Dáil Éireann Debate, Wednesday - 27 April 2005
53 Ms Lynch asked the Minister for Finance the latest figures available to his Department as to the value of uncashed bank drafts; if he will consider procedures to divert the money from such uncashed drafts into the dormant funds account; and if he will make a statement on the matter. [13347/05]
Amharc ar fhreagraThe question of the inclusion of uncashed bank drafts in a dormant accounts scheme has been raised in the House over recent years, including during the passage of the Dormant Accounts Act 2001. At that time a sample based estimate suggested that the value of bank drafts in circulation, uncashed for a 15 year period, corresponding to the definition of dormant accounts, might have been in the order of €6 million approximately.
More recently, the financial regulator surveyed the credit institutions which issue these drafts. This work yielded figures for domestic currency drafts remaining uncashed for various periods between six months and 15 years. The information was obtained by the regulator in response to a request from the Oireachtas Joint Committee on Finance and the Public Service and was provided to the committee on 15 March 2005. I have arranged for the Deputy to receive a copy of the table.
As the Deputy will note from the table, in the context of the 15 year dormancy period defined in the existing scheme, the value of bank drafts outstanding for that period is €3 million approximately. This is a relatively small proportion of the resources generated under the present scheme. It is likely that this figure would be reduced further in circumstances where it was proposed to bring uncashed drafts within the dormant accounts scheme.
Moreover, there are a number of significant issues that would require to be resolved relating to the alignment of uncashed bank drafts with the financial instruments covered under the current scheme. These include the questions of establishing beneficial ownership, notification procedures, the characteristics of uncashed bank drafts as instruments which are not accounts, as well as the likely requirement for primary legislation. My Department is continuing to liaise with the financial regulator and the banking industry on these issues and also to gather detailed information with a view to determining the merits or otherwise of incorporating uncashed bank drafts into the current scheme.
