Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context

Question 23: To ask the Minister for Public Expenditure and Reform if he foresees job losses within the national lottery with the introduction of a profit line rather than a simple management fee as part of the new licence agreement to be awarded in January 2012 as outlined in the infrastructure and capital investment 2012-16 medium-term Exchequer framework launched by him. [35194/11]

Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context

Question 27: To ask the Minister for Public Expenditure and Reform if he will reassure community groups that the current level of national lottery funding to good causes will be retained at 30% of annual national lottery sales following the new arrangements proposed by him in the infrastructure and capital investment 2012-16 medium-term Exchequer framework. [35192/11]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

I propose to take Questions Nos. 23 and 27 together.

The existing licence to operate the National Lottery is due to expire shortly and my Department has been actively examining how best to maximise the return on the extension of the licence for the benefit of the people.

As an interim arrangement, the Government has decided to extend the current licence to mid-2013 in order to allow time for the holding of a competition for the award of a new licence. It has been the considered approach for some time that a competitive and transparent process is the best approach underpinning the issuance of a new licence and the precise arrangements for the competition are currently under consideration.

The expiry of the present licence to operate the National Lottery presents an opportunity for the State to review matters and to make sure that the structure of the new licence responds to our present and future needs. This could be achieved through acquiring a significant upfront fee or payment for the new licence, while retaining a condition for significant annual revenues to continue to be allocated towards good causes. It is the Government's desire to use the upfront payment to help fund the National Children's Hospital.

As I set out in my announcement on 10 November on the publication of the Capital Review, and again in this House yesterday in the Statements and debate on that Capital Programme, I will be bringing worked out proposals to Government in the New Year on how best we can approach this matter.

The staff and management of An Post National Lottery Company do excellent work in managing and promoting the National Lottery. They have played a key role in ensuring that the Lottery has been such a major success since its foundation in 1986. The extension of the current licence to mid-2013 means that there are no immediate implications for the Company or its staff as a result of the Government's recent announcement regarding the next Lottery licence.