Catherine Noone (Fine Gael) | Oireachtas source

I also thank Senator Marie-Louise O'Donnell and Independent Senators for raising this issue, as it is a good idea to debate it. The Bill is a practical and sensible solution for two reasons. First, it ensures an upfront boost for the taxpayer and will generate additional moneys throughout the duration of the licence and, second, it creates a framework which allows the State to receive the best possible bid and, as such, derive the greatest possible benefit.

As has been noted, the terms of the licence are not included in the Bill, although the legislation provides that the licence should be published and publicly available with the exception of commercially sensitive information. It is expected that the licence will be extended in duration from the current ten year period to a 20 year period, an upfront payment will be made to the State by a new operator and the current management fee will be replaced by an operator's fee which will generate greater profits for the successful company. These measures are welcome as a 20 year bidding period adds stability. It is also important given the likelihood that numerous bidders will seek the contract.

As the Minister noted, the rationale for the new approach is to help generate funds to build a new national children's hospital. While I accept that this is an emotive argument, assets are acquired and built up over time in order that they can be liquidated when money is needed. While it is a pity that we must sell the national lottery, it makes sense to do so in the current climate.

As official figures have not been provided on the revenue the sale will generate, I tried to get to the bottom of the issue. It appears the licence will generate between ¤400 million and ¤600 million for the State. Perhaps the Minister will enlighten us in that regard. Notwithstanding the final figure, the proposal to sell the lottery license remains a sensible one.

The legislation allows for the possibility that the national lottery will be managed by a private operator, permits online sales of lottery products and sets out the key principles for the regulation of the national lottery. For reasons outlined by the Minister, it does not preclude An Post or the State from bidding to operate the national lottery, providing only that a private operator may compete in the bidding process and thus ensuring an optimal outcome for the State. After the bidding process has been completed, the current operator may be awarded the licence to operate the national lottery.

I share concerns expressed by previous speakers about online sales of lottery tickets and I am heartened to learn that the issue is being examined. Gambling is a frightening issue and one on which we require a general strategy. While the national lottery is a form of gambling, other aspects of gambling are of much greater concern. I commend the Minister on his work and while I cannot support the motion, I thank Independent Senators for tabling it.