Dáil Éireann Debate, Thursday - 27 February 2014
214. Deputy Terence Flanagan asked the Minister for Justice and Equality if he has considered ring-fencing crime proceeds so that they are reinvested in deprived areas; and if he will make a statement on the matter. [10280/14]
View answerIn accordance with relevant legislation dealing with the confiscation of proceeds of crime all monies collected are returned to the Exchequer. Such monies are paid into the Government’s Central Fund, from which the Government draws for expenditure on all necessary public services and investment.
From time to time, it has been suggested that monies collected by the Criminal Assets Bureau should be used to fund community projects. However, while my Department has previously consulted with the Department of Finance on the matter and it has been accepted that there may be some symbolic value in the suggestion, it is considered problematic and raises a number of practical difficulties.
A policy of ring-fencing monies obtained by the Exchequer and the reallocation of these for a specific purpose runs contrary to the normal Estimates process. While allowing for a small number of very specific targeted exceptions, it is believed that earmarking revenues for a specific expenditure programme would, in general, constrain the Government in the implementation of its overall expenditure policy.
There is also the problem of additional costs which would accrue in the administration of any scheme to divert such funds to local projects and additional administrative costs without any additional revenues being generated.
It could also be argued that a significant proportion of the monies secured by the Criminal Assets Bureau are already owed to the Exchequer as it often relates to non-payment of taxes and social welfare fraud.
In the current economic climate the Exchequer could not sustain a loss of revenue without making compensatory adjustments. If the monies collected were to be diverted to community projects, there would inevitably be implications for any other monies those projects received from the Exchequer. Alternatively, other public expenditure programmes would have to sustain the loss.
There are currently no proposals to change the existing arrangements concerning such monies.
