Pat Rabbitte (Dublin South West, Labour)
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Question 51: To ask the Minister for Finance if his attention has been drawn to the fact that of the ten largest Internet bookmakers marketing into Ireland only two employ Internet staff here and the other eight are located in low tax regimes; the steps he will take to safeguard the 860 smart economy jobs in this sector as well as the corporation tax, VAT and employees taxes that derive from these Internet operations; and if he will make a statement on the matter. [32834/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am aware of the portability of internet betting operations. It is the prerogative of a company to locate its businesses where it sees fit. In that regard, it should be noted that Ireland's tax regime, for example corporation tax, compares favourably to other countries. In addition, Ireland has a highly skilled and flexible workforce.

The Deputy may wish to note, that my Department is working closely with the Department of Justice, Equality and Law Reform which has initiated a review in order to provide the Government with options for a new and comprehensive legal and organisational framework governing gambling architecture in the State. The review, amongst other things, will consider:

· the recommendations contained in the Report Regulating Gaming in Ireland,

· the existing law regulating gaming lotteries and other forms of gambling in the jurisdiction,

· international developments, in particular the experience of the UK's Gambling Commission,

· developments in relation to remote gambling (e.g. via the internet and mobile phones).

As the Deputy may be aware, due to pressure on the betting sector, I decided to defer the introduction of the increase in the betting duty provided for in Finance (No. 2) Act 2008 pending a review. Accordingly, the Finance Act 2009 contains a provision for continuing the existing betting duty rate of 1% unless and until an order is made bringing the 2% rate into effect, or alternative betting taxation arrangements are enacted. This decision is based on the premise that the betting sector will engage in constructive discussions about putting in place a fair and workable tax base for the sector. Such discussions will, inter alia, touch on issues such as online/phone betting, which is largely untaxed, and look at proposals that could potentially bring this area into the tax net, if possible, while also protecting Irish employment in the sector.