Vol. 567 No. 5
85 Mr. O'Shea asked the Minister for Community, Rural and Gaeltacht Affairs the progress made to date by the Dormant Accounts Fund Disbursements Board; if the promised three-year plan for the disbursement of moneys will be published; when the first disbursement of funds is expected; the guidance or terms of reference given to the board; and if he will make a statement on the matter. [14526/03]
The Dormant Accounts Fund Disbursements Board is an independent statutory body under the aegis of my Department. I understand that the disbursement plan is currently in preparation by the board. When completed, the plan must be submitted to the Minister for Community, Rural and Gaeltacht Affairs for approval.
The board will publish the plan as soon as it receives approval. Decisions on disbursements from the fund will be made by the board as provided for under the legislation. The terms of ref erence of the board in preparing its disbursement plan, and in making disbursements, are clearly set out in sections 41, 42 and 43, as amended, of the Dormant Accounts Act 2001.
Will the Minister of State expand on what is meant by "charitable and community purposes"? He stated that the terms of reference of the Dormant Accounts Fund Disbursements Board are laid out in the legislation. Will he inform the House who the members of the board are and what instructions were given? Will he say what is the time span for the production of the three-year report? The money is there to be used and the sooner it is used, the better for all those who will benefit from its use.
I will supply the Deputy with a list of the members of the board. It is information which is in the public domain. The board was set up last year and I attended its first meeting last July. We are expecting to receive the disbursement plan soon and certainly before the summer.
The term "charitable or community" can be used to cover a fairly wide area. It can mean programmes or projects that are designed to assist the personal, educational and social development of persons who are economically, educationally or socially disadvantaged or those with a disability. It is a broad term which covers disadvantage.
The Minister for Finance is on the record as saying that he hoped money would be channelled in the direction of intellectual disability. If €35 million was sent in that direction this year it would be a great boon to this sector.
Deputy O'Dowd has spoken at length on the subject of the CDPs. Could this fund be used to make up the 6% shortfall in funding to ADM and consequently to the community development projects, particularly in regard to the general Government commitment to front-load in the direction of disadvantage? This forms the basis of the RAPID programme. I am concerned that this will drag on. The money is available and there is a great need for it to be used. Will the Minister of State guarantee that the report will be published before mid-year – before the summer recess?
I do not foresee a delay. The board has been established less than a year and it has a big job to do. Projects or services for the mentally handicapped can certainly be included. The sum of €165 million has recently been transferred for disbursement but no more than €30 million will be disbursed in any one year. It can be used for capital projects or for services. Nothing we receive in the future will be similar to this money because it is a once-off payment. The board will therefore look at capital projects in the main. I am confident that the disbursement plan will be available by the summer, whatever about when the House goes into the summer recess.
The board is to produce a three-year plan. The Minister of State has stated that there is approximately €165 million in the fund and it is not envisaged that more than €30 million will be spent in any one year. This indicates that only €90 million would be spent over the three years. Is that the intention and what is the justification for not releasing all the money over the three-year period?
One year out of the three years is already gone. It could be said that only €60 million will be spent. I suppose the temptation is there to blow the money but we are regarding it as a guideline. The Department of Finance advises us not to spend the money all at once because it is reckonable as part of the indices of Government debt borrowings and spending. I am not an expert in such matters but it would be regarded as part of overall Government spending in those various indices.
We are considering spending about €30 million a year. If the need arises, we could ask for Department of Finance approval to increase that figure.
What is the position regarding insurance policies which have not been claimed? Will that money be added to the fund as it comes on stream next year?
It will. We have no expectation or estimate yet. The money will not be available to us for another year. We have not even heard an estimate figure. The main function of the dormant accounts legislation that was originally passed was to allow banks and building societies to reunite people with their money. We have all heard of people who have been telephoned by a bank manager and told that an old account in their father's name has been dormant for 40 years. The initial estimate one hears is not necessarily what is transferred. Some €165 million has been acquired for disbursement and an additional 15% has been placed in a reserve account for those who may claim their money at a future date. I am no expert on that.
