New taxes proposed for bottles, cans and fast-food containers

Levies on plastic bags have been so positive the revenue they bring in is falling sharply

Department says  new taxes would have the ‘twin benefit’ of ‘positively influencing consumer behaviour’ and solving the problem of ‘diminishing revenues’.
Department says new taxes would have the ‘twin benefit’ of ‘positively influencing consumer behaviour’ and solving the problem of ‘diminishing revenues’.

The Government has been told to consider introducing new taxes, similar to the plastic bag levy, on disposable fast-food containers, cans and plastic bottles.

Briefing notes drawn up by Department of the Environment officials for Minister Simon Coveney say the new taxes would have the “twin benefit” of “positively influencing consumer behaviour” and solving the problem of “diminishing revenues”.

Figures suggest that existing levies on plastic bags and landfill use have had such a positive impact that the revenue they once brought in is falling sharply. The amount raised by the two levies fell by almost €12 million between 2013 and 2014 – from more than €58.1 million to €46.4 million.

This means there is less money available for promoting environmental initiatives such as anti-litter measures and producer responsibility initiatives.

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Funds

The funds have been used to pay for matters such as “Environmental Protection Agency research” which received between €13.8 million in 2013 and €13.3 million in 2014. Built and natural heritage projects received between €5 million and €6 million in each of those years, while even “nuclear safety” received €100,000 in 2014 – up from just €303 in 2013.

A levy of €15 per tonne on the landfill of waste was introduced in June 2002 with a view to encouraging a greater level of recycling and to generate revenues to support green initiatives.

The plastic bag levy was introduced in the same year, at an initial rate of 11 cent per bag, to discourage the use of plastic bags. Since being introduced it is calculated to have raised some €230 million. The department estimates that people used 328 bags a year before its introduction and now use just 14.

Officials told Mr Coveney the “sustainability” of such “diminishing” revenues from the levies needs to be reviewed.

The review should “seek to identify broader-based revenue streams which would have the twin benefit of increasing income to the fund and also positively influencing consumer behaviour, eg to drive recycling of plastic bottles or cans, or to switch away from disposable fast-food containers,” officials said.

Polystyrene fast food containers have been banned in San Francisco, Toronto and Paris.

Tim O'Brien

Tim O'Brien

Tim O'Brien is an Irish Times journalist