Asked the Minister for Finance if he will establish an independent authority to ensure that allocations from the National Lottery to community, sporting, and cultural groups are made on the basis of need and merit.
Ceisteanna—Questions. Oral Answers. - National Lottery Allocations.
4.
The surplus revenues earned by the national lottery are paid into the Exchequer as non-tax revenue and are issued from Subhead N of the vote for the Office of the Minister for Finance to suspense accounts operated by the relevant Government Departments for spending on approved projects in the areas of sport and other recreation, national culture (including the Irish language), the arts, the health of the community, youth activities and amenity and welfare projects. This is entirely in accordance with the procedure set out in section 5 of the National Lottery Act, 1986.
Once global allocations of funds to the activities specified above have been decided by the Government, the selection of individual projects for funding is a matter for the spending Minister concerned. All expenditure requires the approval of the Minister for Finance: this may take the form of specific approval for a project, or general approval for the terms of a grant scheme.
Issues from each Department's National Lottery Suspense Account are audited in the same way as other public expenditure, and are published in the Appropriation Accounts. Recipients of grants are required to submit audited accounts to the Department concerned after the end of the financial year, and to provide a separate account of expenditure on the project for which the grant is given. Where the grant represents the greater part of the total income of the grantee, the books and accounts of the grantee are to be made available, if required, for examination by the Comptroller and Auditor General.
The criteria applied by the Department of Education and by the Department of the Environment in administering the new amenities scheme and the capital grant scheme for the provision of recreational facilities respectively have already been published. I am circulating the details in the Official Report. These detailed criteria together with the audit requirements to which I have already referred will ensure that there is full accountability for the use of lottery funds within the general allocations decided by the Government.
The success of the national lottery in generating a level of funding for worthwhile projects in the sections of activity to which I have referred has greatly exceeded our expectations. Nevertheless the applications for support from groups around the country are well above the level of funding available at present. Inevitably, therefore, some applicants have had to be disappointed on this occasion. As Deputies will appreciate, it is the responsibility of the Government to determine priorities in the use of public moneys, which include lottery funds and it would be quite inappropriate to pass this responsibility off to an independent agency which would not be accountable to the Oireachtas for its decisions. It is my hope that as the national lottery goes from strength to strength it will generate a level of funding which will enable the Government to respond over time to the very many applications received from community and other groups around the country.
Following are details of the schemes:
DEPARTMENT OF EDUCATION
Capital Grant Scheme for the Provision of Recreational Facilities
1. Objective of Scheme
This scheme is designed to assist and encourage local initiatives in the provision of recreational, leisure and community facilities (excluding swimming pools and environmental works). The provision of indoor and outdoor facilities are eligible for consideration under this scheme. The scheme is open to all voluntary community organisations wishing to provide recreational facilities and thereby promote the greater availability of recreational and leisure opportunities for the community.
2. Conditions for Participation
(i) Site Acquisition
Applicant organisations must provide a suitable site for the development. The site must be owned or held under long-term lease (not less than 25 years from time of application) by the applicant. In determining the suitability of a site the Department will take into account its proximity to existing facilities and its accessibility in terms of the potential use of the proposed facility by the community and schools. Grants will not be made available towards the purchase of sites or premises.
(ii) Grant Limits and Local Contribution
Grantees will be required to provide a local financial contribution of at least 30 per cent of construction cost of the proposed project but in very exceptional circumstances a contribution as low as 20 per cent will be acceptable (in such cases full particulars of these circumstances must be furnished). The level of grant-aid will be at the discretion of the Department. Grants will only be considered in respect of work to be done by recognised building contractors and will not exceed £100,000. Under no circumstances will the grant exceed 80 per cent of construction costs for the proposed project, as agreed in advance by the Department. Grants will not be increased in line with increased building costs.
Where the development of playing pitches is proposed a grant maximum of £20,000 will apply in the case of any single project or group. All other conditions of grant assistance stipulated in this schedule shall apply in the case of such developments.
Satisfactory evidence of the ready availability of the required local contribution amount must be produced prior to the confirmation of grant-aid by the Department.
(iii) Plans
Plans for the proposed development must be prepared and submitted to the Department. The Department will not be responsible for any costs incurred in this regard. Each development must proceed in accordance with the design and costs agreed by the Department.
(iv) Planning Permission
Applicants will be required to secure planning permission and by-law approval for the proposed development. The Department will not be responsible for any costs incurred in this regard.
(v) Construction of Project
Grantees will be responsible for all arrangements for the construction of their project. The project must be put out to tender and subsequently executed by building contract. If it is proposed to pass over the lowest of any tender the Department must be notified before any other tender is examined. Failure to accept the lowest suitable tender may result in reduction or cancellation of grant aid.
Satisfactory arrangements must be made by the grantee for the professional supervision of construction works. The Department will not be liable for professional fees incurred.
Grants will not be provided towards work performed by voluntary labour or under Government training schemes.
Where proposed construction works exceed £100,000 building contractors will be required to secure an insurance bond in respect of such projects in advance of the award of a contract.
Tax clearance procedure (i.e. production of a current C.2 Certificate of tax clearance) in respect of contractors proposed for selection must be complied with in advance of any contractual commitments being made on the part of the grantee.
(vi) Commencement of Building Work
Reasonable progress towards the commencement of building work on the project must be in evidence within six months from the date of provisional allocation of grant aid. The onus will be on the grantee to show evidence of satisfactory progress towards project construction stage. In the absence of such evidence the Department retains the right to withdraw the offer of grant assistance.
(vii) Management and Maintenance
The grantee will be responsible for making satisfactory arrangements for the management and maintenance of the proposed facility.
(viii) Guarantee of Community Access and Continued Usage
The grantee will be required to submit a written guarantee that the completed facility will be made fully available to the local community. It will also be necessary to provide an undertaking protecting the Department's financial interest in the facility and guaranteeing the repayment of grants should it cease to operate or should a change of usage occur.
(ix) Insurance
The grantee will be required to arrange for the provision of adequate insurance cover for the completed facility, against fire and all other insurable risks, with an approved insurance company and to pay all necessary premiums. The insurance will be for such amount as will provide cover for the full re-instatement value of the facility, together with a sum for professional fees.
It will also be necessary for the grantee to maintain satisfactory public liability insurance in respect of users, general public, etc.
Groups wishing to avail of grant-aid must be in a position to comply in full with the conditions for participation in the Scheme outlined above. All applications will be considered on their merits, but special consideration will be given to cases where an early commencement of building work is possible.
3. Payment of Grant
Grants will be paid to approved projects following submission of architects' certificates/ builders' invoices in respect of work completed. Grant instalments will issue at a rate established by the Department having regard to the level of grant approved.
The Department will retain a proportion of the approved grant amount against satisfactory completion of the proposed development works.
A grant will not be payable in respect of projects being grant assisted by any other Government Department.
4. Project Visits
Approved projects will be subject to occasional visits by officials of the Department.
5. Application Forms
Application forms for completion in respect of eligible projects are available from the Secretary, Department of Education, Youth Section, 11th Floor, Hawkins House, Dublin 2.
All questions on the form must be answered and failure to disclose full details will render applications ineligible for consideration.
6. Acknowledgment
This grant scheme is being funded from the surplus proceeds of the national lottery. All grant assisted projects must display an acknowledgment that the project has been aided by the national lottery.
November, 1987.
COMMUNITY AMENITY PROJECT GRANTS
(Financed from National Lottery)
GRANT CONDITIONS
1. The grant is allocated on the understanding that the project is not being grant assisted by any other Government Department.
2. The grant allocation is made on the understanding that a local contribution of at least 30 per cent will be made towards the cost of the project.
3. The grant is available only in respect of actual costs borne by the applicant organisation. (For example, work done by voluntary labour or under Government Training Schemes cannot be included).
4. (1) A major objective of the scheme is the promotion of youth employment. Accordingly, every effort should be made to ensure that at least 50 per cent of the workforce are under 25 years of age. Local authorities will be required, when claiming payment of the grant, to furnish a certificate on the extent to which persons under 25 were employed on the project.
(2) In addition, other unemployed local people should be employed as far as possible. Such employment should be arranged through FÁS (The Training and Employment Authority).
5. Reasonable progress towards the commencement of work on the project must be in evidence within six months from the date of allocation of the grant. In the absence of such progress, the Minister reserves the right to cancel the grant allocation at any time. All projects or phases of projects must be completed by such dates as may be specified by the Minister.
6. In the case of a project to be carried out by a body other than a local authority, the allocation is conditional on:—
(a) the submission by the local authority of a certificate that
— the project, when completed, will be of public utility and will be available for public or community use as far as practicable;
— there will be adequate arrangements for management and maintenance and for meeting running costs, if any;
(b) the detailed planning and execution of the work being subject to the general approval of the local authority;
(c) the local authority satisfying itself that the balance of the cost of the project is, or can be made, available.
7. It will be a matter for the local authority to ensure that cost estimates are accurate; no additional grants will be made in respect of any cost over-runs arising for whatever reason.
8. The grant payments will be made directly to the local authority on behalf of the bodies involved on receipt of the appropriate expenditure/recoupment certificate from the local authority.
9. Payments will be made in all cases to the local authority in arrears on receipt of certificates of expenditure. Claims for payment may be made as the need arises.
10. Under new arrangements announced in the 1987 budget statement, payment of grants exceeding £500 from State or local authority sources is conditional on the production by the payees of a certificate from their local tax officer that their tax affairs are in order. The new arrangements apply to voluntary bodies as well as individuals and companies. Where it is proposed to carry out work by contract, tax clearance procedures relating to the contractor must be complied with before the contract is signed. Advice in these matters should be sought from the local authority responsible for supervision the grant aided project so as to avoid difficulties and delays in payment of the grant.
11. Grant-assisted projects must display an acknowledgement that the project has been aided by the national lottery. The local authority responsible for supervision of the grant aided project so as to avoid difficulties and delays in payment of the grant.
12. The grant allocation is made strictly on the understanding that the project will be completed without further grant aid under this scheme.
Department of the Environment
April, 1988.
In view of the considerable parliamentary and public disquiet about the way in which these grants are disbursed, would the Minister consider setting up an informal all-party committee to discuss with the Ministers concerned the criteria to be used and how to avoid the questionable publicity which surrounds the allocation of these grants so as to ensure that public support for the lottery will be maintained?
I do not accept what the Deputy has said about there being disquiet over the method of disbursement of lottery funds. What we are doing is similar to what has been done in the allocation of funds under any particular subhead by successive Governments since the foundation of the State. Therefore, if people want to play down the success of the lottery by making accusations and innuendoes and spreading gossip on how these moneys are disbursed, they are wasting their time, because I could refer to the many hundreds of projects throughout the country which are benefiting from allocations received from lottery surplus funds. They themselves would only be too anxious to publicise the fact that they have received this support to provide these necessary facilities and amenities in their own immediate areas.
Would the Minister agree that it is not in accordance with the best interests of public accountability for individual Member of the Houses of the Oireachtas to hand over cheques to organisations——
Or their drivers.
——and that it is necessary that the criteria to be used should have broad acceptance in both Houses of the Oireachtas, apart from the Committee of Public Accounts and at local level?
If the Deputy would like me to read into the record the criteria which are being used by the Department of Education and the Department of the Environment I would spend the next 20 minutes doing so. As they are well known I do not think I have to read them into the record. Arrangements for the distribution of the lottery surplus funds have already been decided upon by both this and the previous Government. A national sports centre is going to be provided here in Dublin and six other locations have been delegated for regional sports centres, five of which were decided upon by the previous Government. A number of counties will also benefit from additional lottery surplus funds. Seemingly the argument being put forward by Deputies both inside and outside the House on the availability of these funds mainly stems from distribution of the £10 million allocated to the Department of Education and the Department of the Environment — £4 million to the Department of Education and £6 million to the Department of the Environment — but this will hardly cater for one-tenth of the number of applications received, many of which were received three or four years ago. There was no prospect of either work being started or being completed until lottery funding became available. If Deputies can show me any member of the Government or any Deputy on this side of the House any particular project which has received an allocation which it was not entitled to receive, they should come forward but until such time as they do, I say put up or shut up.
On a point of order, I resent the last phrase which the Minister used, "to put up or shut up". I think he should withdraw that remark.
Indeed, I will not.
Let us proceed by the way of a supplementary question, relevant and brief.
Would the Minister consider it desirable that the national lottery should not be unduly politicised on a party basis?
So do not do it.
Is the Minister prepared to consider having informal discussions with the leaders of all the other parties——
This is repetition.
——or their spokes-persons on the way in which these moneys should be distributed?
Let me repeat what I said in my initial reply which is that it is the responsibility of the Government to determine priorities in the use of public moneys, which include the lottery funds, and this they will continue to do.
As Minister for Finance, does the Minister see any anomaly or difficulty in the fact that, by virtue of the way in which the national lottery is working and its undoubted success, there appears to be ample money available for a narrowly-defined set of purposes while cut backs are taking place in other perhaps more essential areas, such as education and infrastructural development? Does he, as Minister for Finance — and I am asking his opinion here — see any difficulty in the long-term public perception that might arise from what is an apparent anomaly, when cuts are being effected in one area and largesse occurring in another?
I can answer the Deputy by saying that that is why the Government, when they took office 14 months ago, extended the areas on which the national lottery moneys could be spent into the health and community areas generally, wheras there had been a much narrower definition on the part of the previous Government in relation to how these moneys should be spent. It is important that people would accept fully that expenditure in sport, recreation, national culture, including the Irish language, the arts, the health of the community, youth activities and amenity and welfare projects covers a fairly wide and extensive area and, in my view, is having great success on the ground.
I would accept what the Deputy has said, that it can be difficult for any of us, Government or Opposition, to justify expenditure under some of these headings while, at the same time, charges are being imposed for services or some services are being curtailed; there is no doubt about that. But we must make up our minds: do we want all of the national lottery funds to be spent in the way decided by this and the previous Government, or do we want that money to come in as normal non-tax revenue to the Exchequer and then be dispersed accordingly into areas that might appear to have higher priority, at least in certain people's minds.
Does the Minister think it desirable that individual Members of this House should claim credit, in printed material, for the manner in which the Government carry out their duties under the National Lottery Act, as at present constituted, and that it gives rise to the natural and reasonable belief that political influence is used in the manner in which these moneys are expended? Would the Minister explain to the House — if he considers it entirely inappropriate, to use his phrase now, that an independent board should disperse the national lottery moneys — how then he sat mute this morning when a Bill to effect that exact purpose had its First Reading in this House? Would he agree with me that it is indicative of the fact that he is afraid of being beaten if the matter was put to a vote in the House?
In reply to Deputy McDowell I should say I personally have no responsibility in relation to what any Deputy does by way of correspondence, including Deputy McDowell, or what he or others may have done in the past——
I never made any representation——
So the Deputy does not accept representations from constituents, does he not?
I have never made representations.
Does the Deputy not accept representations from constituents?
I have never claimed credit for the manner in which Government moneys are spent.
Has the Deputy never replied to a constituent? I do not accept that Deputies claim credit. All of the people who have received moneys from the national lottery surplus funds for the various projects already notified — and some still to be notified — are happy that those moneys emanate from their contribution to the national lottery funds.
Courtesy of their local Deputy.
We have dwelt over-long on this question. I see a number of Deputies offering. I should like to facilitate them provided they are brief, and I mean brief. Otherwise I shall go on to the next question. I am calling Deputy Peter Barry.
Would the Minister accept that a Deputy of his own party has said, about a project in County Cork, that it would not have got a grant except for his intervention? Would the Minister now like to say that no Deputy of this House, through his intervention, will secure a grant for a project which is unworthy of one?
I can be quite positive in saying that every group that has been allocated grants would have complied with the criteria laid down for the dispersement of these funds and that they would get them, as of entitlement, for the provision of the facilities and amenities concerned. I have no control over what Deputies may say in Cork. I am sure there have been occasions — and I could produce the record had I sufficient time to do so — when Deputy Peter Barry had a little article in the Cork Examiner claiming that he had done certain things as well.
I am calling Deputy Michael D. Higgins.
That is not to say that they would have been helped except by way of subvention, which is a cause of great scandal.
Would the Minister agree that there is a qualitative difference between the claim for successful or strong representations and the actual handing over of a cheque? Furthermore, would the Minister not agree that the handing over of cheques by elected Members at social functions is being seen by the public as debasing politics and smacking of 19th century landlordism?
Yes, I would agree.
In supporting the call by Deputy Desmond for an independent review body and bearing in mind the Minister's concern for an over-politicisation of the scheme, there are two aspects that concern me. The first has to do with the dissemination of literature which the Minister says he cannot control — and I accept that. Would he agree that there are clear indications that individual Deputies from his side of the House were advised long before decisions were taken——
I asked for a brief question. If the Deputy will not proceed on that basis I shall go on to another question.
Would the Minister examine those two aspects: first, the fact that it appears, unofficially, that information was given in relation to decisions to one side of the House only. Second, would the Minister examine the problem of Deputies endeavouring to ascertain how many other applications within their constituencies were in the pipeline which did not meet the criteria laid down? Finally, would the Minister make available to the House the criteria employed by Government Departments in deciding which schemes should be funded?
I am making that information available with the Official Report. I do not want to delay the House by reading out the numerous pages but it is available for all to see.