Brian Lenihan Jnr (Dublin West, Fianna Fail)

Yes. Section 50 provides for the taxation of bets that remote bookmakers enter into with persons in this State. This means, for example, that a business that engages in online bookmaking and which accepts bets from individuals in this country will be liable for a betting duty on those bets, irrespective of where that business is based. The existing betting duty of 1% is being applied to such bets.

The section also provides for the taxation of remote betting intermediaries. These operations, which are generally known as betting exchanges, facilitate clients in entering into bets with one another and charge for this service. A new duty, which will be called betting intermediary duty, will be charged on commission earned from persons in this country at a rate of 15%. Excise duties are also being applied to the granting and renewal of remote bookmakers' and remote betting intermediaries' licenses. The betting (amendment) Bill being drafted will establish the statutory framework for these licences.

Many Deputies in this House used the opportunity afforded by Committee Stage to welcome these provisions, and I am glad we appear to have cross-party support in an area that has thrown up many logistical challenges for my advisors and the Attorney General.

Section 50 provides for the repeal of the provision in the Finance Act 2009 that allowed for an increase to 2% in the rate of betting duty subject to ministerial commencement order. The Deputies amendment is seeking to remove this element of section 50 and effectively keep in place the possibility of the Minister raising the betting duty to 2%. My decision to repeal that provision is simply based on the practicality of the position we are in. I do not envisage a scenario in which the 1% rate could be raised to 2% given the obvious pressures on betting shops across the country. We have seen significant job losses from shop closures, and one way of ensuring further job losses would be to move to a rate of 2%. Further shop closures have been flagged for later this year, even without the rate increase.

The prospect of a rise to 2% prompted significant levels of correspondence from staff working in betting shops across the country who would be worried about their jobs if the increase were to occur. Most of the letters were forwarded to me by Deputies of all parties and virtually all constituencies. That significant job losses have occurred, even without a move to 2%, should inform Deputy Barrett of what is appropriate in this instance.

Jobs in the betting sector are as important as jobs in the horse-racing sector. My approach has been to move towards a level playing field in a way that widens the tax base but protects employment across the betting and horse-racing sectors. This is a balanced approach that should be welcomed by the House. If a future Government decides the betting duty should be increased, it can introduce a legislative change to that effect in the finance Bill.

Amendment, by leave, withdrawn.

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