Seanad debates

Wednesday, 15 July 2015

Commencement Matters

National Lottery Funding Disbursement

10:30 am

Photo of Paddy BurkePaddy Burke (Fine Gael)
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I welcome the Minister of State, Deputy Simon Harris, to the House.

Photo of John WhelanJohn Whelan (Labour)
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I am pleased that my matter has been accepted and I am grateful to the Minister of State for attending to answer it. I am here to make an appeal on behalf of natural environment organisations that they would finally receive their fair share of lottery funding for the fantastic work they do the length and breadth of the country on a variety of community, conservation, habitat protection and wildlife protection projects. It is a very broad spectrum. Wisely, back in 2013, when the Government introduced the new National Lottery Bill, it agreed to an amendment to incorporate the natural environment as one of the six qualifying categories that could apply for lottery funding, along with other sporting and community categories. However, none of the bodies or organisations represented by the umbrella group the Irish Environmental Network, which is made up of over 30 different NGOs, has been able to secure lottery funding since. I know this funding is disbursed through up to eight different Departments, but it seems bizarre, to say the least, that while they have been able to put forward many projects of merit, deserving of national ottery funding and while this has been included as a qualifying sector, it has not been able to draw down any national lottery funding to date.I hope that can be put to rights in the next round of funding.

We have a difficulty in this country with what has been referred to as implementation deficit disorder. This can result from local resistance and suspicion, which is well founded in some cases, such as those in which State agencies try to impose structures and projects on the community. That is why I believe organic projects that are built by communities from the ground up, with local ownership and community buy-in, work very well. I am in favour of direct community input from the ground, in collaboration with State agencies, when work is being done in areas such as conservation, habitat protection, biodiversity education, eco-tourism, adding value to the landscape and protecting wild flora and fauna. It is estimated that this range of activity is worth up to €2 billion per annum to our economy. As I have said, it is spearheaded by bodies such as the Irish Environmental Network and Irish Rural Link. However, it has certainly been the poor relation in terms of lottery funding to date. I have seen successful projects on the ground in my own community organised by groups such as the Abbeyleix Bog Project, the Portarlington Community Development Association and the Mountmellick justice and environment group, which is inspired and led by the local Presentation sisters. These organisations have done great work to restore areas such as river walks and to reclaim bogs to make them available to communities to enjoy. Their work has climate change benefits and all sorts of ecological and environmental dividends. Communities are proud of these groups, which are spread across the country, and feel they have ownership of them. I would also like to mention the work that has been done at Fenor Bog in County Waterford, the Wexford Slobs and Wildlife Reserve, Clara Bog in County Offaly, the Ballybay wetlands in County Monaghan, the Cabragh wetlands in County Tipperary and the Ballyhoura Mountains in County Limerick.

If the Government takes the great opportunity it has to support such projects throughout the country, it will get a really good bang for its buck. Those who support this kind of community organisation really get good value. The dividend in terms of community buy-in, public participation and tourism, and the economic and environmental benefits, cannot be exaggerated. There is an opportunity to get good value for money. I think that was the purpose - the pure and real intention - of those who first founded the national lottery and provided for the allocation of this funding in 1986. I do not want to pick on anyone when I say that in my view, national lottery funding was never supposed to replace core Government funding for services. It was supposed to be an additional benefit for communities. I know the Cathaoirleach is an avid and enthusiastic golfer, but I do not think national lottery funding was ever intended for the construction of new golf clubs. I do not think that was the purpose or intention of this structure when it was designed. It was supposed to provide additional resources to voluntary and community organisations, which were supposed to be the main beneficiaries. I would like to see us revisit the matter to ensure that the allocation of the next round of national lottery funding is grounded in such a principle. I am particularly keen for us to make up for lost ground in terms of projects that pertain to the natural environment.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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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.

Photo of John WhelanJohn Whelan (Labour)
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I thank the Minister of State for his comprehensive reply. I accept that the Government provides valuable support to many community projects in this category and this sector by means of a range of other funding tranches managed by the Department of Environment, Community and Local Government. I suppose there would have been very little point in the addition by the Government of "natural environment" as a qualifying category under the 2013 Act, which is what happened when it accepted an amendment in good faith as outlined by the Minister of State, if the Government did not intend to follow through on it. I do not think it is a question of other worthy causes being displaced. Of course there are challenges associated with competition for limited resources. I think the merits of any of the projects across the country that I have mentioned would stand up to scrutiny in terms of giving good value for money to the Government and to communities for generations to come. That is really what we have to look at. We have to ensure the inclusion of "natural environment" was not merely a cosmetic exercise. The best way to do that is to follow through on it with funding.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The Senator can take it that the Minister, Deputy Howlin, accepted Deputy Maureen O'Sullivan's amendment in the Dáil because he wanted the Government of the day to have the flexibility to provide some of this funding to areas related to the natural environment, as long as that is possible when the Government is looking at the pot of money that is available. I have had an engagement on this matter with some of the non-governmental organisations in the environment sector. The Minister for the Environment, Community and Local Government and the Minister for Public Expenditure and Reform are aware of this issue, which will be kept under review. We hope the new operation of the national lottery leads to an increase in lotto sales, as this will ensure a greater pool of money is available to be disbursed to good causes. This is something that will be kept under review. I will certainly relay the Senator's strong feelings to the Minister for Public Expenditure and Reform.