Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Senators Ward, Currie and Carrigy in particular for affording me the opportunity to again consider the national lottery, its contribution to good causes and how it might evolve and develop in the future. Since its inception in 1987, though good times and bad, the national lottery has continually provided a steady stream of funding for good causes in the areas of the arts and culture, sport and recreation and various voluntary, community and local activities.

I will not go through all the detail that was mentioned in February, but some key highlights are worth mentioning. In 2021 the national lottery contributed €254 million to good causes. The total expenditure on those causes was €425 million. In 2022, the contribution of the national lottery is estimated to be €290 million. This will amount to an aggregate €453 million for those good causes. While we still have several months to run until the end of the year, a healthy increase of 14% is estimated this year in national lottery funding for good causes. Among the several beneficiaries in 2022 will be: artistic endeavours supported by the Arts Council; Irish language support schemes; sporting bodies, sports and recreational facilities and projects and activities supported by Sport Ireland; private housing grants; the Heritage Council; youth organisations and services; the senior alerts scheme; the community and voluntary sector; the Society of St. Vincent de Paul; and Protestant Aid.

There are different perspectives on the aims and approach of the Private Members' Bill before us. We all share a common appreciation of the value of the national lottery in funding good causes in addition to what the Exchequer contributes. Some good causes might have suffered even more during the financial and economic crisis a decade ago without the continuing support provided by the weekly purchase of national lottery products. We all want the national lottery to continue to make a contribution to good causes.

The Minister for Public Expenditure and Reform, Deputy Michael McGrath, commissioned Indecon to carry out a report on the current allocation of national lottery funding to and its utilisation by Departments. Among other things, Indecon was asked to: examine best practice in other jurisdictions; develop policy options to enhance the connection between national lottery sales and the allocation of funding to good causes; monitor and report on the impact of funding allocated; and identify new areas for funding allocations.Indecon also carried out consultation with various stakeholders in March and April of this year as part of its work. Indecon carried out an omnibus survey of the general population last November. It is expected that the final Indecon report will be available in the near future to the Minister for Public Expenditure and Reform for his consideration. It is reasonable to assume that the findings and implementation of recommendations of the Indecon report will help secure and consolidate public support for and confidence in the national lottery as a vehicle for raising valuable funding for good causes in Ireland. Full consideration of the report could also provide a useful basis for the consideration of any legislative initiatives regarding the national lottery.

It is also worth referring to the prospective establishment of the gambling regulatory authority which I think is of relevance in this context. The gambling regulatory authority, which is to be established under the prospective gambling regulation legislation, will operate as an independent regulator under the aegis of the Department of Justice. It is intended that the authority will regulate gambling, gaming, and lottery services by both the commercial and non-commercial providers of such services, including their advertising, in order to achieve a high degree of compliance with the gambling regulatory legislation.

The process of appointing a CEO designate for the gambling regulatory authority is in train and it is hoped that a successful candidate will be identified in the coming months. The pre-legislative scrutiny phase was completed earlier this year. It is also expected that the Bill to establish the gambling regulation authority will be published after the summer.

Of course, the national lottery itself is well regulated by the office of the Regulator of the National Lottery. The establishment of the gambling regulation authority of itself will help establish a level playing field for gambling activity in Ireland.

I must at this stage recall that in the debate last February I referred to certain legal hurdles that proposed legislation such as that before us today would have to get over. Legislation in this area would need to be compatible with EU law. Specifically, I instanced the challenge of addressing the issue of proportionality in justifying a complete ban on a previously legitimate and legal business activity that has been in place for 30 years or so. There would be a need to show overriding reasons to justify a complete ban as a non-discriminatory and proportionate means of achieving legitimate objectives in the public interest. It seems likely that some very considerable work would be necessary to mitigate and manage any legal risks that could arise in respect of legislation along the lines before us today.

The European courts seem to have been very strong in their view that raising public funds does not by itself constitute a legitimate reason for governments to take actions in regard to the rights of lottery competitors to trade. This is no small issue that will have to inform the drafting of legislation like that before us today.

In conclusion, it is not proposed that there would be any Government amendments put down to this Bill today. First, it is considered that much more work would need to be done on working through the various legal issues that would surround such legislation. Ensuring that legislation is robust and defensible against challenge is a fundamental feature of drafting and proposing legislation. Second, it seems prudent and appropriate that any initiatives in this area should be considered in the context of the prospective establishment of the gambling regulation authority. Engagement with the authority about the issues around the Bill before us today and about its objectives and rationale seems sensible. Legislation could well be enhanced by such engagement.

Finally, it seems worthwhile to consider how the findings and recommendations of the Indecon report might strengthen and reinforce the links between good causes and national lottery funding. We all wish to see that relationship maintained and supported.