Ciarán Lynch (Cork South Central, Labour)
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Question 561: To ask the Minister for Community, Equality and Gaeltacht Affairs the current value of moneys available for distribution from the dormant accounts fund; the principles that apply to the disbursement of this fund; if he will provide a breakdown of the annual expenses of €1.7 million incurred by the dormant accounts board; and if he will make a statement on the matter. [40207/10]

Pat Carey (Dublin North West, Fianna Fail)
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The Dormant Accounts Acts provide for an annual transfer by credit institutions and insurance undertakings of monies in accounts determined to be dormant into the Dormant Accounts Fund (DAF). Since its establishment in April 2003, to the end of September 2010, the transfers to the DAF have totalled some €587.5m, which includes interest earned of some €34.4m. Funds reclaimed in that period by account holders amounted to approximately €202m.

Allocations from the DAF - in accordance with Part 6 of the Acts, as amended by the Dormant Accounts (Amendment) Act 2005 - are focussed on programmes or projects to assist:

1. the personal and social development of persons who are economically or socially disadvantaged;

2. the educational development of persons who are educationally disadvantaged; or

3. persons with a disability.

The value of the DAF at the end of September 2010, net of liabilities, was some €62.4m. This figure excludes €44.4m maintained in a Reserve Account to meet future reclaims by account holders and to cover expenses associated with the operation of the DAF. Further details of projects to which funding has been allocated to date and a summary of the status of the DAF are available on my Department's website at www.pobail.ie/en/DormantAccounts .

As regards the annual expenses of the Dormant Accounts Board (DAB), the figure of €1.7m referred to by the Deputy is presumably the 2009 outturn for Dormant Accounts Administration (Subhead B.6 of my Department's Vote). This expenditure covered Pobal's administration fee for administering the various Dormant Accounts measures across all Government Departments, as well as the administrative budget for the DAB itself. That administrative budget amounted to €210,465, broken down as follows:

*Includes travel and subsistence of €2,499 and meeting costs of €1,380.

The 2009 figure compares with a corresponding figure of €199,907 for 2008 and €226,177 for 2007.

I would like to add that, in light of the reduced level of funds available for disbursement from the Dormant Accounts Fund - and against the background of the Report of the Special Group on Public Service Numbers and Expenditure Programmes - the Government has approved the Heads of a Bill that will dissolve the DAB and make appropriate arrangements for the transfer of its functions to my Department. Drafting of the Bill has commenced and I anticipate that it should be published during the current parliamentary session.

Even though the Board is to be dissolved, and there are likely to be savings in the region of €200,000 per annum as a consequence, the Deputy will appreciate that there will still be costs involved in the day-to-day administration of the various Dormant Accounts measures, which require appropriate management and oversight arrangements, particularly given the unique nature of the funds in question.