LEGISLATION increasing the prize fund limit for charity lotteries is being prepared. The Minister of State for Justice, Ms Joan Burton, said that charitable organisations were assisting an advisory group in the Department and she would be asking the Dail Committee on Legislation and Security for its advice about the changes to be included in a Bill later this year. She proposed increasing the weekly prize fund limit, at present fixed at £10,000.
The Minister was responding to the Fianna Fail spokesman on law reform, Dr Michael Woods, who moved a private members' Bill which proposes to remove the cap on prizes. This was essential, he said if charities were to retain their share in the market. The voluntary sector played a major part in providing health, education, research, environment sports and social services. The turnover of charitable lotteries had been severely reduced by the National Lottery, from £15 million in 1988 to £10 million in 1994.
The dominance of the National Lottery had been achieved through flexible legislation under which there was no cap on prizes.
Mr Brendan Kenneally (FF, Waterford) said the National Lottery had no immediate dependants but had been given a monopoly on fund raising, enabling it to capture 97 per cent of the market.
Ms Helen Keogh (PD, Dun Laoghaire) said the Government should be doing everything in its power to help charities. Instead, we have a bizarre situation where the State itself has put the whole charity sector at a major disadvantage in its ability to raise funds."
Charities estimated they had lost up to £200 million in revenue since the introduction of the National Lottery in 1987.