Dáil Éireann Debate, Wednesday - 16 October 2013
97. Deputy Michael Healy-Rae asked the Minister for Justice and Equality the reason charity lotteries no longer have the charitable lotteries compensation fund but still have a cap on the prize fund, as, in times of austerity, this decision is preventing charities from earning their own money; and if he will make a statement on the matter. [43886/13]
View answerThe Charitable Lotteries Scheme was established in 1997 to provide assistance to the promoters of certain private charitable lotteries that have products similar to products sold by the National Lottery. This funding was originally drawn from the National Lottery surplus but, as with other National Lottery funded subheads, it is now drawn also from exchequer funds.
Because of the urgent need to make savings in Government expenditure, this Scheme cannot be sustained in the current circumstances. Beneficiaries were advised in October 2012 that it would be phased out on a gradual basis over a 3 year period, with the first reduction taking effect in late 2013. This is in order to give affected organisations as much time as possible to adjust to the change and to consider how they may increase the funding they receive through other fundraising projects. As the decision to phase out the Scheme is currently the subject of legal proceedings initiated by The Rehab Group and Rehab Lotteries, I am not in a position to comment further in relation to this issue, at this time.
The Deputy may be interested to know that provision for an increase in the prize fund limits applicable to private charitable lotteries is included in the National Lottery Act 2013 which is the responsibility of the Minister for Public Expenditure and Reform. I understand that it is the intention of the Minister for Public Expenditure and Reform to commence this provision shortly. This will update the total prize fund limit for lotteries held under section 27 of the 1956 Gaming and Lotteries Act from £3,000, where it has stood since 1987, to €5,000. For lotteries held under section 28 of the 1956 Act, the limit will increase from €20,000 (set in 2002) to €30,000.
Separately, in July 2013, the Government approved the General Scheme of a Gambling Control Bill, which will update our laws on gambling, and will involve the repeal of the 1956 Gaming and Lotteries Act. This legislation will cover lotteries, but will exclude the National Lottery. The General Scheme, which is available on my Department's website, sets out the proposed increases in prize fund limits for lotteries that fall within the remit of this proposed legislation. The General Scheme has been referred to the Attorney General's Office for formal legal drafting. It is anticipated that this will be a lengthy process, given the complexities of the issues involved.
