Written answers

Thursday, 19 May 2005

Department of Community, Rural and Gaeltacht Affairs

Dormant Accounts Fund

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 55: To ask the Minister for Community, Rural and Gaeltacht Affairs the moneys which have to date accrued to his Department from the proceeds of the dormant account fund; the extent of the expenditure to date from this fund; the extent of the funding likely to become available to his Department from dormant insurance accounts; and if he will make a statement on the matter. [16686/05]

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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The Deputy will be aware that decisions on the disbursement of unclaimed moneys from the dormant accounts fund are currently a matter for the Dormant Accounts Fund Disbursements Board. This is an independent statutory body, under the aegis of my Department, established under the Dormant Accounts Acts. The board engaged Area Development Management Limited, ADM, to administer the initial round of funding on its behalf, which involves the disbursement of up to €60 million from the fund.

Disbursements from the dormant accounts fund are for the purpose of assisting three broad categories of persons — those who are economically or socially disadvantaged, those who are educationally disadvantaged and persons with a disability. To date the board has approved 481 projects for funding totalling approximately €55 million, from the initial allocation of €60 million. In accordance with the board's disbursement plan, the bulk of this funding is initially being targeted at those areas designated as most disadvantaged.

To date, the only resources from the dormant accounts fund, which have accrued directly to my Department were in respect of funding for the rural social scheme. In July 2004, following consultation with the board and in accordance with the terms of the Dormant Accounts Act 2001, as amended, €10 million from the fund was transferred to my Department to partly finance the rural social scheme. The rural social scheme provides ongoing income and employment support to small farmers who can no longer make a viable living on the land and is one that fully meets the objectives of the dormant accounts scheme. In the context of the continued rollout of the rural social scheme, I will monitor the direct support provided by the dormant accounts fund and, if necessary, consult with the board about any further allocations from the fund.

The current value of the dormant accounts fund is in the region of €229 million. This figure includes amounts transferred to the fund in 2003 —€196 million, 2004 —€56 million and 2005 —€40.5 million. The €40.5 million transferred in 2005 includes a figure of €7.6 million from dormant insurance accounts.

The Dormant Accounts (Amendment) Bill 2004 completed its passage through both Houses of the Oireachtas last Tuesday, 17 May. The Bill provides for significant changes to the disbursement process and for the establishment of a reconstituted board.

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