Noel Grealish (Galway West, Independent)
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2008. To ask the Minister for Rural and Community Development the State agencies, organisations or boards under the responsibility of her Department or that receive funding from her Department that have been charged negative interest by financial institutions since negative interest rates were introduced; the amount of interest that has been charged to each State agency, organisation or board in 2021 in each of the preceding years in which such charges were applied; and if she will make a statement on the matter. [29212/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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As regards the four agencies under my Department's remit, I have provided details below in respect of Pobal and the Western Development Commission (WDC). The Charities Regulator and Water Safety Ireland have not incurred any interest charges for savings on deposits in financial institutions since negative interest rates were introduced.  

I am not in a position to respond in respect of negative interest charges or other financial charges incurred by organisations that receive funding from my Department as that is a matter for those organisations.

Western Development Commission

WDC has incurred €82,565.52 since the inception of negative interest rates on accounts in 2018; this includes bank accounts held by the Western Investment Fund. The summary breakdown per annum is included below:

It should also be noted that positive interest of €28,958.70 was earned in 2021.

Pobal

The table below identifies the interest costs charged to Pobal since negative interest started being applied from February 2017 and is followed by notes provided by Pobal on the figures provided in the table. It should be noted that Pobal operate a wide range of schemes and programmes on behalf of a number of Government Departments, and the negative interest incurred relates to funds deposited as part of operating all of these schemes. 

Notes:

- Negative Interest started being charged to Pobal from March 2017 relating to the month of February 2017, i.e. a month in arrears at a rate of -0.40%.

- Negative interest incurred increased from 2017 to 2018.  This is because there was a full year charged in 2018. Also, some programmes had expanded in 2018 resulting in more funds being on hand.

- It reduced in 2019 as a result of holding less funds on hand and measures undertaken by Pobal to reduce the level of negative interest charged.

- It increased in 2020 due to Departments frontloading of funds when the Covid-19 pandemic started. 

- In 2020 the negative interest charge was increased to -0.65%.

- The negative interest charge increased in 2021. This was due to an increase in overall funds managed by Pobal during the year, principally Early Years programmes as COVID-19 restrictions were lifted. Also,the negative interest rate of -0.65% was in place for the entirety of 2021, while it had been partly -0.40% and partly -0.65% in 2020.