Brian Lenihan Jnr (Dublin West, Fianna Fail)

It is wisely not doing so because it would lead to a lot of unemployment, both among bookmakers and employees in online businesses that have located in Ireland. Fine Gael is prudently withdrawing from that proposal.

The difficulty with the amendment to which Deputy Hayes spoke is that I am advised there are difficulties associated with putting in place a very high license fee. The Deputy referred to Gambia and other exotic locations. Some of the locations are within the European Union. In drawing up legislation in this area, we must be conscious of the various freedoms that apply within the Union. If one introduced a very high licence fee, it could be deemed restrictive on trade grounds in the context of a Single Market. For example, a licence fee of €5,000 for a company that may take only a handful of small bets from Ireland could be deemed onerous. The Commission is always mindful that member states cannot put in place provisions that could be regarded as disproportionate.

This area could be re-examined in the context of the betting legislation. The essential legal technique being used in this case is to provide that an Internet betting facility provider must register as a bookkeeper here. Thus, the traditional bookmakers legislation, which applied to the mainstream bookmaker, is extended to the Internet scene. The devising of legal formulae to provide for this is quite difficult. We must be very careful about how we do so. It is a matter to which the House can return in the context of the bookmakers legislation, which will be essential before the 1% charge comes into force.

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