Government plans to control funds held in dormant bank accounts is a cynical attempt to disburse the money for political gain, Fine Gael claimed today.
The party's Seanad community affairs spokesperson, Mr Joe McHugh said the move would also hamper the work of the voluntary and community sector.
"Years of good work in partnership at local level between community groups, the social partners and State agencies is being undermined by a cynical attempt by this Government to use this public money as a political slush fund," the Donegal senator said.
Last year, the Dormant Accounts Fund Disbursement Board (DAFDB) distributed €30 million of €175 million collected from dormant accounts held in financial institutions in the State.
Under legislation before the Oireachtas, the Government plans to assume control of where the funds are spent while retaining the DAFDB in an advisory capacity.
Mr McHugh said Area Development Management (ADM) boards which manage social programmes at local level, had been already been undermined by Government control and the DAFDB "now the faces the same fate".
The move will also add layers of bureaucracy to the process slowing disbursement by complicating assessment procedures.
The Government is also looking forward to a payout from unclaimed life assurance policies thought to be worth €10 - €40 million. The money will be also spent on voluntary and community projects in consultation with an independent board.