Lorraine Higgins (Labour) | Oireachtas source

This should reassure Senator O'Donnell and members of the public who have major concerns about the sale. It is not beneficial to anybody to be scaremongering about this. With this in mind I would welcome the establishment of an independent regulator to ensure that the interests of participants in the national lottery are protected. The regulator would also have the important task of ensuring that allocations to good causes are maintained as far as possible so that they can continue doing their great work. There have been calls, with which I agree, for greater transparency and accountability regarding which projects receive allocations. The appointment of a new regulator should help to allay any concerns in this respect amongst members of the public. I understand from figures being bandied about that the total revenue generated by the sale of a 20-year licence could be anywhere in the region of €400 million to €600 million, a considerable sum. Many sectors of Irish society will benefit from this and we will now begin to ease out of the economic handcuffs which have been placed on us.

The biggest project associated with the sale of the national lottery is the proposed construction of the national children's hospital, a project which holds a special place in the minds of many Government representatives and officials. The advancement of this project is essential for the many young children who will require attendance at this facility and will be a cause of relief to many Irish parents when such a first-class medical facility is available here. Over the years Irish citizens have been promised that this hospital would become a medical feature of this country. One of the prime achievements of this Government will be the delivery of this project. Without the ability to liquidate the value in this licence this project would remain on the back burner. That is a reality. Once we have the money which comes from the sale of the licence let us ensure that the construction phase of this hospital follows immediately. I urge the Minister for Finance to be particularly mindful of that because it is essential that we get the benefit from the liquidity associated with selling the licence. Not only will thousands be engaged in the construction of the project but the multiplier effect will give a great impetus to the local economy, giving it a much-needed shot in the arm as a consequence of increased spending power.

The national lottery plays a very important philanthropic role in Irish society and we cannot forget that. When the lottery was first set up in the recessionary 1980s its original purpose was to support good causes without putting further pressure on our tax system. Since its inception in 1986 nearly €4 billion has been raised through it for deserving causes which means that almost one third of every euro spent on the national lottery was donated to good causes. This is a powerful example of the American adage "pay it forward" working, as many thousands of people and organisations have benefited from its existence. A total of 30% of the €4 billion raised has been given to projects in the youth, sport, recreation and amenities, health and welfare, arts, culture and heritage spheres. These are areas which could not prosper without special delineation in the allocation of lottery money. Galway organisations were allocated €230,000 in 2012 in lottery grant aid. I profusely thank the national lottery for this.

I welcome the Minister for Public Expenditure and Reform, Deputy Howlin, to the House. I commend him on clarifying this point in section 41 of the Bill which provides that money should continue to be paid to good causes in the same categories as have been the case to date. Most Members of this House will give this a huge welcome. It will come as a relief to the recipients of lottery grant aid. This Government should ensure that these social dividends flow. I thank the Minister for making sure that this was part and parcel of the Bill. As a proviso, however, I urge that legislation be put in place for a percentage to be paid to good causes so that they have certainty in this regard and are not fearful of a dip in percentage donations commensurate with any dip in profits in the same year.

Despite our economic recession, sales of lottery tickets have remained robust. In 2011, sales amounted to more than €761 million. These figures and the enduring popularity of the lottery will ensure we attract the highest and best bidder.

We have seen from our near neighbour that the UK lottery has been run successfully for 20 years by a private company, Camelot, which donates 28% of its total sales to good causes. This displays that a private company can work in harmony with the interests of the Irish people while operating the national lottery licence.

I commend An Post, its employees and agents at this juncture for the fantastic job they have done since the inception of this lottery in helping it grow and prosper, and with many philanthropic organisations throughout Ireland. This is the kernel of success of the project and I say, "Well done", to them. I am sure that should An Post be mindful to bid for it, there is nothing to stop it from becoming a possible bidder, also in conjunction with another bidder.

We and the Irish public alike await the outcome of the operator licence lottery later this summer. No doubt the Bill and the selection of the operator of the licence are matters of intense public interest and of interest to the Members of this House and the Dáil. In the interests of the taxpayers and the population in general, we must ensure we get the best price and the best possible terms for the awarding of the licence.

Whoever wins this licence to operate the national lottery, I wish them the best of luck and urge them to continue to help it grow and look to increasing the overall expenditure to worthy causes in the longer term. I wish the new regulator, whoever he or she will be, all the best in the position. I commend the Bill to the House.