Brendan Howlin (Wexford, Labour) | Oireachtas source

Moreover, that word will be tested very quickly because, as Members will be aware on foot of the announcement made yesterday by the Minister for Health, the Government is now advancing this development and a project team has been appointed. I have no other money available for this purpose. The Government will build the children's hospital in the shortest possible time and the dedicated money for the project will come from this source.

I do not need to remind Senators of the difficult economic circumstances in the country. Given the present budgetary position, the Government must be innovative and creative when opportunities arise to generate money like this. It must establish how, in a country that is starved of capital, it can get at money to do things that are really important right now. It must so do both to generate the hundreds of jobs that will flow from this project and to have a flagship national children's hospital that it is hoped will serve both the State and the entire island of Ireland. It is to be hoped that even in the face of adversity and economic difficulty, it will be something of which this generation will be proud. Failure to think creatively about how the Government might find additional resources has a cost. That cost will be reflected in an inability to provide vital elements of social infrastructure for the people. Therefore, as I indicated, the Government has decided to take advantage of the opportunity presented by the timing of the lapse of the current licence to dedicate it in a different way to fund the children's hospital.

Recent years have seen a number of states and regions, to which reference has been made, make new arrangements for their lotteries. A number of jurisdictions are currently examining how best their state or regional lotteries can help to alleviate financial pressures. It would be remiss of Ireland not to take a similar approach. The Government is committed to doing the best deal for the State that can be done and, as I have noted, there are three key elements, namely, an upfront payment, the maintenance of confidence in the ongoing revenue stream for good causes, in which regard I can give Senator Norris my assurances, and continued public support for the role, ethos and integrity of the lottery. All these elements must be reflected in this process.

The original motion tabled this evening called for a reconsideration of the decision to allow for the sale of national lottery tickets via interactive channels. I am aware that a number of Senators rightfully have concerns with regard to this issue. Since its launch in 1987, the national lottery has been dynamic and it is essential that it continues to evolve in line with changed consumer patterns. Consumers now expect to be able to conduct their business online and the online element of the national lottery must be developed further. Incidentally, it is already in existence, as the lottery already has an online element. I note that when buying an airline ticket nowadays, I no longer go to my local travel agent but go online as a matter of course, and unless one wishes to impose a time limit whereby the national lottery will simply filter out over a timeline to the future, one must move towards the platforms people are using. However, this must be done in a regulated fashion, which is the reason I have devised and successfully recommended to the Government the establishment of a regulator to ensure it is done in a prudent way, and this should migrate to other channels. If this is not done, people still will gamble online but the benefits to the State in respect of good causes will be lost and a much less regulated environment will prevail than that being proposed by the Government.

The national lottery has a very strong record in respect of player protection. It will be ensured that these standards will continue to apply throughout the period of the next licence. This will be provided for under the terms of the licence itself and the new national lottery regulator also will have a key role with regard to player protection. Globally, lotteries are doing more business on the Internet. In the context of a 20-year licence, provision has been included in the new Bill providing for the sale of lottery tickets via interactive channels, as it would be a Luddite view not to prepare for the next 20 years. However, I stress that such games, which as I have mentioned already are available online on a pilot basis, will be rolled out in a way that will protect minors and vulnerable adults. In addition, experience in other jurisdictions, such as, for example, the United Kingdom, indicates the sale of lottery tickets on the Internet will be in addition to, rather than instead of, sales in shops and other retail outlets. It is imperative that the lottery is fully aware of the risk of problem gambling, and its approach to the suite of products it produces should reflect this. I will ensure both the licence under which the next licenceholder will operate and the office of the regulator, which will be established under this provision to enforce the licence, will have as a priority an exemplary approach to these issues.

I am particularly heartened to note that the lottery industry globally takes this matter very seriously and a number of proactive procedures are in place to address this problem and are being enhanced by reference to latest research.

A national lottery is in place to benefit the community and not in any way to harm it. I wish to see people continue to play the lottery, and as Senator Norris does, be successful occasionally. I wish him even greater success in the future. A large proportion of the population playing a little is the preferred model and one on which I intend to base the licence. It will be a condition of the licence to comply with strict codes and procedures regarding the area of problem gambling. I will seek to include in the licence particular requirements for the online environment. It is worth noting that online play does allow for a greater level of monitoring and a capacity to intervene to prevent problem patterns of play developing. I have examined international best practice to ensure that is the case.

Central to the success of the lottery over the past quarter of a century has been the provision of lottery funding for good causes. During the debate on the Bill in the Dáil, speakers placed great emphasis on the importance of the many projects, in all counties, from community health to sport, the arts and heritage, which have been helped by national lottery funding. It is intended that the next licence will continue to provide for the ongoing provision of a significant level of funding for good causes.

I note that a number of Senators have concerns about the provision for an upfront payment. I am pleased that we are agreed on the need to raise funds for the building of the new children's hospital. The motion tabled by the Independent group referred to substituting an upfront payment with a hypothecated lottery. I understand that would involve a dedicated weekly draw, which was explained to me by the Senator, to raise funds for the hospital. I have no doubt such a dedicated draw could well be popular and the motivation for such a proposal is well-intentioned. However, it is highly likely that such a draw would simply see players switching their usual spend on lottery products to one that would be dedicated to assist funding the hospital and, by definition, the other good causes would suffer. I want the hospital now. I want the money to build it now. I do not know how I could organise it by saying we would get a drip-feed of money on a weekly basis over the next 20 years. The cost of borrowing on that basis would be enormous. I need the money now. The country needs the hospital now. The way we have designed it is innovative to get an upfront payment from the next licence holder and to be able to dedicate that to such a fine and important cause.

The decision to provide for an upfront payment under the next licence was made after careful consideration. Unlike the alternative proposal which has been put forward, the Government's approach will ensure the raising of funds to allow us to proceed with the building of the hospital. The hospital will be built and will not compromise the flow of funds into the future for good causes.

The national lottery has been an outstanding success story for this country. I note the genuine concerns expressed by a number of Senators. I respect them and the manner in which they have voiced their concerns. However, I stress that the Government is committed to safeguarding the national lottery to make it fit-for-purpose into the future. No institution is caught in a time warp. We must allow for change unless we want the lottery to die. The Government is also committed to availing of the opportunities to ensure that the much-needed national children's hospital is built.

The Senators' motion does not take full account of the particular circumstances in which the Government has to make a decision regarding the next lottery licence. I hope I have set that straight. Such decisions involve choices. I am confident that the upcoming competition for the lottery licence is being framed to deliver the best result for the State. Reference was made to ¤500 million in the Senator's opening comments. She regarded anyone who would pay ¤500 million as a swagman.