Batt O'Keeffe (Cork South Central, Fianna Fail)

Total receipts for the plastic bag levy on disposable shopping bags for 2004 amounted to €13,498,491. Receipts from this levy are remitted to the environment fund, which is also funded by the landfill levy. The purposes for which payments may be made from the environment fund are prescribed in legislation.

In 2004, €49 million was spent from the environment fund on a wide range of activities, including the following: waste management infrastructure and the subvention of local authority recycling operational costs; environment awareness, including the race against waste campaign and various litter initiatives; the enhanced waste management enforcement initiatives being taken by local authorities and the Office of Environmental Enforcement; the national waste prevention and market development programmes; the North-South scheme for the management of waste fridges and freezers; research and development in the Environmental Protection Agency; and contributions to international environment funds.

Prior to the introduction of the levy, an estimated 1.2 billion plastic bags were given away free by retailers. The levy has led to a dramatic reduction with a consequent positive environmental benefit. There has been a 95% reduction in the level of litter arising from plastic bags. Analysis of plastic bag levy receipts on a quarterly basis in respect of transactions up to 31 January 2005 indicates a consistent pattern in the flow of income from the levy. While no changes to its operation are proposed at present, my Department will continue to monitor its performance.

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