Government's '€110m slush fund to buy votes'
An independent Dormant Accounts Disbursement Board currently decides which disadvantaged or disabled groups will get this funding.
The money has come from accounts in banks, building societies and post offices that have not been touched for 15 years.
But the Cabinet has decided to change the rules to allow the Government, and not the board, make the final decision on the disbursement of the money in future.
Labour's Community, Rural and Gaeltacht Affairs spokesman Deputy Brian O'Shea revealed yesterday: "The Government has come on a crock of gold which will be used as a slush fund at future elections."
This is because ministers will have a say in how the money will be spent and will be able to use it in constituencies where the Government needs to win or retain Dáil seats, Mr O'Shea claimed.
"The Government's decision to give itself the final decision on disbursement is cynical, political opportunism of the worst kind," Mr O'Shea said.
Junior Minister Noel Ahern, who has direct responsibility for the dormant accounts at the Department of Community, Rural and Gaeltacht Affairs, has confirmed in writing to the Dáil that the Cabinet decided on December 16 to change the rules on the disbursement of dormant accounts. Mr Ahern has also confirmed that there is €175 million in the dormant account fund and that €30 million of that will be disbursed this year.
A further €10 million has been allocated to the Rural Social Scheme in this year's Budget and €25 million must be kept in reserve for anyone who makes a claim on their money.
This will leave €110 million in the dormant account fund when the Government takes over control of disbursing the money later this year. But more money will be added to it from the dormant accounts next April. Also, this year, for the first time, unclaimed insurance policies will be added to the fund.
Mr O'Shea will table questions on the issue in the Dáil next week.
But the Department of Community, Rural and Gaeltacht Affairs rejects Labour's claim.
A spokeswoman said yesterday that the rules had been changed, but the Dormant Accounts Disbursement Board would still have an advisory capacity. The Dormant Accounts Disbursement Board is a small body and it was felt it would be more appropriate, considering the size of the fund, that the Government should make the decision in relation to disbursement, the department spokeswoman said.
"But the board will still be retained in an advisory, monitoring and planning role," she added.
The board will give particular advice on priority areas to be considered annually for funding; preparation of the disbursement plan, as well as reviewing, evaluating and reporting on the effectiveness and impact of the disbursement.
"The board will draw up recommendations, but the Government will make the decision on the disbursement," the department spokeswoman said.
Board chairman Conleth Bradley could not be reached for comment.
