Dormant Accounts Board to be dissolved

OIREACHTAS SUBCOMMITTEE ON THE ENVIRONMENT:THE GOVERNMENT is to dissolve the Dormant Accounts Board and transfer its powers over a remaining €102 million fund to Minister for Environment Phil Hogan.

Hopes of a major payout were, however, dashed yesterday when an Oireachtas Committee was told spending of the cash was restricted by the “troika” of lenders to Ireland – the European Commission, European Central Bank and International Monetary Fund – as well as by Government rules on provision for any claims.

Dormant accounts are accounts in financial institutions that have not been used, or insurance policies that have not claimed by their owners, for at least 15 years.

Since its establishment in April 2003 to the end of April 2012, some €666 million, has been transferred to the fund, including some €36 million in interest. After money reclaimed by account holders, some €267 million was given to projects and programmes approved by the board. The board’s remit was to advise the Government on projects and programmes designed to alleviate poverty and social deprivation.

Speaking at the Oireachtas Subcommittee on the Environment yesterday, Mr Hogan said the net value of uncommitted funds is currently €102 million, and the reserve account from which future claims by account holders will be met is €50 million.

Mr Hogan said spending from the fund could be sanctioned only by the Department of Public Sector Reform. Just over €400,000 was sanctioned in the last accounting year.

He said spending the remaining money was something that required the Department of Environment’s approval “because it is up against the ceiling of what we [in the department] can spend”.