Dormant accounts article - New Start online magazine
It was heartening to learn last week of the £330m that is to be liberated from dormant bank
accounts in Great Britain and redistributed to organisations tackling social injustice throughout the
country. Cash windfalls are hard to come by these days and those working to combat, for example,
homelessness or poverty are most welcome to this one.
However, it must have left a bitter taste in the mouths of Northern Ireland residents to learn that
they will not experience the benefits of the Dormant Bank and Building Society Accounts Act 2008
due to the absence of a funding mechanism. The Department for Digital, Culture, Media & Sport
confirmed that £10m has already been made available, with a further £9.2m obtainable over the
next two years; however, the inability of the political parties to form an executive government will
prevent any of that money being distributed.
This comes after Richard Ramsey, Chief Economist at the Ulster Bank revealed that the third sector is
coming under increasing pressure due to cuts in public spending, and that 60% of its leaders expect
it to shrink over the next three years. Northern Ireland has not yet felt the full impact of the Tory
austerity policy but most people working in the community & voluntary sector would agree: it’s in
the post.
NI Fundraising founder Neil Irwin commented: "It is a disgrace that not one penny of dormant
accounts funds has been spent in Northern Ireland because the Northern Ireland Assembly has not
agreed a delivery mechanism in the nine years since the Act was passed. Four Executive Ministers,
Sammy Wilson (DUP), Simon Hamilton (DUP), Mervyn Storey (DUP) and Máirtín Ó Muilleoir (Sinn
Féin) have announced the scheme on four occasions in that time for distribution, but still no scheme
has been established. What is key now is that the charity and social enterprise sector in Northern
Ireland should have a new opportunity to consult on both urgent and longer-term priorities for
spend. In my opinion the money should be handed over to an intermediary funding body to consult
and agree priorities within a short timeframe.”
Currently, the Northern Ireland Civil Service (NICS) is the de facto government since the collapse of
the executive a year ago, and many would argue that it has the power to allocate these funds as it
has done in other areas for the last twelve months. At the very least it could consult about the
interim solution proposed by Neil Irwin. The head of NICS, David Sterling, recently spoke publicly
about the position they find themselves in – one where the various departments, Health in
particular, are in need of reform; but reform requires investment. We are now approaching a point
in time at which the NICS can no longer sanction the apportioning of public funds. And whilst some
might be sympathetic to the plight of NICS, spare a thought for the most vulnerable in Northern
Ireland who continue to be subjected to brutal cuts. As ever, it is the community and voluntary
sector who pick up the slack when government fails.
The main political parties have slung mud in predictable directions in an effort to distract from the
shambles: the Democratic Unionist Party has blamed Sinn Féin for dissolving the Assembly in the
first place; Sinn Féin has blamed the NICS for its failure to act. Notwithstanding the political theatre,
and putting aside the ethics of a law enabling government to sieze money that it does not own, so
long as the legislation exists, the money could definitely be put to constructive use. Charitable
causes could certainly benefit but it could also help finance innovation through social enterprise,
which is still sorely lacking in the north of Ireland. It could “address systematic challenges and build a
strong resilient voluntary and community sector,” as outlined by John Tizard in New Start last week.
Some have even suggested that it could rest in a trust fund, earning interest which could help the
needy in perpetuity. But until the political situation changes in Northern Ireland, the debate about
what the money should be spent on has, sadly, become moot.