Disadvantaged areas to get €30m a year from dormant funds account

UP TO €30 million will be given to disadvantaged groups annually from the Dormant Accounts Disbursement Plan, Junior Minister Noel Ahern revealed yesterday.

Over the next five years this money will be given to three main schemes the RAPID, CLÁR and the Drugs Task Force areas.

People with disabilities will also get a share of the 165 dormant accounts fund.

Mr Ahern, who has direct responsibility for the dormant account fund at the Department of Community, Rural and Gaeltacht Affairs, said the money would make a big difference to the work of disadvantaged communities.

"The Government recognises the importance of supporting and developing disadvantaged communities. I am delighted that a significant amount of the money will go towards designated disadvantaged areas, particularly the Drugs Task force areas," Mr Ahern said.

The dormant accounts money earmarked for disabled people will support health and personal services.

Community Rural and Gaeltacht Affairs Minister Éamon Ó Cuív, who has overall responsibility for the scheme, also welcomed the launch of the Dormant Accounts Disbursement Plan yesterday.

Part of the fund will be spent on giving people in disadvantaged areas and people with disability access and competence in using information technology, he said.

The three main schemes that will benefit from the fund are:

RAPID Revitalising Areas by Planning Investment and Development: a scheme that targets 25 disadvantaged urban areas and 20 towns.

CLÁR Ceantair Laga Ard

Riachtanais: a similar scheme targeting rural areas and the islands.

Drug Task Forces (DTF): an action plans for regions with the worst drugs misuse.

Legislation was passed last year giving the Government the power to take money from dormant bank accounts that was not claimed within a set period of time. The first transfer of monies to the Dormant Accounts Fund took place at the end of April this year and totalled €196m.

But after €18m was reclaimed from the fund by dormant account holders within the given timeframe, and account was taken of the estimated €13m reserve needed to meet future claims, approximately €165m was left.

The Department of Finance advised the disbursement board not to give away more than €30m a year. The fund has the potential to grow even more because unclaimed life assurance policies will be added to it next April.