Dormant accounts plan criticised

The Government was engaged in a "blatant political gimmick" to take over the disbursement of the dormant accounts fund "for a political slush fund", it was claimed in the Dáil.

Labour leader Mr Pat Rabbitte accused the Government of using the funds "as a further political slush fund in the way that lottery funds have been disbursed down the years".

He claimed the plan was a "disbursement electoral gimmick and a disgraceful takeover for political purposes of monies that were not the Government's in the first place".

Mr Rabbitte said the monies were not State funds. An independent body had been established by the Minister for Finance to disburse the funds but the Minister for Rural Affairs, Mr Ó Cuív, had announced just before Christmas that he would take over the administration of the fund of just over €100 million.

The funding came from dormant accounts held in financial institutions and which had not been activated in 15 years. This money was to be disbursed to socially and economically disadvantaged groups.

The Taoiseach defended the move and said it was done to ensure maximum transparency of disbursements. Mr Ahern said one of the main reasons was that organisations or individuals could apply for funds under "half a dozen different categories" and under different Departments if there was no way of "bringing them together", and this could not be done transparently.

An enraged Mr Rabbitte said it was "blatantly disingenuous to imply that an applicant might rip off the system by applying under six different headings and the Cabinet will be able to sort this out".

That was why the independent board was established - to decided what projects should or should not be assisted, he said.

And he said that "whatever one associates with Minister Ó Cuív, it is not transparency. I never understood any answer he gave me on any controversial act".

Mr Rabbitte demanded to know why Mr Ó Cuív "felt it necessary to abrogate his legislation and promise amending legislation so he can get his hands on the money", and when this legislation would be brought forward.

Mr Ahern did not know if the legislation would be through before the summer but said the important issue was that the "monies be used for areas of disadvantage".

He said the Government was spending €250 million in Ballymun, and the entire dormant accounts fund would not cover it. Mr Ahern said the board would still evaluate the applications and act in an advisory capacity.

"The advisory board is in place and I do not see why anyone would get excited about how the resources are allocated."

He stressed that the money in the fund should be used to greatest effect in areas of need.

Ms Kathleen Lynch (Lab, Cork North-Central) intervened and said: "The needs will be candidates in danger".

The Taoiseach pointed out that ministers were responsible to the Dáil and the Public Accounts Committee for monies spent, and it would be the same for this money.