Dáil Éireann debate -
Tuesday, 24 Nov 1998

Vol. 497 No. 2

Written Answers - Dormant Accounts.

John Gormley

Question:

213 Mr. Gormley asked the Minister for Finance if he will report on the number of dormant credit balances in the Irish banking system which arise from the dissolution or amendment of the articles of association, to include non-charitable objects, of bodies granted tax exempt status under the Income Tax Act, 1967, with its attendant right to open an unlimited number of DIRT free bank accounts; and if he will make a statement on the matter. [24335/98]

Minister for Finance (Mr. McCreevy)

I do not have the information requested by the Deputy. However, the Deputy may recall that, during the debate on the Central Bank Act, 1998, I outlined the position in relation to an examination undertaken by officials in my Department into the general issue of dormant accounts held in credit institutions. That investigation identified potential legal and constitutional issues, particularly in relation to property rights, which have to be taken into account in the development of policy in relation to such accounts. I pointed out that this is a very complex issue and one which requires very careful consideration.

I have made it clear before this that I am not going to let the matter rest and that I will investigate the issue of dormant accounts thoroughly during my term of office. That investigation will cover all types of dormant account. In that context, I have directed my Department to produce proposals designed to resolve the difficulties identified by the earlier examination.