Paul Kehoe (Wexford, Fine Gael)
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Question 985: To ask the Minister for the Environment, Heritage and Local Government in relation to the proposed increase in the charge for plastic bags, when he will increase this charge; will it be for a further 22 cent therefore a total of 44 cents; and if he will make a statement on the matter. [33841/09]

Paul Kehoe (Wexford, Fine Gael)
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Question 986: To ask the Minister for the Environment, Heritage and Local Government in relation to the proposed increase in the charge for plastic bags, if he has engaged with retailers and suppliers and producers to this price increase; his views on whether the possible negative business consequences for packaging suppliers of a short lead time for the introduction of a 100% increase on the retail price of plastic bags, when suppliers already have considerable stocks of branded bags on site and will face difficulties for their businesses in absorbing the very devaluation of this stock;; and if he will make a statement on the matter. [33842/09]

John Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 985 and 986 together.

The primary purpose of the levy on plastic bags is not to generate revenue but to change consumer behaviour and achieve a significant reduction in the consumption of plastic bags dispensed at retail outlets. The introduction of the levy at the rate of 15 cent per bag in 2002 led to a dramatic reduction in the number of disposable plastic bags provided to consumers, from an estimated 328 bags per person per year prior to the introduction of the levy to 21 bags per person by the end of 2002, with a consequent positive environmental benefit.

However, there followed a gradual increase in plastic bag usage which, by the period January to June 2007, had risen to an estimated 33 bags per person. In order to counteract this trend the levy was increased to 22 cent with effect from July 2007. Plastic bag consumption subsequently dropped to 26 bags per person for the period July 2007 to December 2007 but has climbed back to 27 bags per person for 2008.

Under Section 72 (7) and (8) of the Waste Management Act 1996, as inserted by Section 9 of the Waste Management (Amendment) Act 2001, it is only possible to increase the plastic levy in line with changes in the consumer price index. The increase in the levy to 22 cent per bag in July 2007 was in accordance with this legislation and, while it did reduce plastic bag usage somewhat, it was not successful in bringing plastic bag usage back to the level achieved when the levy was first introduced in 2002.

This demonstrates that greater flexibility is required, both in setting the plastic bag levy rate and in amending the level of charge as circumstances require. I will bring forward legislation to provide for this required flexibility and a Regulatory Impact Analysis has been carried out in respect of this proposed legislation. While the provisions of the proposed legislation would allow for an increase to 44 cent, any amendment to the level of charge will have regard to both the level of plastic bag usage and changes in the consumer price index.