Oireachtas Joint and Select Committees

Thursday, 10 April 2014

Public Accounts Committee

Payments to Section 39 Companies: (Resumed) Rehab Group

1:10 pm

Mr. Liam Hogan:

We have had one board meeting since the CRC broke up. We still have the four members from the Rehab Group. We have two new members from the CRC. They are under administration and they have to provide two more members.

We had a board meeting because the annual lottery came up for renewal. It is a commercial lottery operating under the Gaming and Lotteries Act 1956. We had to have a meeting to prepare the chief executive to go before the judge and have the lottery agreed, and it was agreed. The judge made the comment that the documentation was excellent. It is agreed for another year. It is a year-by-year lottery. If we do not get that agreed, we are out of business. It is that draconian in terms of business under that sort of pressure.

One of the articles in the agreement on the lottery stipulates maximum administration expenses cannot be more than 40%. Therefore, 60% goes to the beneficiaries.

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