Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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258. To ask the Minister for Finance the consultation his Department has had with his counterparts in the UK in respect of the sugar sweetened drinks tax; if his attention has been drawn to recent announcements in the UK that revenues from the UK soft drinks industry levy are to be ring-fenced for a healthy pupils capital programme; if it will be possible to ring-fence some of the funding generated by the tax for specific purposes; if he has given consideration to same; and if he will make a statement on the matter. [19824/17]

Michael Noonan (Limerick City, Fine Gael)
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As outlined in Budget 2017, it is my intention to introduce a tax on sugar-sweetened drinks in April 2018, which will coincide with the introduction of a similar tax in the UK at that time. Officials from my Department are in contact with their UK counterparts to ensure, once introduced, the tax operates efficiently, fairly and effectively.

In general I am opposed to ring-fencing revenues, as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time. This constrains expenditure decisions and can distort the allocation of resources resulting in reduced value for money and sub-optimal outcomes. Accordingly, I do not intend to hypothecate sugar-sweetened drinks tax receipts.