Dáil Éireann debate -
Tuesday, 21 Oct 2003

Vol. 572 No. 6

Priority Questions. - Dormant Accounts Fund.

Brian O'Shea

Question:

74 Mr. O'Shea asked the Minister for Community, Rural and Gaeltacht Affairs the total amount of money paid out to date by the Dormant Accounts Fund Disbursements Board; the total amount expected to be paid out by the end of 2003; the reason for the long delay in making these payments in view of the acute financial circumstances of many potential beneficiary organisations; and if the disbursement plan submitted by the board and approved by him, with amendments, will be published.

Mr. N. Ahern

As the Deputy is aware, the Dormant Accounts Fund Disbursements Board is an independent statutory body, under the aegis of my Department, with responsibility for overseeing the disbursement of unclaimed moneys from the Dormant Accounts Fund. The board presented its disbursement plan for approval this summer and following detailed consideration, including consultation at Cabinet level, it was approved on 30 September subject to a number of amendments.

The specific amendments to the plan include ring-fencing a level of disbursements towards RAPID, CLÁR and drug task force areas. I believe that a reasonable proportion of these funds should be directed towards projects in areas designated by Government as experiencing particular social and economic disadvantage.

As regards funding for persons with a disability, the plan was amended to ensure a focus towards those who require intensive levels of support in areas of health and personal social services. I believe that such a focus is appropriate given the particular pressures faced by families of those who require such supports. The third main amendment relates to the addition of IT as a measure to tackle disadvantage. The inclusion of this measure is important in promoting access to – and competence in – technology, in particular for young people in disadvantaged areas and for persons with a disability.

Now that the plan has been approved, the board is making the necessary practical arrangements for its publication which I understand is scheduled for mid November. In addition, the board is currently advancing its consideration of the practical arrangements necessary to enable commencement of the implementation of the plan. In this regard, it is anticipated that arrangements for the board to engage a service provider to administer a funding programme on its behalf will be finalised shortly.

Additional information.The amount to be paid from the fund this year will be dependent on the level of applications received. While early disbursements from the fund would be desirable, one of my major concerns is to ensure that, as a new entity, the board develops and puts in place transparent procedures by which it can fairly seek and assess applications, decide on funding and review effectiveness of spend. Work on this process is well advanced and I expect it will be concluded shortly, thus opening the way for disbursements to commence.

The current value of the fund is in the order of €180 million, including a reserve which must be maintained to meet claims for repayment and various costs associated with administering the scheme. However, consistent with advice from the Department of Finance, the board has agreed that not more than €30 million will be disbursed annually.

Mr. O'Shea

Does the Minister of State not think it strange that the Dormant Accounts Fund Disbursements Board was set up in June 2002 and we still have not had publication of its report and neither have application forms been made available for people to apply to the scheme? He mentions a service provider. Are we talking about an organisation such as Area Development Management, ADM, to administer the fund on behalf of the disbursement board and does this mean, in effect, that virtually no money will be allocated in the 2003-04 year, as was indicated? The indication was that €30 million would be disbursed in this time.

Mr. N. Ahern

The board is an independent body. It was set up in the summer of 2002 and has been working on its plan. It submitted it to the Department of Finance in late June in accordance with the timetable laid down. It has now gone through Cabinet and has been agreed by the board. It will be published in the week commencing 10 November and the board hopes to reveal full details of how it is going to allocate the fund.

Yes, we are talking about a service provider, since the board is a statutory body and does not have huge back-up like the organisation the Deputy has mentioned. Negotiations are ongoing and an organisation like that will assist in the processing and the paperwork. As to whether moneys will be spent this year, I believe some will be allocated by the end of December. At this stage probably little or nothing will be spent, but from about the second week in November things will move very quickly. About €30 million will be spent in the first 12 months.

Mr. O'Shea

Will the Minister agree that this is a cumbersome model? I have little confidence in his expectation of the sort of money that can be allocated within the 2003-04 year. Effectively he is extending the timescale to the end of 2004. Is it not appalling that €200 million is lying in an account when community and voluntary organisations are crying out for money, particularly against the background of the cutbacks that the Minister of State's Department brought about in these areas in the last budget? We can be far from sure that similar cuts will not occur in the 2004 budget. Does the Minister not agree that the amount of time that has been wasted is disgraceful and that the organisations that need money to provide essential services are kept waiting while this over-cumbersome model is being put in place? We cannot be sure in fact that any money will be allocated this year, much less in the early part of next year.

Mr. N. Ahern

I do not think it is appalling or disgraceful. There was about €180 million in the fund and 15% is being held back, so about €150 million will be allocated. I do not know what cutbacks the Deputy is talking about. There have been no cutbacks in our Department. Since we were here last we have, during the summer, announced the training and federation grants which means new money under the White Paper. Many of those community and voluntary groups have received money and a lot of them were very grateful for it over the summer. Whatever about the past, it will all be announced in the second week of November and we will fast forward from then.