Dormant Accounts Cash To Be Shared

Cash from UK bank accounts that have been untouched for many years is to be withdrawn and shared out - with NI receiving up to £20m initially.

The Stormont Finance Minister Sammy Wilson today published a consultation paper on the establishment of local spending priorities for the dormant accounts scheme.

Speaking on the BBC's Good Morning Ulster today he said: "It is estimated that there will be in the region of £10m - £20m available in the first year of the scheme with an anticipated several hundred thousand pounds available each year thereafter," explaining that 'dormant accounts' in a bank or building society account are ones that no money has been put into or taken out for at least 15 years.

Encouraging a wide range of responses to the consultation of spending NI's share, Mr Wilson said the aim is to establish spending priorities to specifically address the needs of the people of Northern Ireland.

"It will benefit the community under the broad heading of social and environmental purposes, while ensuring that the right of the account holders to reclaim money remains protected," he said.

"A particular issue in Northern Ireland since the inception of the National Lottery has been the ethical difficulties that some groups have had with seeking access to funds generated by gambling.

"One of the questions being asked in the consultation exercise is how best we could accommodate such organisations."

The distribution of the surplus assets from the scheme is expected to commence during 2010. The consultation will last 12 weeks until the end of October.

The initiative comes two years after HM Treasury introduced a draft Bill to the Houses of Parliament, which sets out the provisions for establishing a UK Dormant Accounts Scheme.

It provides a mechanism for dormant bank and building society accounts to be reinvested back into society across the UK for social and environmental purposes, whilst still maintaining the rights of customers to reclaim their assets at any time.

Under the terms of the legislation, the Stormont Executive may set its own priorities for spend in Northern Ireland under the broad heading of social and environmental purposes.

Copies of the consultation paper are available on the DFP website: www.dfpni.gov.uk/consultation-zone.htm

(BMcC/JM)