Minister Howlin grants National Lottery Licence
to Premier Lotteries Ireland
- bringing New Children’s Hospital closer
The Minister for Public Expenditure and Reform, Mr Brendan Howlin TD, announced today that he has granted the next licence to operate the National Lottery to Premier Lotteries Ireland, a consortium comprising Ontario Teachers’ Pension Plan (the owner of the Camelot Group), An Post and An Post pension funds.
Speaking today, Minister Howlin reflected, “Almost two years ago, I brought a proposal to Government that I strongly believed could yield significant revenues. Today, I am pleased to say that I have delivered on that proposal - half of the €405 million achieved for the transaction will now be paid. As I announced during Budget 2014, these monies are earmarked for a number of job-rich projects including the Wild Atlantic Way, the 1916 Commemoration and the National Sports Campus. In nine months, the second installment of €202.5million will be delivered, bringing the construction of the New Children’s Hospital closer.”
The award of the licence follows a competition which took place between May and October 2013. On 3 October 2013, Minister Howlin announced that Premier Lotteries Ireland had been selected as the Preferred Applicant as it had met the essential requirements provided for under the terms of the competition and had submitted the highest Licence Fee proposal which was €405 million. Discussions on finalising the terms of the licence then took place between the Department of Public Expenditure and Reform and the Preferred Applicant. These discussions recently concluded. Premier Lotteries are due to take over the operation of the National Lottery within a year.
Premier Lotteries Ireland draws on the extensive experience of An Post, the parent company of the An Post Irish National Lottery Company, operator of the Irish National Lottery since 1987 and Camelot Group, operator of the UK National Lottery since 1994.
At the signing of the licence Minister Howlin said “I am very pleased with the outcome of this process. We have a new operator that brings together valuable domestic experience together with international expertise. I believe Premier Lotteries will grow the business in a responsible manner and I look forward to a greater annual revenue stream for Good Causes.”
Under the next licence, the ongoing annual contribution to Good Causes will be set at 65% of Gross Gaming Revenues, which are defined as Sales minus Prizes. Current arrangements for retailer commission will be maintained.
Staff of the current operator of the National Lottery, An Post National Lottery Company (APNLC), will transfer to Premier Lotteries Ireland under their existing terms and conditions in accordance with legal protections that arise in transfer situations.
In addition Minister Howlin stated, “This process has run very smoothly. The interests of the key stakeholders have been protected, in particular, the staff of the lottery and the thousands of retailers. The ultimate stakeholders are the people of Ireland and they will benefit from the proceeds of the upfront payment and an increase in revenues for Good Causes that will benefit worthwhile projects throughout the country for the next 20 years.”
Quotes
“Almost two years ago, I brought a proposal to Government that I strongly believed could yield significant revenues. Today, I am pleased to say that I have delivered on that proposal – today, half of the €405 million achieved for the transaction will be paid. As I announced during Budget 2014, these monies are earmarked for a number of job-rich projects including the Wild Atlantic Way, the 1916 Commemoration and the National Sports Campus. In nine months, the second installment of €202.5million will be delivered, bringing the construction of the New Children’s Hospital closer.”
“I am very pleased with the outcome of this process. We have a new operator that brings together valuable domestic experience together with international expertise. I believe Premier Lotteries will grow the business in a responsible manner and I look forward to a greater annual revenue stream for Good Causes.”
“This process has run very smoothly. The interests of the key stakeholders have been protected, in particular, the staff of the lottery and the thousands of retailers. The ultimate stakeholders are the people of Ireland and they will benefit from the proceeds of the upfront payment and an increase in revenues for Good Causes that will benefit worthwhile projects throughout the country for the next 20 years.”
ENDS
Background Note for Editors: Timeline
April 2012: Minister Howlin announces Government Decision to hold a competition for next National Lottery licence involving an upfront payment to the State.
July 2012: Heads of new National Lottery Bill are approved by Government.
October 2012: Davy Corporate Finance are appointed as financial and commercial advisers to the Department, following a tendering process.
December 2012: National Lottery Bill is published
January to May 2013: National Lottery Bill passes through the Oireachtas and is signed into law by the President in May 2013.
8 May 2013: Minister announces that Expressions of Interest in the competitive process are being sought.
30 May 2013: Minister announces the launch of the full Competitive Process.
3 October 2013: Minister announces that Premier Lotteries Ireland Limited has been selected as the Preferred Applicant
14 February: Lottery staff vote to accept Labour Court Recommendation
27 February 2014: Minister grants Lottery licence to Premier Lotteries Ireland
Projects to be funded from the National Lottery Licence transaction
Road Maintenance
Road repair and maintenance is labour intensive work and so funding in this area has the potential to not only address the need to maintain the network of roads but can also have a strong employment impact. This work will have an economic impact through reduction of transport costs to businesses, especially in local economies. It can also prevent higher costs of repairs in future if the appropriate maintenance work is carried out now.
Wild Atlantic Way – Driving Route
Through the development and promotion of the Wild Atlantic Way driving route, Fáilte Ireland hope to attract high-spending tourists to the West, thereby creating tourism jobs in businesses all along the west coast. The additional funding proposed will accelerate delivery of discovery points, lay-bys and other related infrastructure along the route.
Sport Capital Grants
Additional funding, on top of the existing provision, will allow for a new round of local sports capital grants to be progressed in 2014. The Sports Capital Programme has been proven to deliver jobs and investment in communities all over the country and to help boost participation in sport by enhancing local facilities. Due to the leveraging effect of the own-funding contribution of grantees, it is estimated that in the region of 40 jobs can be supported for every €1m in Exchequer funding for sports capital projects.
National Sports Campus
Funding will be provided to allow works to commence on a National Indoor Training Arena at the National Sport Campus. The Department of Transport estimates that in the region of 130 construction jobs could be created at the Sports Campus and up to 20 long-term jobs would arise in the operation of the arena.
Better Energy Programme
Additional funding will be provided for the Better Energy Programme. The additional allocation for this programme has the potential to create employment, help alleviate energy poverty and is in line with efforts to reach the State’s climate change targets.
National Trading-Online Voucher Scheme
Funding will be provided to assist in the rollout of a national trading-online voucher scheme, aimed at getting 2,000 small Irish businesses trading online.
Private House Grants for Older People and People with a Disability
There is a continuous high level of demand under the grant schemes for Older People and People with a Disability. The typical works are minor in nature and are generally carried out by small to medium sized firms and local tradesmen. Additional funding will be provided for this scheme on top of the existing allocation for 2014.
National – City of Culture
In June 2012 the Minister for Arts, Heritage and the Gaeltacht announced the introduction of a new National City of Culture initiative for Ireland whereby a city is selected and designated as a National City of Culture for one calendar year. Limerick City was selected as the first Irish City of Culture for 2014. Limerick plans a comprehensive programme of arts, culture and sporting events which will enable it to unlock a positive change in its community allowing it to more effectively target disadvantage.
Cork Events Centre
Funding will be provided for the development of a large scale multifunctional events centre in Cork. This project can bring significant benefits to the city and the wider economy of Cork and the south of Ireland region. The City Council will put in place a significant funding package to progress the project in conjunction with private sector partners. Exchequer investment will help bridge a gap in funding for the project.
Social Housing
Investment in a well-targeted
but limited social housing construction programme will yield positive outcomes in terms of addressing urgent housing need in specific locations and in generating economic activity in supporting jobs in the labour intensive construction and materials supply area as well as spin-off employment/activity in related areas.
1916 Commemoration Projects
Funding will be provided in 2014 for a number of Commemoration projects including the GPO inner courtyard exhibition and interpretative facility, the Military Archives and some smaller projects falling under the remit of the Department of Arts, Heritage and the Gaeltacht.
Enabling infrastructure for the Irish Maritime and Energy Resource Cluster (IMERC)
Additional funding will allow for enabling infrastructure for the development of the Irish Maritime and Energy Resource Cluster (IMERC) in Ringaskiddy Cork. This critical enabling infrastructure will provide the level of servicing required to market plots to multi-national clients. The IMERC aims to deliver a research and commercial cluster of world standing.
The Traditional Skills and Buildings at Risk Jobs Leverage Scheme
This scheme will leverage private capital for investment in a significant number of labour intensive, small scale renovation projects directed at structures protected under Planning Law. The Department of Arts, Heritage and the Gaeltacht estimates that each €5 million invested per annum will provide at least €10 million direct investment in the construction sector from approximately 500 projects nationwide, on the basis of State funding up to €10,000 per project with minimum matching contribution of 50% from the private sector.
Unfinished Housing Estate Resolution Pilot Project
Funding will be made available for pilot resolution strategies for unfinished housing estates in a number of local authority areas. Local Authorities will be invited to submit proposals for funding to produce comprehensive resolution strategies.
Book Rental Scheme for Primary Schools
This scheme will provide grant funding to those primary schools which do not currently operate a book rental scheme. The scheme will allow schools to purchase books which their pupils can then rent out for the school year. Such schemes help alleviate some of the back to school costs for parents.