Written answers

Wednesday, 3 November 2010

Department of Community, Rural and Gaeltacht Affairs

Dormant Accounts Fund

9:00 pm

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 68: To ask the Minister for Community, Equality and Gaeltacht Affairs the funding available to communities through the dormant accounts; and if he will make a statement on the matter. [39282/10]

Photo of Pat CareyPat 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 2005 Act - 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.

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, which recommended the abolition of the Dormant Accounts Board - the Government has approved the Heads of a Bill that will dissolve the Dormant Accounts Board 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. As soon as the legislation is enacted, I would envisage presenting a new Disbursement Plan to Government for its consideration. 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 .

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