts recommended that the fund be used for charitable and community purposes, which is exactly what is provided for in the Bill. The involvement of the disbursements board is significant in that surplus moneys, subject to the guidelines laid down in the 2001 Act, would be disbursed by the board under the overall policy guidelines given by the Minister for Community, Rural and Gaeltacht Affairs. Obviously, no accusations can be made against the Government about slush funds.

Senator John Paul Phelan was concerned about the impact of the recent losses in the national pensions reserve fund. It is fair to say the National Treasury Management Agency has given excellent service, principally in its capacity as manager of the national debt. The Government has advanced new policy initiatives responding to the changing environment. The agency has shown its ability to build on its core experience and respond quickly to changing demands. The Minister has every confidence in its ability to manage the proceeds from dormant accounts.

The functions of the inspectors are specifically laid out in section 19. Inspections will be conducted as and when necessary, probably for two to three months from May 2004 onwards. Inspectors will have access to the institutions' registers of unclaimed policies for the purpose of carrying out their functions. Their fees will be paid from the reserve account of the dormant accounts fund.