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National Lottery

Dáil Éireann Debate, Thursday - 23 September 2021

Thursday, 23 September 2021

Questions (8)

Cormac Devlin

Question:

8. Deputy Cormac Devlin asked the Minister for Public Expenditure and Reform when he expects the review of the national lottery to be completed; and if he will make a statement on the matter. [45685/21]

View answer

Oral answers (6 contributions)

I commend the Minister on initiating the review of the national lottery, which I believe is long overdue. When is it due to be completed?

I thank the Deputy for tabling this question. I was pleased to announce recently that Indecon International Consultants have been commissioned to support the Department in the review of the effectiveness and transparency of how national lottery funding for good causes is distributed. The national lottery plays a vital role in generating funding for a wide range of clubs, charities and community groups throughout the country each year. Close to 30 cent of every €1 spent on national lottery games is transferred to the Exchequer to fund good causes projects. Approximately €6 billion has been raised since national lottery operations commenced in 1987, and over €254 million was transferred to the Exchequer last year for good causes.

It is timely that we should review the existing funding model now to ensure that it can continue to support good causes projects in an effective manner into the future. My Department will be engaging with a number of relevant Departments and other key stakeholders during this process, and the review will also examine international best practice in this area. I envisage that the review will conclude in the first half of next year and I intend to bring any new proposals arising to the Government as soon as possible afterwards.

I note the figures the Minister gave for Ireland. In the UK, approximately 53% of every £1 spent goes to the prize funds, 25% goes to good causes, 12% goes to the UK Government as duty, 4% goes to the retailers and 5% goes to the operator, with 4% of that 5% for operating costs and 1% of it for profits. The Minister mentioned €6 billion for good causes in this country. What percentage of sales in the Irish system goes to good causes, prize funds, State levies and the operator? I appreciate the Minister might not have that information with him this morning, but he might forward it to me. While I know funds go to good causes in various sectors such as sport, culture, heritage, the arts, youth, welfare and amenities, can the Minister give the House an indication, or arrange to send us that information as well, of how much was allocated to each of those sectors?

I will arrange for a more detailed reply to be issued to the Deputy. However, I will give a sense of my thinking in asking for this review to be conducted. My view is that, at present, it can be difficult to track the good causes expenditure that has occurred and at times it can be difficult for clubs and organisations to navigate the funding options available and to identify if they are eligible for funding. Some Departments do not publish details of which organisations have been awarded funding, while others may publish details of expenditure grants but not mention that the grants have any link to the national lottery. Furthermore, while the National Lottery Act 2013 sets out the areas to which funding can be assigned, there is no framework in existence which sets out how funding should be assigned. While all the spending is voted expenditure and subject to robust oversight and audit by the Comptroller and Auditor General, a lack of clarity can create a perception that money is not distributed in a fair and transparent manner. The Regulator of the National Lottery has conveyed a perception, which exists among some members of the public, that funding goes to certain constituencies, for example, and this is an issue that must be addressed. I want to improve the oversight and transparency of the system and ensure it is operating fairly and that all organisations get a fair crack of the whip.

I appreciate the fact that the review is taking place. I am not sure if a review of this scale has been undertaken since 1987 so it is very important. The Minister highlighted the example of the sports clubs. All Members of the House have been contacted by sports clubs, community organisations and others that are eager to access any type of funding, but there has to be a clear pathway to that funding. It is very generous funding but we must have transparency. We discussed freedom of information earlier, so it is important that there is transparency in respect of funding for all the good causes that the national lottery has funded over the years and will fund in the future.

I strongly agree with the Deputy's sentiments on this issue. As part of the review, a steering group will be set up, led by my Department, comprising representatives from a number of Departments that have national lottery-related expenditure subheads. Public consultation will be conducted as part of this process, which is likely to involve a targeted group of relevant stakeholders. That will be finalised in the coming weeks. The legislation sets out the areas that can benefit from funding under the national lottery good causes heading but not all of those that are listed as potentially being beneficiaries are currently getting any funding, so we need to improve and streamline the process for the allocation of this funding. That may well lead to some changes and that is something we can manage over time. However, a large amount of money is being distributed and the link between that money and the national lottery and the protection of the lottery brand into the future are very important. That is also a key part of the review that is being undertaken.

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