Catherine Noone (Fine Gael) | Oireachtas source

We do not have a choice about putting it to tender. We do have a choice in that the State may set the terms of the competition and the licence, including the duration of the licence and the financial arrangements. The Bill represents a sensible proposition because it ensures an upfront boost for the taxpayer and additional moneys throughout the duration of the licence. It also creates a framework which allows the State to obtain the best possible bid and therefore derive the greatest benefit. Like other speakers I have concerns about the large number of companies in the country in a position to tender for the licence. I am interested to hear the Minister's comments in this regard.

The terms of the licence are also included in the Bill. Under the Bill the licence should be published and publicly available, apart from commercially sensitive information. It is expected the licence will be extended in duration from the current ten year period to a 20 year period, an upfront payment will be made by the new operator to the State and the current management fee will be replaced by an operator's fee, producing more company profits. I welcome these moves. The 20 year period adds stability and this is important because presumably we will have a number of bidders. I am interested to hear the Minister's comments on potential bidders.

The rationale for such an approach is to help generate funds to build a new children's hospital. No official figure has been adopted, although figures of between €400 million and €600 million have been reported in the media. In a way, the need for the children's hospital is an emotive issue and, in fairness to those with views opposing the proposal, we must not be swayed by this emotive answer and we must be sure it is definitely the right decision for us. I am sure the Minister is sure, but in any case we should address these points.

The Bill allows for the possibility of the national lottery being managed by a private operator to allow for online sales of lottery products and sets out the key principles for the regulation of the national lottery. I share the concerns of other speakers with regard to opening up gambling. I am sure the Minister intends to answer these concerns. Senator Quinn referred to legislation from the 1930s. Perhaps in keeping with this proposal we could introduce a framework to protect against the flourishing of gambling in the country to a rate which is out of control.

This does not preclude An Post or the State from bidding to operate the national lottery, although An Post would be disadvantaged on an international level with regard to its ability to tender. It is important to state it is not precluded from tendering in the process. After the bidding process has finished the current operator could be the future operator. It is what I hope for, but I am not sure how realistic this hope is. I am keen to see a sense of flexibility. If the national lottery operator manages to increase profits on non-core items or sidelines in an unforeseen way, the State should benefit commensurately from this and we should keep some level of control in this regard. I thank the Minister for his continued work in this area and I commend the Bill to the House.