Jim Higgins (Fine Gael)

I move:

That Seanad Éireann condemns the decision of the Government to undermine the independence of the Dormant Funds Account Board by transferring all decisions on dormant fund disbursements to the Government and noting that the initial proposal for such a fund came from the Public Accounts Committee where it was recommended that moneys be ring-fenced for the most disadvantaged communities within Irish society;

that the Dormant Funds Account Board was established by the Oireachtas by the Dormant Funds Act 2001;

that the Oireachtas gave the board responsibility for decisions on the disbursement of moneys under the fund;

that the Oireachtas decided that the board should be independent in the performance of its functions;

and the comments of the Minister for Finance on 20 June 2001, that the legislation was enacted in this way to prevent the Government having access to a slush fund that Ministers would use to favour pet projects, urgently calls on the Government to reverse this decision.

The Dormant Accounts Bill 2001 was introduced in the Dáil on 20 June 2001. It received universal welcome from all sides of the House. Approximately €150 million of unclaimed bank and building society deposit accounts, together with funds from unclaimed insurance policies, was to be put into a fund to be managed by the National Treasury Management Agency if the accounts were dormant and the owner had not carried out any transaction in respect of the account for a period of not less than 15 years. A new independent board, the Dormant Accounts Fund Disbursements Board, was to be established to disburse the funds. The board would invite applications for funding from charities and from community groups.

One of the most welcome commitments given by the Minister for Finance, Deputy McCreevy, was contained in his summing up on the Second Stage debate in the Dáil when he stated:

The PAC recommended that it [the money] be used for . . . societal and community purposes. To get away from the problem of having the Government blamed for having a slush fund, it has been decided to establish a board of trustees. The board will distribute the money, subject to guidelines and [this is the important thing] without direction from the Government. This will [according to the Minister] get away from the problems of having Ministers accused of favouring pet projects, having the fund as part of general Estimates processes of Departments or having it as part of policy initiatives of Departments. I think this is the best approach.

He further said ". . . the best approach was [one could say "is"] to give the power to distribute it [the money] to a disbursals board and not the Minister". The Minister could not have been more explicit. There would be no Government slush fund. No ministerial hand would touch the funds. To avoid any such taint, any such suspicion or any such allegation, an independent disbursements board would decide on who would benefit from the €150 million.

This Government has had its fair share of U-turns in its 21 months in office. Without doubt, however, the announcement last week that the Government was sidelining the disbursement board and giving full disbursement powers for the €150 million, which I understand is now €175 million, and full discretion over the appointment of the ADM board, a new board appointed by the Minister for Community, Rural and Gaeltacht Affairs, represents the most blatant and shameful of political somersaults.