Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for the opportunity to speak on this Bill. Given the difficult financial straits in which this country has found itself recently, all avenues must be explored in terms of finding the finance necessary to get the country back on its feet. As part of this, a number of initiatives were identified which could produce revenue, while ensuring that valuable assets were retained in State ownership. The decision to hold a competition for the next national lottery 20-year licence was among the novel funding avenues identified and I must compliment the Minister for Public Expenditure and Reform, Deputy Howlin, on bringing this idea to fruition in a speedy manner.

The new licensing arrangement is timely as new legislation was needed in any event to take account of new regulatory functions. I understand that following the hoped-for passing of this legislation, the licence competition will be launched very quickly with a view to having the new licensee in place next year. However, while we need innovative solutions, given the difficult times we find ourselves in, it is imperative that we do not diminish the ability of future generations to benefit from assets already owned by the State. The sale of the national lottery licence is an option which can have the twin effects of raising money while not selling off assets.

While I have no issue with the selling of the national lottery licence, I do have concerns about the sale of another asset, namely, Coillte. I hope the Minister takes on board concerns regarding the forestry industry, in particular, in considering the sale of that State asset. We must do our best to protect that industry and the jobs within it. It is important that we listen to all of the stakeholders in the debate on the sale of a State asset such as Coillte so that we do not end up regretting it in years to come.

One concern I have regarding the Bill relates to securing the future of the many small retail stores that are the lifeblood of rural communities and which need to retain their margins on scratch cards and other lottery products. At the moment, such small stores receive a margin of 6% on their sales but there is no provision in the Bill to secure that margin for the next 20 years. Instead, the issue is to be addressed in the licence but ensuring that this margin is retained is crucial for the future viability of such small stores.

Another element that must be safeguarded is the funding that goes to good causes. In 2011, sales of national lottery tickets generated €761.4 million in revenue, with over €422 million of that going on prizes and over €231 million going to good causes. That is a very substantial figure which is a tremendous boost to voluntary groups all over the country. I note that the protection of this funding is to be provided for in the licence as opposed to the legislation. Groups such as RGDATA have called for the percentage of the takings to be distributed among good causes to be retained. Reducing the amount of money going to good causes would make buying lottery products less attractive and would eventually result in a decline in sales, which would be counter productive.

The issue of Ireland's love affair with gambling and the trouble that our gambling gene has caused to date, thanks to the reckless gambling indulged in by certain elements of the banking sector, has been widely discussed this week. Addiction is ruining many lives and many families. A family member's addiction to gambling can cause incomprehensible misery. We must ensure the licence offered to any new licensee has strict regulations attached to ward against pushing gambling products in the direction of already vulnerable people. For example, the availability of national lottery games in pubs or other places where people interact with alcohol should be prohibited.

The economic necessity that prompted the sale of this licence is the need for a new state-of-the-art children's hospital for the nation. The children of the nation deserve such a hospital, which should become available to the current generation of children rather than the next generation. That is why it is important that money raised from the sale of this licence is used in the most effective manner to deliver this key piece of national health infrastructure in a timely manner. This new hospital will be of great benefit to the sick children of the nation and their families and it is about time that all of the various paediatric services are brought together in one cohesive setting. Of course, the building of the new hospital will also be of benefit in terms of the jobs that will accrue. A report from the ICTU has suggested that up to 2,500 jobs could be created during the construction phase of the children's hospital.

It is important to remember that this is not about the sale of the national lottery but the sale of the licence to operate the lottery for a defined period of 20 years. It is a good mechanism for freeing up money for the State coffers at a crucial juncture in our history, and by ring-fencing the money for an important national project, we can all look forward to twin benefits from this legislation.

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