Terence Flanagan (Dublin North East, Fine Gael) | Oireachtas source

The Bill provides for the national lottery licence to be sold to secure an upfront payment to help fund other much needed areas in the economy. The current licence operated by An Post expires at the end of June 2013, with the licence competition expected to open in the spring of this year.

The total revenue generated by the sale of a 20 year licence could be anywhere in the region of €400 million to €600 million. The awarding of a new licence will generate funds to benefit the community and allow for construction of the new children's hospital to begin. Without such revenue, it would be difficult to meet the financing requirement for this important and long overdue project with Exchequer funding alone. The sooner this project gets started, the better for all of the country's children. Hopefully, it will also create thousands of new construction jobs.

Nearly €4 billion has been raised through the national lottery for good causes since it was founded in 1986, with €1 billion of that generated in the past five years alone. In 2011, almost €232 million was raised for good causes, with nearly one third of every €1 spent with the national lottery donated to good causes around the country. This money has been distributed by the Government and many thousands of people and organisations have benefited as a result. Under the terms of a new operating licence, it is vital that the national lottery continue to thrive and to allocate money to those who need it the most.

Although the percentage of funds to be discharged to good causes is not referred to specifically in the Bill, section 41 requires that money be paid to good causes in the same categories as has been the case to date. The lottery should continue to support good causes and allocate substantial sums of money in line with current levels. Some 30.5% goes towards projects in the categories of youth, sport, recreation and amenities, health and welfare, and arts, culture and heritage. It also goes towards the promotion and survival of the Irish language, a matter that is close to my heart. The Minister of State, Deputy McGinley, who was present earlier, is working hard to ensure the survival of the Irish language and that this money is used correctly.

The lottery is increasingly popular. I am sure that all Deputies play, particularly when the prize money is at a high level. Despite our recent economic difficulties, considerable sums are being allocated to good causes. In 2011, sales amounted to more than €761.4 million. While this represents a decrease of 1.4% compared with 2010, it shows that sales remain robust in these difficult times.

The Minister has been working with Davy Corporate Finance to finalise the exact nature of the competitive process for the licence and the sale's associated timelines. Officials from the Department of Public Expenditure and Reform have been holding meetings with domestic and international parties that are interested in bidding for the licence. One reason for the high level of interest is the lottery's success since its inception.

I understand there are concerns about the sale of the national lottery licence, but it is vital that we generate revenue now. Now is when the money is most necessary, particularly if it is to be allocated to needy causes, including the construction of the national children's hospital. The delays in getting the children's hospital project off the ground are regrettable. Once the money becomes available, it is important that construction work get under way as soon as possible. When the Minister wraps up, will he provide further detail of the other projects to which money will be allocated?

It is important to remember that the asset of the national lottery itself is not being sold, only the licence to operate that asset. This should reassure those members of the public who have major concerns about its sale. With this in mind, I welcome the establishment of an independent regulator to ensure the interests of participants in the national lottery are protected. The regulator will also have the important task of ensuring allocations to good causes are maintained as far as possible so that they can continue doing their great work. Calls have been made for greater transparency and accountability regarding which projects receive allocations. The appointment of a new regulator should help to allay any concern in this respect among members of the public.

It is hoped that the selection of a bidder will be finalised later this year and that the 20 year licence will commence next year. An Post has operated the licence since the lottery was established and has done an impeccable job. When the chairman of the National Lottery Company, Mr. Donal Connell, appeared before the Joint Committee on Finance, Public Expenditure and Reform, he highlighted An Post's interest in bidding for the new licence, given that company's brilliant track record. It is important that whoever wins the licence, if it is not An Post, should continue that company's legacy and maintain the success of the national lottery.

The lottery in the UK has been run successfully by Camelot, a private company owned by the Ontario Teachers' Pension Plan, for almost two decades, with the licence coming up for tender at regular intervals. Camelot is licensed to operate the lottery for a third term until 2023 and the company's chief executive, Ms Dianne Thompson, has stated that she manages a high-profile national institution for the public good, with 28% of total sales donated to good causes. This example proves that a private company can work in the interests of the Irish people while operating the national lottery and continue in the same vein as An Post.

The Artane Boys Band of my constituency is famous for its many appearances at Croke Park, particularly for All-Ireland finals. As a former member and loyal supporter of the band, I know it has been supported considerably by the national lottery. Without that help, it would not survive. I congratulate the national lottery in this regard. Many Deputies would have similar stories from their constituencies of projects that owe their success to the good causes fund. Long may this continue.

I welcome the Bill. I am sure that whoever is selected will be the best operator, will have the best interests of the Irish people at heart and will ensure that funding continues for good projects through the country, as they would not survive without that money. I assure the public that the new regulator will ensure greater transparency and accountability regarding the funds used in this way.

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