By Paul McGill from NICVA
Published on 28 Mar 2007
Millions of pounds of money lying in bank and building society accounts should be used for charitable purposes rather than boosting bank profits, NICVA said today.
NICVA welcomed proposals issued today by the Commission for Unclaimed Assets to use dormant account money to help disadvantaged communities.
"However, we want to avoid more bureaucracy and so not support the proposal to create a new Social Investment Bank," said Paula Reynolds, director of member services at NICVA. "The best thing is to give the money to existing funding bodies. They already know where the greatest need exists and can ensure money is well spent."
Unclaimed assets are made up of old accounts that customers have forgotten about and it has been estimated that there is £400 million sitting in them in the UK as a whole.
"NICVA believes that the customers should always be allowed to claim the money back from these dormant accounts, no matter how many years it has been sitting in them," Ms Reynolds commented.
"But it is wrong that banks and building societies should be able to make profit from money they do not own. Many countries give the money to charity and we should do the same. NICVA supports the idea of giving grants to charities that are meeting the needs of people and communities suffering from poverty, poor health, lack of educational qualifications, housing they cannot afford and other disadvantages."
Notes to editors
A report in 2004 recommended that government should create a dormant accounts fund in Northern Ireland.
In the Republic of Ireland the Dormant Accounts Fund allocated 60 million euros in the first round of funding to people affected by economic, social or educational disadvantage and people with a disability.
For more information contact Paul Mc Gill at NICVA, tel: 028 9087 7777; mobile: 0772 1746 805.
The Commission's report and press release are on www.unclaimedassets.org.uk.
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