Mick Wallace (Wexford, Independent)
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38. To ask the Minister for Finance the reason a fat and sugar tax was not introduced in the Finance Bill; and if he will make a statement on the matter. [49210/13]

Michael Noonan (Limerick City, Fine Gael)
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There have been calls from a number of different quarters for me to introduce so called fat and sugar taxes as a means to curb obesity rates in the country. While I am not opposed to such a measure in principle, I’m aware that little research has been done in relation to the efficacy or impact of such a measure or indeed how these taxes would be designed and levied.

When introducing any tax measure intended to alter people’s behaviour, it is important to firstly to assess whether a tax measure is the most effective method of doing this or if better results could be achieved by other, non-fiscal, methods. Secondly it is necessary to evaluate if such a measure have unintended consequences on other areas.

Therefore, I believe that before any such taxes could be seriously considered, further work is required in relation to the possible nature and design of such taxes. Work is also needed to consider how such taxes would be implemented and collected, and an analysis of the impact of the proposal on employment, on the cost of living and cross border trade is also required.

Finally, it should be noted that the Danish Government withdrew the saturated fat tax it introduced in 2011, citing higher prices to consumers, higher administration costs, putting Danish jobs at risk, and an increase in cross-border purchases withdrawal.