State forks out €570,000 for advice on new lottery licence
The Government has paid Davy Corporate Finance almost €570,000 for advice on the awarding of the new National Lottery licence.
At the end of May, Public Expenditure Minister Brendan Howlin announced a new competition for the licence, which is expected to generate between €300m and €400m for the State.
Now, in a written Dail reply, Minister Howlin has confirmed that Davy Corporate Finance has received €568,875 (incl VAT) for providing financial and commercial advice in relation to the award of the new licence.
A spokeswoman for the Department of Public Expenditure said yesterday that the contract with Davy Corporate Finance commenced in October 2012 and is due to conclude in October this year.
"Under its contract, Davy is required to provide advice regarding the structure and timing of the competition for the next licence; prepare a number of key documents, including a draft licence; and advise on and participate in the process of evaluating bids for the award of the licence," she said. The spokeswoman added that the department believes it is receiving value for money in the contract.
The deadline for receipt of applications for the new licence is September 16 and it is expected to be awarded in the final quarter of the year.
In a separate Dail question by Sinn Fein's Mary Lou McDonald on the future of the 106 national lottery staff, Mr Howlin said the question is now under consideration at the Labour Relations Commission.
Last month, Mr Howlin said he was confident the next operator would be in a position to increase the amount given to good causes from €225m a year now to €300m within five years on the back of more favourable licensing terms.