Olivia Mitchell (Dublin South, Fine Gael) | Oireachtas source

I support the objective in principle of raising capital sums from State assets. If ever we needed to sweat our assets it is now in Ireland’s hour of greatest need, or what we hope is our greatest need. I am conscious that we are coming under a certain amount of pressure from the troika to get on with the sale of State assets to which the previous Government committed. The troika must be conscious that the timing of the disposal of assets generally, not the lottery in particular, but of any asset, is crucial to its outcome and success.

As I understand it, in this case and probably in all cases of asset disposal, the proceeds will go at least indirectly towards paying down debt. We also have approval from the troika to use at least half the funding in job creation measures. It is only through getting people back into jobs that we will have any hope of paying down and keeping down our debt in the long term. As others have stated, some of the proceeds at least will go towards funding the badly-needed new children’s hospital. That in itself will be a major construction project with a significant and welcome employment content. It will be most welcome in an industry that has been devastated by the recession.

While I support in principle the concept of raising funds by way of a long-term licence, I have some concerns about the fact that we are giving a licence at the same time giving the opportunity for the exploitation of the Internet for the first time not just to buy tickets for existing games, but also for new and possibly lucrative new games. The potential has not been explored to date by An Post, perhaps because it is precluded from doing so by the legislative arrangements governing the lottery. Internet potential is being specifically opened up now. The Minister said some time ago that it is being done specifically, understandably, to make the lottery more attractive to potential bidders. My concern is that if we offer a 20-year licence at a time when we have no idea how lucrative the Internet games might be, that if they turn out to be successful beyond our wildest dreams, we will feel aggrieved that we have possibly undersold the present day value of a 20-year flow of substantial income. Perhaps it would be more prudent to opt for a slightly shorter period, for example ten years, to give us an opportunity to gauge the potential of greater Internet usage by the national lottery.

I am fully cognisant of the need for a capital lump sum and of the need to pay down debt, but I am also cognisant of the need for an annual income that would help close the €15 billion deficit that is dragging us down. It is an important judgment call for the Minister to make the choice between the certainty of a substantial upfront payment and the possibility of a substantial new flow of income as a result of more successful games through the use of the Internet and a greater flow of income.

I hope the Minister has access to the best advice and expertise as well as knowledge of the experience elsewhere in determining the minimum acceptable tender in these slightly unknown circumstances. Ideally, in a perfect market, and assuming a sufficient number of tenderers who are familiar with Internet potential, the tendering process itself should throw up the best price, factoring in the potential, if any, of enhanced Internet usage. I hope that will be the case.

I am also conscious that in a sense what is not in the Bill is of more intense interest to Members than what is in the Bill. I find that somewhat frustrating. I understand that many of the issues in which we as politicians are interested relate to the contract between the regulator and the prospective operator and are not matters for the Oireachtas but, nevertheless, they are issues that have been discussed by others. I refer, for example, to the anticipated upfront value that is being sought from the sale, the percentage that will go to prizes and good causes, as well as the agent’s remuneration and the profits for the operator.

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