Ciarán Lynch (Cork South Central, Labour)
Link to this: Individually | In context

Question 365: To ask the Minister for Community, Equality and Gaeltacht Affairs further to parliamentary Question No. 561 of 2 November 2010, the measures being put in place to ensure the equity of the distribution of dormant account funds in the event of the dissolution of the Dormant Accounts Board; if he will provide a breakdown of the €1.5 million expenditure incurred by Pobal in administering the dormant accounts on top of the approximate €200,000 incurred by DAB; if moneys collected from dormant accounts are classified as revenue; and if he will make a statement on the matter. [45900/10]

Pat Carey (Dublin North West, Fianna Fail)
Link to this: Individually | In context

It is the Government's intention, given the unique nature of the Dormant Accounts Fund, that strong oversight and transparency in relation to disbursements from the Fund will be maintained in the new legislation currently being drafted. The approach under consideration would seek to afford the Oireachtas a specific oversight role in that context and the detail of such arrangements is under discussion with the Office of the Attorney General at present.

Pobal is contracted to administer a number of Dormant Accounts schemes - and indeed other funding programmes - on behalf of various Government Departments, including my own. In the case of Dormant Accounts, Pobal's role is extensive and involves the following: · the advertisement and management of the application process; · the assessment of applications under agreed criteria; · making appropriate recommendations to Departments/Ministers; · agreeing contracts with successful applicants; · ongoing monitoring of projects to completion; and

· making payments to projects as they progress in accordance with the terms of their contracts.

I understand that some 16 Pobal staff work in the provision of these services for all of the Departments which promote measures financed from the Dormant Accounts Fund. I am advised that salaries and associated staff costs would account for a significant proportion of the expenditure of €1.5m referred to by the Deputy.

As regards the status of Dormant Accounts funding, income from dormant accounts is not regarded as revenue for the Government under the European System of Accounting. In addition, where allocations are made from the Fund in accordance with the terms of the existing legislation, the Government must account for the fact that such monies could be reclaimed in the future, so it is regarded as an accrued liability. This liability is recorded in the General Government Debt (GGD) and future disbursements from the Fund will also increase the GGD.