Frances Fitzgerald (Dublin Mid West, Fine Gael)
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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 February 2011, the transfers to the DAF have totalled some €589m, which includes interest earned of some €35m. Funds reclaimed in that period by account holders amounted to approximately €208m.

Allocations from the DAF - in accordance with Part 6 of the Dormant Accounts (Amendment) 2005 Act - are focussed on programmes or projects to assist: - the personal and social development of persons who are economically or socially disadvantaged; - the educational development of persons who are educationally disadvantaged; or - persons with a disability. The value of the DAF at the end of February 2011, net of liabilities, was some €52.5m. This figure excludes €49.4m maintained in a Reserve Account to meet future reclaims by account holders and to cover expenses associated with the operation of the DAF. A summary of the status of the DAF is available on my Department's website at www.pobail.ie and I am arranging for a copy to be sent to the Deputy in the coming days.

With regard to the question of ring-fencing moneys from the Fund, the Deputy will appreciate that given its focus, as set down in the legislation, a significant proportion of the funding disbursed to date from the DAF is already channelled through community and voluntary groups under the existing arrangements. This is in addition to the other substantial supports provided by my Department to that sector annually through other programmes and schemes.

The intention has always been to ensure that there is a broad and balanced range of potential beneficiaries from dormant accounts disbursements. I believe that this should continue into the future, rather than focussing on any particular sector. In any event, given the reduced levels of funding available for disbursement from the DAF, ring-fencing annually the amount suggested by the Deputy would not be feasible.

In this context, it should also be noted that, in the light, inter alia, of the reduced levels of funding available, proposals had been under consideration by the previous administration to dissolve the Dormant Accounts Board and to make appropriate arrangements for the transfer of its functions to my Department. I anticipate that this, and related matters relating to future disbursements, will be considered by Government in the near future.

Finally, the Deputy should note that moneys disbursed from the Fund increase Government debt levels as the money belongs to the account holder, who can reclaim it at any time, and not to the State. Consequently, every euro spent from the Fund is regarded in accounting terms as a potential Government liability. In the current fiscal climate, our priority, therefore, must be to ensure that funding is targeted on a needs basis and spent efficiently and effectively. This is the Government's intention in the context of dormant accounts disbursements and in the case of supports for the community and voluntary more generally.