Seanad debates

Wednesday, 13 February 2013

4:40 pm

Photo of Eamonn CoghlanEamonn Coghlan (Independent) | Oireachtas source

In any event, I hope all Members have bought their lottery tickets because in one hour we will go into a draw. I remember when the then Minister, Donal Creed, introduced the national lottery in the 1980s. At the time, the funds were to go to sports and the arts. I am delighted to say that sport has definitely benefited throughout the years. In the London Olympic Games we saw the great success of Irish Olympians, with more Olympic medals than at any other time since 1956. Those athletes have benefited from the contribution from the national lottery.

A dedicated draw to benefit the national children's hospital simply will not work. As someone who has been involved with Our Lady's Children's Hospital in Crumlin since 1985, I know a dedicated draw would be objected to by every other charity in the country. A dedicated draw would be objected to by the citizens of this country because they would ask why they should spend their lottery money on it when taxpayers should be paying for it. I disagree with a dedicated draw.

The national lottery is not being sold. It is up for renewal and, under EU law, the State is obliged to hold a competition for the next licence. The national lottery will continue to be owned by the State through the Minister. Inasmuch as the lottery is held on behalf of the Minister, the goodwill and rights pertaining to the national lottery are vested in the Minister. After the licence expires, the national lottery will be run by the regulator or, where no regulator is appointed, by the Minister until a new licence is awarded.

What the Government is doing has been done successfully in other EU countries, such as the United Kingdom, France, Spain, the Netherlands and Sweden. Even in the United States, it has gone out to tender and been successful. We must think outside the box at this most difficult time. The Government is being creative, innovative and is creating an opportunity to generate additional financial resources to provide vital elements of social infrastructure for our population. Ireland is experiencing a difficult financial and economic challenge and because of this, the Government decided the licence must go to tender. In fact, it is not that the Government decided it because it is EU law. I am not sure what to believe of reports coming from the media of between ¤400 million and ¤600 million upfront payments to the State. There is a report in The Irish Times referring to ¤100 million but I am not sure what numbers to believe. I have faith in the Minister and what the Government is doing.

This is not a blindfolded quick pick or a lucky scratch card. This is a guaranteed lottery win for the State, on behalf of the citizens, to cash in on what we have built up for the past 26 years. It is not like our hard assets. If Senator Norris found out they were selling the Joyce Tower or the Cliffs of Moher to a commercial bidder, there would be uproar. This is a completely different situation. The money generated from the upfront payment will certainly give the Government the impetus to at least get the foundations of the new national children's hospital built. In the lifetime of this Government, when the lottery is sold and if the upfront payment achieves anything between ¤100 million and ¤600 million, at least it will be a down payment on the hospital.

The Bill repeals the 1986 Act and, in doing so, develops the legislation for the national lottery. However, it does not alter it significantly. The Bill will provide greater transparency about the licence and will provide an enhanced system of compliance and enforcement. The main changes implemented by the Bill are to provide for an independent regulator, which will be chosen by the Minister, to oversee the operation of the licence and competition for any new licence. This is done on behalf of the Minister. The regulator has investigative powers and a progressive series of enforcement procedures that can ultimately lead to a High Court action and the revocation of the licence.

Under section 9, the functions of the regulator are as follows: to license the holding of the national lottery and-----

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