Written Answers. - Charitable Lotteries Fund.
Trevor Sargent
Question:
86
Mr. Sargent
asked the
Minister for Finance
the proposals, if any, he has to supplement the income of those private charitable lotteries whose products are competing directly with the national lottery but who do not come within the terms of the recently announced Department of Finance charitable lotteries fund; and if he will make a statement on the matter.
[17420/97]
Trevor Sargent
Question:
87
Mr. Sargent
asked the
Minister for Finance
whether his Department has formulated a view on whether it is a good idea for the State to involve itself in supplementing the income of private undertakings in areas where those private undertakings suffer a loss of income as a result of having products in direct competition with products offered by State-backed competitors; and if he will make a statement on the matter.
[17421/97]
Trevor Sargent
Question:
88
Mr. Sargent
asked the
Minister for Finance
if he will identify the aspects of the Green Paper supporting voluntary activity which are being progressed through the establishment of the Department of Finance charitable lotteries fund which, it would appear, is intended to supplement the income of private charitable lotteries whose products are competing directly with the national lottery.
[17422/97]
Trevor Sargent
Question:
89
Mr. Sargent
asked the
Minister for Finance
if it is envisaged that private charitable lotteries established after 31 October 1997, will be in a position to benefit from his Department's charitable lotteries fund; and if he will make a statement on the matter.
[17423/97]
Trevor Sargent
Question:
90
Mr. Sargent
asked the
Minister for Finance
his views on whether the establishment of his Department's charitable lotteries fund indicates that a fundamental review of the role, operations and management of the national lottery is off the agenda of the current Government; and if he will make a statement on the matter.
[17424/97]
I propose to take Questions Nos. 86, 87, 88, 89 and 90 together.
It might be helpful if I were to outline the background to the Charitable Lotteries Fund. When the national lottery was being established in 1987, the Government accepted that it might prove desirable, in the light of experience, to provide some support for private charitable lotteries, the income from which could be adversely affected by the operation of the national lottery. In practice, it is difficult to assess the impact of the national lottery on charitable fundraising or to separate the national lottery impact from other effects, such as the decline of popular appeal of some charitable purposes. Some evidence suggests that public contributions to charitable bodies generally have continued to grow since the introduction of the national lottery. Charities and the voluntary sector generally have been significant beneficiaries of lottery funding. For example, over the period 1987 to 1996 over £240 million of lottery funds were spent in the health and welfare areas and the beneficiaries included a large number of charitable bodies.
However, the promoters of charitable lotteries have consistently maintained that they have lost income to the national lottery and I am satisfied that a well targeted initiative aimed at assisting those charitable lotteries who are competing directly with the national lottery is justified. A fund of £5 million has been established for this purpose in 1997. It is intended to provide further allocations of £5 million in 1998 and 1999. The operation of the scheme will be reviewed before the end of the third year.
I would like to emphasise that this is a very focused initiative which is intended to address the circumstances of those private lotteries which have products in the marketplace in direct competition with the national lottery. It has never been intended that this fund would be a vehicle for supporting charitable fund-raising generally. This is not the intent of the scheme and such a measure would require funding very greatly in excess of what is being provided.
The scheme was advertised in the newspapers on 8 October 1997. Applications were invited from the promoters of private charitable lotteries conducted under the provisions of existing gaming and lotteries legislation which were in operation on 1 July 1997. The closing date for receipt of applications is 31 October 1997. The applications will be evaluated by an independent committee, which will advise as to whether they meet the eligibility criteria laid down for the scheme. Subject to the availability of funds and to the other conditions of the scheme being met, it is intended that eligible charitable lotteries will be assisted in proportion to the volume of their average annual turnover in the three most recent years of account as certified by the organisation's auditors.
There are no plans to provide funding for private charitable lotteries established after 31 October 1997. While the establishment of the fund does not arise specifically as a result of the Green Paper on Voluntary Activity, it is consistent with the aims and objectives for voluntary activity which are set out in that paper. The establishment of the fund would not have major implications for the question of review of the operations of the national lottery.
