Written answers
Wednesday, 30 January 2008
Department of Community, Rural and Gaeltacht Affairs
Dormant Accounts Fund
8:00 pm
James Bannon (Longford-Westmeath, Fine Gael)
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Question 774: To ask the Minister for Community, Rural and Gaeltacht Affairs the position regarding the distribution of the Dormant Accounts Funds and the number of unclaimed bank accounts, building society accounts and life insurance policies; and if he will make a statement on the matter. [1269/08]
Pat Carey (Dublin North West, Fianna Fail)
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The gross value of the Dormant Accounts Fund at 31 December 2007 was approximately €205 million and when account is taken of outstanding liabilities, the net value of the Fund was €104 million. The liabilities relate to approved funding that has yet to be drawn down. The attached summary table provides a profile of the Fund showing yearly inflows, reclaims, disbursements etc. from 2003 to 2007. This table is available on my Department's website (www.pobail.ie) and is updated regularly.
In relation to the numbers of unclaimed accounts etc., the Deputy will be aware that under the legislation, credit institutions and insurance undertakings are required, each April, to transfer to the National Treasury Management Agency (NTMA), all moneys falling dormant in the previous year. The NTMA, who are responsible for managing the Dormant Accounts Fund, advises that on 31st December 2007, there were 2.2 million unclaimed bank, building society and Post Office Savings Bank accounts and 1.1 million unclaimed life assurance policies. In addition, there was €4.4 million in the Fund from the Escheated Estate Fund.
Dormant Accounts Fund (Summary Table — 31 December 2007)
The dormant accounts scheme provides for an annual transfer of monies in dormant accounts to the Dormant Accounts Fund (operated and managed by the National Treasury Management Agency — NTMA). The table below profiles the Fund at the end of December 2007. It shows yearly inflows; interest earned; reclaims; disbursements; and administrative expenses. The gross value of the Fund at the end of December 2007 was approximately €205 million and when account is taken of outstanding liabilities, the net value of the Fund was approximately €104 million.
| 2003 | 2004 | 2005 | 2006 | 2007 | Totals | |
| € | € | € | € | € | € | |
| 1. Inflows | ||||||
| Transferred | 196,209,141 | 56,024,667 | 40,815,461 | 80,149,282 | 66,295,662 | 439,494,213 |
| bnks/bldg societies | 105,802,747 | 18,387,604 | 13,049,089 | 20,535,464 | 12,531,434 | 170,306,338 |
| An Post products | 90,406,394 | 14,642,260 | 19,870,684 | 52,513,242 | 42,660,018 | 220,092,598 |
| Insurance products | 22,994,803 | 7,895,688 | 7,100,576 | 6,704,210 | 44,695,277 | |
| Intestate Estates | 4,400,000 | 4,400,000 | ||||
| Interest | 2,778,039 | 3,802,846 | 4,061,302 | 6,382,021 | 8,796,300 | 25,820,508 |
| Sub-Total | 198,987,180 | 59,827,513 | 44,876,763 | 86,531,303 | 75,091,962 | *465,314,721 |
| 2. Outgoings (to Date) | ||||||
| Reclaimed | 24,002,874 | 21,080,853 | 22,916,079 | 44,599,905 | 33,900,204 | 146,499,915 |
| Disbursements | 14,000,000 | 14,400,000 | 33,250,000 | 45,511,412 | 107,161,412 | |
| Admin Expenses | 148,048 | 1,055,958 | 1,592,714 | 1,433,356 | 1,881,137 | 6,111,213 |
| Compliance Expenses | 80,783 | 175,000 | 255,783 | |||
| Sub-Total | 24,150,922 | 36,136,811 | 38,989,576 | 79,458,261 | 81,292,753 | **260,028,323 |
| 3. Gross / Net Fund Values | ||||||
| Overall Gross Value | ***205,286,398 | |||||
| Existing Liabilities on Fund: | ||||||
| (a) Grants approved by former Dormant Accounts Board yet to be drawn down; | 19,244,052 | |||||
| (b) Government approvals for 2006 yet to be drawn down; | 44,333,036 | |||||
| (c) Government Allocations for 2007 yet to be drawn down; | 30,000,000 | |||||
| (d) Allocation approved for Early Childhood Initiative yet to be drawn down; | 7,661,500 | |||||
| Liabilities Sub-Total | 101,238,588 | |||||
| Overall Net Value | ****104,047,810 | |||||
| * Sum of yearly inflows together with interest earned. | ||||||
| ** Sum of reclaims, disbursements and administrative expenses. | ||||||
| ***Gross Fund balance — inflows less outgoings. | ||||||
| ****Net balance — gross total less liabilities. |
The NTMA is obliged to maintain a percentage of the Fund in a Reserve Account to meet reclaims and to cover expenses. The reserve is currently set at 15% of the total moneys received by the Fund and not yet reclaimed.
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