The National Lottery's first slump in sales cost director Mr Ray Bates more than €30,000 in bonuses last year, it has emerged.

The director received €29,000 in performance-linked bonuses, less than half the €63,000 he was paid in 2001, when revenues surged 8 per cent.

But his basic salary climbed €10,000 to €131,000 in a year in which Lottery turnover slipped €5 million and the cash raised for Government dipped nearly €3 million.

Mr Bates's bonuses were cut because he failed to achieve a range of sales and profits targets. His total income for the year, including pensions and taxable benefits such as the use of a company car, was €205,000 against €226,000 for the previous 12 months, the annual statement released this week shows.

Six non-executive directors shared fees of €48,000, compared to €41,000 in 2001

Executives shrugged off the sub-par performance, blaming confusion over the euro changeover and general cooling in the economy. Fourth-quarter sales were the highest in the Lottery's history, suggesting the downturn was a once-off glitch, chairman Mr John Hynes said.

The major upgrading of technology was another factor in the decrease. The process involved the replacement of all central system hardware and software, as well as the replacement of 3,500 terminals across the State.

The company dismissed suggestions that the British Lottery was winning customers at the expense of its Irish counterpart. If anything, the National Lottery had wooed business from across the Border, said Mr Bates.

The fall in Lotto sales resulted in part from players switching to the enhanced Lotto Plus game, which recorded a 24 per cent increase in revenues to €76.2 million.

A less-than-expected number of "roll-over" jackpots dampened public enthusiasm and sapped Lotto sales, the company added.

Operating costs last year were 8.7 per cent of sales, or €46.1 million. Agents received €33.1 million in commission and bonuses, 6.2 per cent of sales.