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Dáil Éireann debate -
Thursday, 19 Nov 1998

Vol. 497 No. 1

Adjournment Debate. - Proceeds of Crime Act.

Mr. Hayes

I am grateful for the opportunity to raise this matter on the Adjournment. My request is straightforward, that the Government amend the Proceeds of Crime Act, 1996, to ring-fence moneys seized by the Criminal Assets Bureau for areas worst affected by the drugs epidemic.

In reply to a parliamentary question I asked some weeks ago, the Minister informed me that in excess of £8 million has been seized since the legislation to establish the Criminal Assets Bureau came into effect in 1996. There is a five year injunction on the spending of that money by the courts. If £8 million has already been secured following the implementation of that legislation, there can be no doubt that the sums seized will continue to grow. When the injunction ceases to apply in 2003, the Government will be able to tap into a considerable resource as a result of the establishment of the Criminal Assets Bureau. It is unfortunate that the money is frozen until then.

I am asking the Government to ring-fence the moneys which the State has succeeded in clawing back from crime bosses and drug traffickers to benefit the communities worst affected by the drugs problem. It would have been preferable if, when the proceeds of crime legislation was going through the Houses, a provision was included to provide that the moneys seized be vested either in the Cabinet sub-committee on social exclusion or in the Department of Tourism, Sport and Recreation rather than in the Department of Finance. The Minister will be aware that moneys in the Department of Finance can sometimes get lost in a type of financial black hole. It is crucial that in this case the moneys are ring-fenced for the communities which are worst affected by the drugs epidemic.

No greater success could emerge from this endeavour than if it is explained to these communities that the moneys seized from the godfathers of crime by the Criminal Assets Bureau will be returned to them. The money can be used to build community projects and facilities in their areas. We should loudly boast that the money which was stripped from those areas for too long will be redirected back to them from the pockets of the godfathers of crime. I am anxious to hear the Minister's reply. I hope he will be constructive.

The Criminal Assets Bureau was established in 1996 as part of an overall Government response to the problem of drugs and organised crime. The bureau is a multiagency statutory body that draws its staff from members of the Garda Síochána, the Revenue Commissioners and the Department of Social, Community and Family Affairs.

In the relatively short time it has been in existence, the outstanding performance and success of the Criminal Assets Bureau is hard evidence of what can be achieved when governments and statutory agencies put their heads together in a determined manner to hit the drugs barons and other serious criminals where it hurts most — in their pockets, bank accounts, fancy houses and fast cars. The bureau's use of the provisions of the Proceeds of Crime Act, 1996, has been most effective to date. At this point it might be useful to reflect on the primary features of the 1996 Act which empower the High Court to make an interim order freezing property for 21 days, an interlocutory order freezing property for up to seven years and a disposal order once the property has been frozen for seven years.

The effects of these provisions as applied by the Criminal Assets Bureau can be clearly seen. For the period from 15 October 1996 to 31 December 1996, the bureau obtained six interim orders to the value of £2.1 million and five interlocutory orders to the value of £2 million. In 1997 the bureau obtained 22 interim orders to the value of £2.3 million and 13 interlocutory orders to the value of £1.5 million. The bureau has also demanded tax with interest in the amount of £8.65 million and has made a number of social welfare determinations resulting in overpayments assessed in the amount of £0.219 million.

If and when a disposal order is made, the property or the proceeds of disposing of the property will be vested in the Minister for Finance to be realised for the benefit of the Exchequer. Accordingly, the Minister has no discretion in the use of any funds transferred to him under this Act. Therefore, while the case made by the Deputy is worthy in terms of the visual impact of such a gesture, it would be contrary to standard public accounting procedures to transfer particular revenues to particular purposes. All revenues are taken in by the Exchequer and such allocations as are necessary are made through the normal Estimates process.

It goes without saying that any funds that are necessary for dealing with the drugs problem in areas such as those referred to by the Deputy will be provided for in the normal way through the relevant Votes. If the approach suggested by the Deputy was adopted, it would mean that the treatment of victims of the drug problem would be financed, in part at least, by uncertain and variable revenue sources. In addition, under the provisions of the Proceeds of Crime Act, it could be up to seven years from the time that illegal assets are seized before any funds are transferred to the Exchequer. Therefore, I firmly believe that current Government policy for dealing with the drugs problem, funded through the normal channels, is the correct way to proceed.

This policy is essentially a two-pronged approach to deal with both supply and demand. On the one side, there are tough enforcement measures backed up by the necessary legislative requirements, for example, the Criminal Assets Bureau, the operations of the Garda national drugs unit and operations Dóchas, Mainstreet and Cleanstreet. On the other side, there is a multi-agency response to deal with the demand element of the problem. This two-pronged approach is vital since efforts to cut the supply of drugs which are not backed up by measures to address the reasons people become addicted in the first place will ultimately prove futile.

It is in this context that the Government has adopted an integrated and co-ordinated approach to tackling all aspects of the problem. This involves the combined efforts of statutory agencies and community and voluntary groups. One of the most encouraging aspects of this strategy has been the emergence of these groups as a real force in dealing with the drug problem in their own areas. Their efforts and dedication are now being fully recognised and supported by the Government and statutory agencies.

Local drug task forces have been established in the areas referred to by the Deputy. These task forces represent a new partnership between the statutory, voluntary and community sectors. These groups are supported by flexible, responsive structures at central level which include a Cabinet committee on drugs and social inclusion, chaired by the Taoiseach and of which I am a member, and a national drugs strategy team comprising key personnel from my Department, the Garda Síochána and other relevant Departments, statutory agencies and community and voluntary groups. Of course, and this is of direct relevance to the issue raised by the Deputy, these new structures are underpinned by the commitment of the necessary financial resources.

The Government has approved funding of £10 million to support the implementation of the service development plans which have been drawn up by the task forces, and this is currently under way. Another reflection of the Government's commitment to tackling the problem is the young people's facilities and services fund under which £30 million has been allocated to support the development of a variety of capital and non-capital projects in disadvantaged areas, in particular, those areas where a significant drug problem exists or has the potential to develop. This is hard evidence of the Government's commitment to providing the necessary resources to deal with the scourge of drugs in our communities.

While the sentiments behind the Deputy's proposal are worthwhile, the current structures to fund the Government's anti-drug policy are working. I assure the Deputy and everybody else concerned with this problem of my total commitment to ensuring that everything possible is done to ensure the success of the policies we are pursuing.

The Dáil adjourned at 5.20 p.m. until 2.30 p.m. on Tuesday, 24 November 1998.

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