Seanad debates

Wednesday, 23 May 2012

6:00 pm

Photo of Ivana BacikIvana Bacik (Independent)

On a more serious note, I take issue with Senator Jim Walsh's comments about the Minister. I thought the Minister's response to the motion was superb. He set out clearly and fairly the position on the tendering process for the licence to operate the national lottery for the period 2013-33. As Senator Cáit Keane said, this is not about the sale of a State asset, rather it is about a lease or licensing arrangement. It is about a change to the terms of a licensing arrangement. An Post holds the licence which was put out to tender in late 2001 under a previous Government and which An Post won following a competition held between 1999 and 2001. That licence is due to expire at the end of June 2013. Clearly, it is a matter for the Government to put it out to tender again. It is in its power to do so and it will remain in its power at the expiry of the next licence. Therefore, we will retain ownership of it. Essentially, it is a lease. It is like a landowner who leases his or her farmland for a period of 20 years for somebody else to work it but on terms and conditions that are suitable and appropriate to the landowner. These terms can change. The Minister clearly explained the two changes he proposed would operate in the award of the next licence. From the end of June 2013, the next term will run for 20 years and there will be an upfront payment. That is the quid pro quo. It is welcome that there will be an upfront payment, even though the connection with the children's hospital has been dismissed out of hand as a red herring. I take serious issue with this. The Minister has made a clear link and the upfront payment will go towards meeting the building costs of the National Children's Hospital, a project to which we are deeply committed. An Post may tender for the next licence and may win it, but we cannot prejudge the outcome. The Minister has said there were other tenderers on the last occasion and, no doubt, there will be again.

As legislation will be brought before the House to provide the framework for the award of the next licence, we will have an opportunity to debate the terms of the tendering process and the framework to be put in place. If the Minister was present, I would say this directly to him, but I say to the Minister of State, Deputy John Perry, that I hope the debate on the legislation will commence in this House. Given that we have had a debate on the issue, it would be appropriate for us to continue it by looking at the terms and the arrangements for the award of the next licence. The most important condition, apart from the two I have mentioned - the length of the licensing term and the up-front payment - is that there will be a fixed percentage of annul turnover of 30.5% for good causes. That will not change. That was the percentage allocated for good causes in 2011. Senator John Gilroy and others have outlined in detail the good causes that have benefited from that financing and will continue to benefit from it. There should be no change in that regard. The ultimate point is that the right to award the licence will remain with the people. This is a temporary arrangement and a continuation of the process already instituted. We are coming to the end of the term of the licence held by An Post since 2001.

The Minister has clearly said he is open to accepting amendments to the Bill, the debate on which I hope will commence in this House. He is also open to suggestions on additional ways to raise resources. I think it was Senator Marie-Louise O'Donnell who referred to the possibility of holding a specific draw for the children's hospital. I thought that was an excellent suggestion.

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