Dáil Éireann Debate, Thursday - 11 June 2015
7. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government if he will provide details of the planned spending from the Dormant Accounts Fund this year; the net inflow of funds expected into the fund this year; and if he will make a statement on the matter. [22062/15]
Amharc ar fhreagraI have been very concerned that every year money is being transferred from banks into the Dormant Accounts Fund, but the money is not being used for the purposes provided for in the legislation.
It is just accumulating in Government coffers. My question is how much money is expected to come in this year, net of outflows. It normally comes in during April. What are the plans this year to spend the Dormant Accounts Fund on social and economic disadvantage, educational disadvantage and on disability?
Under the dormant accounts legislation, balances on dormant accounts with banks, building societies and An Post and the net encashment value of certain life assurance policies are paid into the Dormant Accounts Fund, which is managed by the National Treasury Management Agency, NTMA. The primary purpose of the legislation is to reunite the original account holders with their moneys, including all interest due. In addition, the legislation provides that disbursements from the fund may be made for charitable purposes or for purposes of community benefit, as the Deputy outlined.
Financial institutions transfer dormant funds to the NTMA, generally as one block transaction on 30 April each year. Information from the NTMA as of the end of April 2015 indicated inflows of approximately €36 million this year. The 2012 Dormant Accounts (Amendment) Act provides for an action plan to give effect to the scheme and full details of the measures adopted under the action plan in 2014, which continue to be rolled out this year, are available on my Department’s website.
The current plan includes some €26 million of measures across a range of Departments and agencies that will provide diverse supports for disadvantaged communities. The planned expenditure for 2015 will support a range of measures, including emergency support services training and other supports for vulnerable and disadvantaged young people, and health-related supports to assist young people with disabilities, as well as other community-based initiatives.
To give effect to the plan, there is a total allocation in excess of €18 million in the Estimates for 2015 across seven Departments. That includes almost €6 million for measures under my Department. Under the plan, Pobal will administer new measures on behalf of my Department that will promote social enterprise and innovation, both urban and rural, and youth employment, employability and entrepreneurship in disadvantaged areas. Applications will be open to eligible community and voluntary sector organisations, local development companies and statutory and other public agencies from 1 July next with a closing date of 22 July.
Pobal also administers new training and support services for home carers on behalf of the Department of Social Protection and a range of measures on behalf of the Department of Health. Applications under these measures can also be made during the same period by eligible community and voluntary sector organisations, local development companies and statutory and other public agencies. As part of the support for these new measures, Pobal will hold a series of four regional pre-application information meetings which will take place later this month. Full details on each of the measures, the online application process, and how to register for the pre-application meetings are available on Pobal’s website.
It would appear that the Minister of State is going to get in €10 million more this year than will be spent. If one looks at cash expenditure, then a total of €18 million will be unspent. For some reason the Government is holding onto the money. My understanding is that excluding the statutory reserve required to reunite people with dormant accounts, as the Minister of State put it, more than €100 million in the Dormant Accounts Fund is not being released for the purposes for which it was collected from the banks. Perhaps the Minister of State would confirm the figure on the record of the House? Why is the money being held and why are we not using it for the intended purposes?
I will give the Minister of State two examples. Could she explain why the Government ceased the operation of the scheme we had in place for RAPID areas, whereby we allocated €100,000 every year for small programmes in the most disadvantaged areas in the country.
I thank the Deputy.
I will finish the question when I ask my next supplementary.
The net value of uncommitted funds is currently €141.28 million. As the Deputy well knows, people sometimes view dormant accounts as free money or as some type of slush fund but that is far from the case.
Well said.
As the Deputy well knows, there are accounting procedures governing dormant accounts funding. He knows also that the moneys must be included in the Vote and must be included in the Estimates, and that is how we arrive at the money we can commit from the Dormant Accounts Fund. A complex accounting procedure is involved. I assure the Deputy that where moneys can be spent, they will be spent. However, he must be mindful of the requirements under the legislation for me to provide a report to the Government on the operation of the fund during the preceding year. I will do that before the end of June. We are subject to regulatory requirements in the same way as every other Government organisation.
When the Minister of State goes back to the Department she should ask the officials whether the previous Government spent the money, and if that was done in an open, fair and transparent way, and to the benefit of people. I will mention two programmes which the Minister of State could institute immediately. One is to give the money to the RAPID area implementation team, which would ensure there is no ministerial interference, to fund small projects in communities in the most deprived areas. The sum of €100,000 could be allocated between the 41 communities. The second programme we operated was a scheme which provided matching finance to either philanthropic or community funds, in particular to disability organisations for capital projects. That resulted in the provision of many very good facilities for people with disabilities. Would the Minister of State consider opening the fund for that purpose?
I know the challenges involved in the operation of the fund. They do not justify sitting on €142 million. The statutory reserve more than covers the risk of anyone who comes looking for his or her money. The Minister of State has still not explained why we are sitting on €142 million that could do so much for ordinary people around the country who suffer social and economic disadvantage, educational disadvantage and those in the disability sector.
I am sorry but we are over time.
I assure the Deputy that if I was sitting on more than €100 million and I could get my hands on it for disadvantaged communities and youth unemployment, I would do so. The programme is in place and there are commitments in that regard in the Votes. The process is governed by accounting procedures. It is not a slush fund.
I accept the point the Deputy made about RAPID areas. The other area to which he probably wished to refer is to CLÁR areas. Those programmes were good. I am due to answer a question on the RAPID programme and if the Deputy wishes I can supply him with the response also. I also refer him to the Pobal website which contains much information and some of the answers he sought.
