Over 60 per cent of account holders have claimed their money back, leaving only about €80 million for the Government, writes Carl O'Brien
The Government is likely to have less than half the money it hoped to seize from dormant bank accounts available to spend on social and community projects.
The deadline for customers to claim funds from accounts which have not been activated for the last 15 years expired last month.
While initial Department of Finance estimates suggested about €177 million was lying dormant, more than 60 per cent of account holders have claimed their money back, leaving about €80 million, according to the latest official figures.
The decision to seize the funds from banks, building societies and An Post came after recommendations in the Public Accounts Committee's DIRT inquiry report, which said dormant funds should be "used for specific purposes of societal and community benefit".
Banks were required under legislation to spend the last 12 months making their "best efforts" to contact account- holders, in many cases by writing to that person at the last known address.
They were also asked to bring the scheme to the attention of the public using advertisements in national daily newspapers.
However, the owners of the money or their next of kin have a guaranteed right to have their funds returned any time.
The money is being transferred to a special dormant accounts fund, administered by the National Treasury Management Agency.
A similar scheme aimed at using dormant funds from unclaimed life assurance policies is due to come into force next April.
From this year there will be an annual transfer of unclaimed policies and dormant account funds which have not been activated for 15 years.
A special board has been appointed which will target the funds at projects aimed at alleviating poverty and social deprivation, as well as programmes to assist people with disabilities.
It is chaired by Mr Conleth Brady, a barrister, and includes representatives from the financial services industry, community and voluntary sector, disability organisations and the education sector.
The Minister for Finance, Mr McCreevy, said in his Budget speech last year that the fund would have a particular focus on children with learning disabilities.
The National Association of the Mentally Handicapped of Ireland has welcomed the decision to target funds at the disability sector, but warned against it being used as a substitute for Exchequer funding.
The association's secretary, Ms Deirdre Carroll, said yesterday: "Rather than rely on core Department budgetary lines, we are sent to the dreaded area of once-off schemes with no long-term future or planning built-in.
"There is no new money available for spending," Ms Carroll added.
"Developments are being cut back, shoring up problems for the future as the parents of an ageing population either die or can no longer physically cope."
Anyone who suspects they might own a dormant account is advised to contact their bank branch or the Irish Bankers' Federation.