Mary Ann O'Brien (Independent)

Yes. I second the motion. All I have to say in respect of Senator O'Donnell's contribution is "Follow that". I thank the Senator for the work she has done in bringing this motion before the House. I welcome the Minister and I hope he will be in a position to address our concerns in respect of the proposed sale of the national lottery.

When times are tough it is all too simple for governments to take the easy option, the one which generates much-needed revenue to cut the gap between what we spend and what we receive and which, at the same time, inflicts little or no pain on the electorate. It is for this reason that the prospect of selling the family silver always arises in the midst of a recession. Is this a good time to sell when, in the context of the economy, we are at the bottom of the market? It is generally accepted that one should buy at the bottom of the market and sell at the top. The national lottery is a profitable institution and is not draining the State of resources. What research has been undertaken with regard to the sale of national lotteries in other countries? How was revenue maximised from such sales?

Our national lottery is most certainly not at the top of the market at present. The An Post National Lottery Company's results show that recent sales have decreased by 1.4% in comparison with the figure for 2010. The company's sales stand at €761 million in what it describes, in light of a 5% decrease in footfall, as a very challenging retail environment. In the current economic climate, there is a need for the Government - now more than ever - to get more for less. If we are going to sell this national, income-producing lottery, then we must obtain cast-iron assurances that we will get a good price for it.

The second issue which it is exceptionally important for the Government to address is the impact of the sale of the national lottery on the small news agencies, post offices and convenience stores throughout the country. We are all only too well aware of the tough economic climate in which small business people are operating at present. The national lottery machine in local shops acts as a critical driver of footfall and increases the amount of business transacted. When the national lottery licence is sold to a private bidder and as is the case with any commercial enterprise, an assessment will be carried out in respect of maximising the profitability of the operation of the licence. As has been indicated, a minimum of 30% of the revenue of the national lottery will be ring-fenced by the Minister in respect of charitable causes. That is the same amount that was donated to good causes in 2011. We welcome the Minister's commitment in this regard because it relates to a vital source of community funding and reflects one of the founding principles of the national lottery.

I understand that the relevant legislation contains a requirement to the effect that a minimum amount of the revenue received from the sale of national lottery products, some 40%, be returned to the purchasers in the form of prizes. This means that the remaining 30% of revenue is split between meeting the operational costs of the national lottery and paying the profits of the company charged with running it. Therefore, it stands to reason that the actual impact of the sale of the licence will be on the operational side. As a result, the operator will seek to reduce the margin which small retailers receive in order to increase its own profits. This margin, which currently stands at 6%, makes a valuable contribution. The Minister should bear in mind that in 2010 revenue from lottery sales contributed €48 million to the overall profits of small local newsagents, post offices and shops. Many of these businesses are already teetering on the precipice of financial sustainability and they have little or no bargaining power when it comes to negotiating margins in respect of the operation of national lottery machines. I plead with the Minister that if he is going to sell the national lottery to put in place some form of safeguard in order to protect the margins of the local businesses that are the life and soul of our country.

When embarking on the process of selling the lottery, the Minister should bear in mind that the public's perception of it is that it is something of a slush fund used by politicians to finance-----