Irish plastic bag tax raised as usage grows

The first price increase in its five-year history, the levy on plastic carrier bags is to rise from the current 15c (about 10 pence) rate to 22c (about 15 pence) from July 1.

” What I want to see is less use of plastic bags and more use of long life bags. “
– Dick Roche
The Irish government said when the plastic bag tax had been brought in, the use of plastic carrier bags dropped “overnight” from an estimated 328 bags per capita to just 21. It said the levy also brought about a 95% drop in plastic bag litter.

But last year saw usage rise to 30 bags per head of the population.

The Republic's minister for the environment, heritage and local government, Dick Roche, said on Wednesday he was anxious that the impact of the levy be sustained.

Mr Roche said: “Data from levies remitted and population estimates provided by the Central Statistics Office, would indicate that plastic bag usage rose to 30 bags per capita during the course of 2006. I am increasing the levy to the maximum of 22 cent allowable under the existing legislation. I am satisfied that it will have the desired effect in stemming the pattern of increased usage of plastic bags that has been evident.”

Funds
The levy raised the equivalent of 12.6 million in 2006, and has raised the equivalent of 50 million since 2002. Funds raised by the levy are ring-fenced for projects to increase recycling in Ireland.

Mr Roche said the levy was not a way to raise money for the government, and that he would be happier to see a reduction in the tax revenue on account of fewer bags being used.

“As far as the plastic bags levy is concerned 'less is more'. I will be happier to see a decrease in revenue on account of the increased levy. What I want to see is less use of plastic bags and more use of long life bags,” the Minister concluded.

In the UK, Defra ministers have stated opposition to the idea of a national carrier bag tax, preferring to see voluntary measures taken by retailers to cut carrier bag use.