Written answers
Tuesday, 19 April 2011
Department of Community, Rural and Gaeltacht Affairs
Dormant Accounts Fund
8:00 pm
Pearse Doherty (Donegal South West, Sinn Fein)
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Question 288: To ask the Minister for Community, Equality and Gaeltacht Affairs the intended use of the dormant accounts fund; the persons who oversee the fund; the current figure for the amount held in the fund; the reason no money been spent since 2008; and if she will make a statement on the matter. [8264/11]
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 â¬589m, which includes interest earned of some â¬35m. Funds reclaimed in that period by account holders amounted to approximately â¬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: 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 February 2011, net of liabilities, was some â¬52.5m. This figure excludes â¬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 current 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. This provides a profile of the Fund showing yearly inflows, reclaims, disbursements, etc, from 2003 to the end of February 2011. In the period 2008-2010, disbursements from the Fund totalled some â¬131m. Table 1 below sets out details in this regard, including the relevant Departments and agencies involved.
Finally, the Deputy should note that monies 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, the Government's priority, therefore, is to ensure that funding is targeted on a needs basis and spent efficiently and effectively.
TABLE 1: Summary of disbursements from the Dormant Accounts Fund for the years 2008 - 2010
| Entity making disbursements | 2008 (â¬) | 2009 (â¬) | 2010 (â¬) |
| The former Dormant Accounts Fund Disbursements Board | 10,524,631 | 4,264,446 | 874,975 |
| Dept of Community, Equality and Gaeltacht Affairs â Rural Social Scheme | 16,000,000 | 0 | 0 |
| Dept of Community, Equality and Gaeltacht Affairs â other measures | 9,563,454 | 7,739,459 | 5,285,543 |
| Dept of Education and Skills | 18,771,252 | 8,403,730 | 1,216,100 |
| Health Service Executive | 13,397,028 | 8,804,948 | 6,119,277 |
| Dept of Arts, Sport and Tourism | 874,483 | 1,304,000 | 394,755 |
| Office of the Minister for Children and Youth Affairs | 2,999,978 | 5,240,455 | 2,965,953 |
| Dept of Communications, Energy and Natural Resources | 517,259 | 774,457 | 0 |
| Dept of Justice and Law Reform | 129,960 | 193,105 | 672,150 |
| Irish Prison Service | 272,660 | 419,735 | 217,974 |
| Dept of Environment, Heritage and Local Government | 0 | 500,000 | 1,506,108 |
| Dept. of Social Protection | 0 | 0 | 1,014,200 |
| Total | â¬73,050,705 | â¬37,644,335 | â¬20,267,035 |
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