Dáil Éireann debate -
Thursday, 17 May 2001

Vol. 536 No. 4

Written Answers. - Proposed Legislation.

Ivor Callely

Question:

119 Mr. Callely asked the Minister for Finance the scope of the proposed dormant accounts legislation; if the proposed legislation will adequately address all moneys held by financial institutions including bonds or drafts; and if he will make a statement on the matter. [14381/01]

Minister for Finance (Mr. McCreevy)

Last November the Government approved proposals for draft legislation which is intended to provide a legislative framework for the handling and management of funds in dormant accounts in financial institutions. The legislation will apply to financial institutions generally such as banks, building societies, insurance companies and the Post Office Savings Bank.

Work on the drafting of the enabling legislation is progressing well and I intend to publish a Bill on this matter later this month. Due to the legal complexity of some of the issues arising in regard to dormant funds, a phased approach to the framework legislation is being pursued. The initial dormant accounts Bill will be confined to accounts held in credit institutions, that is banks and building societies. It will also apply to the Post Office Savings Bank savings certificates, savings bonds and instalment savings schemes – but not to prize bonds.

Unclaimed bank drafts are not included within the scope of the scheme at this stage. It is proposed that the Bill will include provision for the scheme to be extended at a later date, by ministerial regulations, to cover other products and institutions which may be broadly similar to those already falling within the ambit of the legislation. The question of extending the scheme to cover bank drafts and bonds will be considered in that context.

A follow-up Bill, to be brought forward later this year, will cover the more complex area of mature but unclaimed life assurance policies.