Tom Fleming (Kerry South, Independent) | Oireachtas source

Since 1986, An Post has held the licence for running the national lottery. The company has been successful and competent in its management of the lotto and has at all times complied with regulations and conditions attached to the licence. The current management fee to An Post of €2.7 million is most reasonable and provides vital income to a semi-State body that is striving to maintain and enhance its services. Many post offices, especially those located in rural areas, are under review. The loss to an An Post of essential revenue from the national lottery management fee will have a domino effect on the viability of all postal services. In recent years, the first target of An Post management in any restructuring arrangement has been rural post offices. The closure of rural post offices is compounding the already dire circumstances in many areas which have experienced or are about to experience the closure of Garda stations and where pubs and shops are under threat, creameries have been centralised and small local schools are under pressure. Moreover, in many parishes GAA teams have been forced to amalgamate with neighbouring parishes to field under age and, in some cases, senior teams. This is a regular occurrence in rural areas, especially in County Kerry, and these factors are leading many communities to lose their identity and sense of community.

The proposal before us is akin to selling the family silver. Since its inauguration in 1986, the national lottery has been one of the most successful initiatives in generating much-needed funds that have transformed and revitalised organisations and voluntary groups throughout the country. It has provided facilities and services in sport, health, culture, etc., which provide immeasurable benefits to citizens.

It appears there is widespread worldwide interest in securing the national lottery licence, with international companies from Australia, Canada, Britain, Italy and elsewhere on the Continent willing to bid for it. It is imperative that An Post is given every opportunity and afforded a level playing pitch to allow it to compete actively for the new licence in any auction or bidding exercise. The national lottery and its staff have provided an excellent and efficient service since the 1980s and there is no guarantee a new operator would live up to the standards it has set.

Ireland's record in privatising State companies is dismal and we have clearly failed to learn the lessons of the Eircom disaster. The failed privatisation of Telecom Éireann, a company that was building an international quality standard in communications infrastructure and networks, is the main reason we have not provided an adequate standard of broadband in many areas. This failure is a major deficiency in our efforts to revitalise the ailing economy. The Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, expressed a similar view when speaking of the privatisation of Telecom Éireann.

The proposal to raise the minimum amount of funds allocated to prizes from 40% to 50% is unnecessary as the existing prize money offers an adequate incentive for members of the public to participate in the national lottery. An additional 10% of national lottery revenue should instead be added to the fund for good causes. Since 2001, more than €2.5 billion has been expended under the good causes provision. It is estimated that the new national children's hospital will cost €250 million. The funding required for the children's hospital could be allocated over a three year period under the current national lottery mechanism, thus resolving in a satisfactory manner the priority of providing the new facility while avoiding interference with the current lottery structure.

Increasing the number of outlets operating as lottery sales agents would provide a further boost to sales and enhance the viability of many of the small businesses that made unsuccessful applications to become lottery agents. The Internet accounts for only 3% of national lottery sales. While I accept the view expressed by previous speakers that promoting online lottery sales has a downside, we should nevertheless target the international market for online sales. The United Kingdom is on our doorstep and offers the potential to achieve a dramatic increase in sales. Many people with Irish connections reside in Britain and it constitutes a very large market. Marketing the national lottery internationally could increase the proportion of online lottery sales from the current level of 3% to between 15% and 20%. The additional revenue generated by these two initiatives could be ring-fenced for a three year period and used to fund the national children's hospital project.

The proposition set out in the Bill will be a mistake in the long term for a variety of reasons, not least because An Post's national lottery company will be wound up if it is unsuccessful in bidding for the national lottery licence. Such a scenario would be shameful. Those employed in the national lottery have given great service for 20 years and now face grave uncertainty. This, too, is a major factor which must be taken into account.

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