Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Senator Whelan for raising this matter and giving me an opportunity to respond on behalf of my colleague, the Minister for Public Expenditure and Reform, Deputy Howlin, who is unable to attend. I will begin by giving the background to the sale of the national lottery licence. In view of the prevailing economic challenges, the Government decided to explore the opportunities presented by the expiry of the national lottery licence, and agreed in April 2012 that there would be a competitive process for the award of the next licence. The key drivers were to yield up-front revenues for the State to fund projects such as the Wild Atlantic Way, the 1916 commemorations, the National Sports Campus and the new national children's hospital and to strengthen annual revenues for good causes, which will benefit worthwhile projects throughout the country for the next 20 years.

The National Lottery Act 2013, to which Senator Whelan referred, provided for the holding of a national lottery on behalf of the Minister for Public Expenditure and Reform, the establishment of the Office of the Regulator of the National Lottery and the definition the functions of the regulator. The overarching function of the regulator is to ensure the national lottery is run with all due propriety, the interests of participants in the national lottery are protected and the long-term sustainability of the national lottery is safeguarded. Subject to this, an important additional function is to maximise revenue for good causes. The national lottery provides funds for good causes in accordance with the National Lottery Act 2013. The areas to be funded are set out under section 41(1) of the 2013 Act, which states:

Moneys paid into the Central Fund pursuant to section 44 shall be applied for the purposes of such one or more of the following, and in such amounts, as the Government may determine from time to time:(a) sport and recreation;

(b) national culture and heritage (including the Irish language);

(c) the arts (within the meaning of the Arts Act 2003);

(d) health of the community;

(e) youth, welfare and amenities;

(f) natural environment;

(g) such other objectives (if any) as the Government may determine from time to time.

The reference to "natural environment" was added in the 2013 Act.

Funding is provided by the Oireachtas, in accordance with the Act, through expenditure subheads which form part of departmental programmes. For over a decade, the total allocation for these subheads has exceeded the amount available from the national lottery. These subheads are described as being part-funded by the national lottery. The balance of the expenditure allocation for the subheads comes from normal Exchequer sources such as tax revenue or borrowing. Senators may wish to note that a breakdown by Department of all the expenditure areas supported by the proceeds of the national lottery is set out in Appendix 1 of the annual Revised Estimates for Public Services 2015, which is available on the website of the Department of Public Expenditure and Reform.

During the debate on the National Lottery Bill in 2013, the Minister for Public Expenditure and Reform accepted an amendment proposed by Deputy Maureen O'Sullivan and supported by others to include the "natural environment" as a category that could benefit from lottery funding for good causes. As Senator Whelan has said, lottery money has not been applied to this area to date. The Government's response to proposals submitted in the future for lottery funding for the natural environment will take account of the level of funds available for good causes in the relevant year and the impact it would have on other areas already in receipt of lottery funds. It is important to note that if national lottery funding is provided for the natural environment, corresponding reductions will be required in other areas which are currently in receipt of such funding. Accordingly, the reallocation of funding to support the natural environment at the expense of one or more of these other sectors can only be undertaken following careful reflection. The Minister for Environment, Community and Local Government is aware of the position and we are keeping the matter under review.

I would like to draw Senator Whelan's attention to the fact that since 2011 some €259 million has been disbursed to the environment sector from the environment fund. A further €146 million, which has been provided to the environment sector by the Department of Environment, Community and Local Government through Exchequer-voted expenditure, can be added to this. In light of the challenging budgetary context in which the Government is operating, the Minister for the Environment, Community and Local Government considers that the allocation of such a considerable amount of funding to environmental initiatives represents a commitment to the environment sector. Senators will be aware that funds for good causes have been in decline in recent years. It is hoped that this trend will be reversed and there will be a growth in lottery sales in future years, as this would provide more revenue for good causes. The question of applying funding in the area of the natural environment could be reviewed again at that stage.