Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 71: To ask the Minister for the Environment, Heritage and Local Government the reason he decided not to proceed with the consultants recommendations of an anti-litter levy on chewing gum; the representations he received from the industry and the US embassy on this matter; and if he will make a statement on the matter. [11072/05]

Enda Kenny (Mayo, Fine Gael)
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Question 108: To ask the Minister for the Environment, Heritage and Local Government the nature of the representations made to him by companies (details supplied) and the Embassy of the United States regarding the proposed chewing gum tax; and if he will make a statement on the matter. [11034/05]

Dick Roche (Wicklow, Fianna Fail)
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I propose to take Questions Nos. 71 and 108 together.

On foot of the success of the environmental levy on plastic bags, which was introduced in March 2002 and has resulted in a reduction in the dispensing of plastic shopping bags at retail outlets by over 90%, An Agreed Programme for Government contained a commitment to consider the extension of the levy on plastic bags to other materials which may be problematic from a waste management and-or litter perspective. The litter monitoring body, which is co-ordinated by my Department, has published two reports to date, in respect of the years 2002 and 2003, which provide valuable statistical data in relation to litter pollution in Ireland. In the light of the first litter monitoring body report published in July 2003 in respect of the year 2002, my predecessor announced his intention to tackle the issue of litter caused by chewing gum, fast food packaging and automated teller machine — ATM — receipts, which were identified as significant elements of litter pollution.

To this end, a consultancy study was commissioned in September 2003 to carry out an analysis and recommend appropriate economic instruments, including environmental levies, that might be implemented to tackle the litter problems caused by these items. The consultancy study involved consultation with the relevant industry stakeholders. The consultancy report was released for public consultation on 23 September 2004.

In relation to chewing gum, the consultants' report proposed two options: (i) a mandatory 10% levy on chewing gum sales — an average 5 cent per pack — to be collected at manufacturer-importer-distributor level, which would generate an estimated €4-€5 million per annum for use in paying towards the clean-up costs of chewing gum litter; or (ii) a negotiated agreement between my Department and the industry involving the putting in place of a comprehensive action plan, incorporating intensive education and awareness campaigns, and including agreed funding levels with agreed tangible targets and timeframes aimed at changing consumer behaviour in relation to chewing gum disposal and reducing gum litter.

The consultancy report also recommended negotiated agreements with the relevant sectors in relation to fast food packaging and ATM receipts.

The purpose of the public consultation process was to obtain the views of relevant stakeholders and other interested parties on the report's recommendations. The deadline for the receipt of comments and submissions under the public consultation phase was 29 October 2004.

During the public consultation phase, I held a meeting with representatives of the chewing gum industry to discuss the consultants' report; this meeting was facilitated and attended by the Ambassador of the United States of America. The industry outlined measures and solutions that it was prepared to implement by way of a negotiated agreement as a means of addressing the chewing gum litter problem.

My Department has examined the various submissions made as part of the consultation process and having regard to both the recommendations of the consultancy report and the submissions received during the public consultation, I recently announced my decision to commence a process of negotiating agreements with all three of the relevant sectors.

I believe this will give all three sectors — chewing gum manufacturers, the fast food industry and the banking sector — an opportunity to propose positive and meaningful measures to minimise the impact of the items they produce in causing nuisance litter. In accordance with the consultants' recommendations, the application of mandatory levies will be back on my agenda if any sector fails to propose effective measures, which will include an appropriate level of funding, to address the problems caused within an agreed timeframe.