Maureen O'Sullivan (Dublin Central, Independent)
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Question 227: To ask the Minister for the Environment, Community and Local Government, having regard to the objective of reuniting dormant account holders and policyholders or their next of kin with their dormant funds and unclaimed policies in credit institutions and insurance undertakings, the current reserve within the dormant accounts fund against future claims; the way this level of reserve compares to dormant accounts funds internationally; if any consideration has been or is being given to revising the level of reserve; and if he will make a statement on the matter. [12307/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The current reserve within the Dormant Accounts Fund as of the 31 March 2011 is €46m. The reserve fund is retained by the National Treasury Management Agency (NTMA) to meet future reclaims and cover the expenses of the Board and the NTMA.

Under Section 17(4) of the 2001 Act, the NTMA has determined, with the approval of the Minister for Environment, Community and Local Government, given with the consent of the Minister for Finance, that 15% of the total moneys received by the Fund and not yet reclaimed should be paid into the Reserve Account. The value of the Reserve Account at end 2010 was €348 million.

Comparing the Reserve Account to international standards is not relevant as the Reserve Account is used primarily to meet reclaims (where a previously dormant account is reactivated by its owner) and therefore the determination of the appropriate level of the Reserve Account is driven by the trend within Ireland in reactivation of previously dormant accounts. The level of the Reserve Account is reviewed annually as part of the investment plan for the Dormant Accounts Fund.

Maureen O'Sullivan (Dublin Central, Independent)
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Question 228: To ask the Minister for the Environment, Community and Local Government the current level of surplus or otherwise in the dormant accounts fund; in the event of a tapering off of disbursements from the dormant accounts fund the strategic role envisaged from this balance in the national finances; and if he will make a statement on the matter. [12308/11]

Phil Hogan (Carlow-Kilkenny, 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 March 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 €209m. The net value of the Dormant Accounts Fund (uncommitted funds) is €52.5million. On 1 May 2011, the functions relating to Dormant Accounts, previously administered by the Department of Community, Equality and Gaeltacht Affairs, transferred to my Department.

A summary of the current status of the DAF is available on the website 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 March 2011. Disbursements from the DAF are paid from the Votes of the relevant Departments which, in turn, are reimbursed from the Fund. Expenditure under the Fund is spread across some 10 Departments and Agencies.

Maureen O'Sullivan (Dublin Central, Independent)
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Question 229: To ask the Minister for the Environment, Community and Local Government the social, economic or other policy objective that has been achieved by exempting dormant balances in credit unions from the provisions of the Dormant Accounts Acts; and if he will make a statement on the matter. [12309/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The position as regards dormant accounts funding is that, in practical terms, increasing the amount available in the Fund does not necessarily allow for the introduction of new dormant accounts measures or programmes. While applying the provisions of the dormant accounts legislation to credit union accounts would increase the amount available in the Fund, Government Departments and agencies would still have to source monies for dormant accounts programmes and measures from their Exchequer allocation, in the same way as with any other funding programmes. When the monies expended on dormant accounts measures and programmes are reimbursed from the Dormant Accounts Fund, the refund is to the Exchequer rather than to the spending Department. For this reason, dormant accounts expenditure is subject to the same constraints within Departments as any other spending programmes.

At a time of significant budgetary pressures, resulting in reduced allocations across Government Department Votes, there is a need to prioritise existing funding programmes. Expenditure on new dormant accounts measures or programmes could reduce spending on other existing programmes and serve to increase Government debt levels. As such, creating a potential new source of dormant accounts funding, such as credit union accounts, would serve little practical purpose at this time.

However, this is a matter I am prepared to keep under review, particularly in the context of any improvement to the budgetary situation.

Maureen O'Sullivan (Dublin Central, Independent)
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Question 230: To ask the Minister for the Environment, Community and Local Government the degree to which reports of dormant balances for a given year by the covered financial institutions are independently inspected, verified or examined for accuracy; and if he will make a statement on the matter. [12310/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Under the Dormant Account Act 2001, as amended, and the Unclaimed Life Assurance Policies Act 2003, the Financial Regulator may authorise inspectors for the purpose of ensuring compliance by financial services providers with the provisions of the legislation. I do not have a remit in this matter.

Maureen O'Sullivan (Dublin Central, Independent)
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Question 231: To ask the Minister for the Environment, Community and Local Government, in relation to disbursements on dormant accounts measures, the way this will operate in the instance of the Health Service Executive; if the Health Service Executive has to source funding for dormant accounts programmes from its Exchequer allocation; once the HSE incurs the expenditure, if it is reimbursed from the Exchequer from the dormant accounts fund in the form of an appropriation-in-aid paid through the Department of Health and Children; if so, if he considers this the most cost-effective and benefit-effective way to expedite dormant accounts measures in the health sector including expenditure on suicide prevention programmes; and if he will make a statement on the matter. [12311/11]

Maureen O'Sullivan (Dublin Central, Independent)
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Question 237: To ask the Minister for the Environment, Community and Local Government if he will confirm that, as currently constituted, the Government accounting procedures treat it as an increase of the national debt when money from the dormant accounts fund is disbursed to a community-based or other project in the areas of economic and social disadvantage, educational disadvantage, schemes, programmes or services for persons with a disability and suicide prevention; pursuant to this, if he sees merit in reviewing the manner in which disbursements from the dormant accounts fund are treated in the Government accounts procedures; and if he will make a statement on the matter. [12451/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 231 and 237 together.

Under the Government Accounting procedures, disbursements on dormant accounts measures are paid in the first instance "up front" from each Agency or Department's Vote in the same way as with any other spending programme. Therefore, Government Departments and Agencies have to source funding for dormant accounts programmes from their Exchequer allocation in the annual estimates process. The difference with dormant accounts expenditure compared with other funding programmes, however, is that once expenditure takes place, either on administration of the measure, or by the project itself, it is reimbursed to the Exchequer from the Dormant Accounts Fund in accordance with the Dormant Accounts Acts, in the form of Appropriations-in-Aid payable through the relevant Department's Vote. In this way, the costs associated with dormant accounts measures are Exchequer neutral.

As a result of cumulative disbursements to date, the net assets of the fund are less than the dormant funds transferred and not yet reclaimed. This difference represents a contingent exchequer liability that would have to be met by the Exchequer in the event that all moneys transferred to the Dormant Accounts Fund were reclaimed. Under section 17(7) of the Dormant Accounts Act 2001, whenever the moneys in the Investment and Disbursement Account are insufficient to meet the deficiency in the Reserve Account, a payment can be made out of the Central Fund into the Reserve Account of an amount not exceeding the deficiency – such a payment would cause an increase in the national debt.

The Dormant Accounts (Amendment) Act (2005) allows for the disbursal of Dormant Accounts funding to the following themes:

· To improve the quality of life and reduce isolation for people who are economically or socially disadvantaged (Category A – Economic and Social Disadvantage)

· To improve opportunities for individuals who are economically or socially disadvantaged to overcome the impediments arising from such disadvantage through deriving appropriate benefit from education (Category B – Educational Disadvantage);

· To enhance the potential for persons with a disability to play a more active role in society and increase their level of independence (Category C – Supports for people with Disabilities).

Legislation is currently in preparation to dissolve the Dormant Accounts Board and introduce a revised disbursement process for Dormant Accounts Funding. The Bill has been listed for publication in the current Dáil session.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Dormant Accounts Fund 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 May 2003 to end-March 2011, the net transfers to the DAF have totalled some €345m.

The project in question was awarded Dormant Accounts funding of €57,500 under Round 2 of the Dormant Accounts RAPID Additionality Measure. The grant has been used to develop a pilot project working with 8-10 year olds who are at risk from a range of social and economic disadvantages and to establish if earlier intervention adds value to the work of the youth project in addressing the issues of these young people at risk.

The Dormant Accounts Fund is not a source of mainstream funding and cannot of its nature be regarded as a source of indefinite funding for specific projects. In this regard the long-term sustainability of this particular project will have to be pursued with the relevant statutory agencies.