Will a chewing gum tax work?

vinnyfitz

Press release from environ.ie:

Government publishes Study on Chewing Gum, Fast-Food packaging and
ATM receipt litter

Study proposes levy or negotiated agreement options on chewing gum

Cullen announces public consultation on Study

A Government commissioned Study has presented a number of options to tackle litter, including the possibility of a 10% levy on chewing gum. The Study proposes that the money raised by any levy would go towards the cost of cleaning up chewing gum litter on street pavements and other environmental measures.

The Study, which focussed on chewing gum, fast food packaging and ATM (automated teller machine) receipts, was published today (23rd September, 2004) by the Minister for the Environment, Heritage and Local Government, Martin Cullen TD.

On chewing gum, the Study proposes either:
· A mandatory 10% levy (average 5-cent per pack) on chewing gum purchases. The money raised (estimated €4-5m per annum) would meet part of the social cost associated with chewing gum or;
· A negotiated agreement between Government and Industry aimed at developing industry funded strategies to tackle chewing gum litter

On fast food packaging, the Study recommends:
· A negotiated agreement between Government and the fast-food industry involving increased litter bin capacity (funded by the industry) close to fast food outlets and the branding of all fast food packaging with the outlets name. It would also include improved management systems for litter control in the immediate vicinity of fast food outlets. Failure to deliver on agreed targets would result in the introduction of a 'point of sale' levy of 2% of price charged in respect of fast food consumed off premises. Such a levy would raise an estimated €3.7m per annum

On ATM receipts, the Study recommends:
· A negotiated agreement between Government and the banking sector aimed at reducing instances of ATM receipt litter. Failure to deliver on agreed targets would result in the introduction of a 1-cent levy on ATM transactions. Such a levy would raise an estimated €400,000 per annum

Announcing a 4-week period to allow the public to comment on the Study, Minister Cullen said he hoped the Study would not only lead to public debate on how we can tackle litter but also encourage people to think about how littering is "unsightly and expensive".
He said: "Concerted and innovative action is required to if we are to successfully address the litter problem in Ireland. The plastic bag levy is proof that litter levies if applied properly can work. Numerous litter reports have show that chewing gum is a problem on our streets."

Minister Cullen said the Study provides a solid basis for developing effective responses to these forms of litter pollution. "Before making a definitive decision on the matter, I think it is important to allow the general public, interested stakeholders and NGOs to participate in the debate on the Study's findings. Upon completion of the public consultation, the various comments and submissions will be assessed, brought to Government for consideration and a decision announced", he said.

The Minister added that he had commissioned the Study against the background of two reports by the Litter Monitoring Body which had identified these items as particularly problematic forms of litter. In the most recent report by the Litter Monitoring Body for 2003 chewing gum accounts for 28.26% of all litter. (See below.) In 2002, chewing gum was identified as the single largest component in the food litter category, and as the second largest component of overall litter after cigarettes. Fast-food take-away packaging was identified as the largest component in the packaging litter category, while ATM receipts were identified as a significant element of paper litter.

"The two Litter Monitoring Body Reports provide valuable statistical data in relation to litter pollution in Ireland and justification for the introduction of effective measures to deal with these problem areas", the Minister added.

"While positive progress has been made on litter management - and in changing people's attitudes towards litter in recent years, there is still a long way to go. Furthermore, the costs incurred by the taxpayer in litter management and street cleaning are quite substantial – an estimated €70million in 2003 – of which only €2.74m was offset by litter fines, with the balance having to be funded from local authority resources. Progressive action is therefore needed to reduce not only the amount of litter on our streets, but also the associated costs incurred by the taxpayer in dealing with it", the Minister concluded.

The consultants report may be accessed via the Department's website (www.environ.ie). Alternatively, copies of the report can be obtained from Waste Prevention and Recovery Section, Department of the Environment, Heritage and Local Government, Custom House, Dublin 1 – telephone (01) 888 2777. Advertisements in relation to the public consultation will be appearing in the national press.

ENDS

Praetorian

I'm sorry but I'm terribly bitter at the moment, I just had €450 stolen on me!

The study probably cost € x million so they may as well start charging these levies to make the money back. The "new" O'Connell Street is already ruined by senseless people spitting out their gum rather than going the rather long distance to the bin.

Perhaps some kind of police department dedicated to fining litter bugs could help. People would be much less likely to break the law in this fashion, if you were slapped with a nice hefty fine.

grumpytrousers

Perhaps some kind of police department dedicated to fining litter bugs could help.

I see where you're coming from, but if that were to get kicked off, people would start with the 'shouldn't they be catching real criminals', 'aren't they just cherry picking high profile locations' etc.

People who 'cause' litter (like gum chewers) should pay for the cleanup of their masticated mess.

regarding the ATMs, I think that initially the default option on the machines should be set such that you HAVE to ask for an advice. As things stand (at least on BOI ones) you get a Yes/No choice...but perhaps if it went to the point that you had a 5 second window to hit a button to generate one would be even more effective....

regarding fast foot litter...you've a lot more chance of a lot less litter by having more bins more empty more of the time. If that means lads going around on a saturday afternoon emptying the bins outside supermacs around the country then that's what you do...

Hagar

Between the smoker's throwing butts outside every workplace in the country, the new non-smokers spitting their Nicorette gum on the ground, the knacker drinkers and their empty cans and all the hungry fookers throwing food wrapping about the place we're going to Hell in a handbasket.

Victor

500 million = 1.25 tonnes of chewing gum for ewveryone in hte country ....

http://home.eircom.net/content/unison/national/4068680?view=Eircomnet

Minister to stick 5c tax on chewing gum sales
From:The Irish Independent
Thursday, 23rd September, 2004

THE Government will today publish proposals for a 5c levy on every packet of chewing gum.

The cash collected will go towards the massive cost of cleaning more than 500 million tonnes of the sticky gum now clinging to Irish streets.

The detailed plan will be revealed by Environment Minister Martin Cullen in a 100-page report by consultants McIver Consulting, engaged by the Government to examine how to introduce the levies.

The report will also outline plans for levies on polystyrene fast foot wrapping and ATM receipts, but will say these can be avoided by negotiation if the industries involved are prepared to scrap this form of litter.

This idea is for a voluntary code of practice similar to that recently agreed and implemented with the fast food industry in Britain.

The report recommends a range of environmental levies including 10pc of the price of a packet of chewing gum, amounting in most cases to about 5 cents, the Irish Independent learned last night.

The minister is expected to announce that he plans to bring the proposals to Cabinet following a four week period of public consultation.

It would initially raise up to €4m a year based on the current chewing gum sales of more than 80 million packets.

The levy on chewing gum will be collected by the Revenue Commissioners and, if agreed by the Cabinet, will be ringfenced and re-directed to local councils for gumbuster street cleaning machines.

Under the consultants' proposals the clean-up charge would be imposed at the point of sale with the recommended levy incorporated in the price of the product.

Taxpayers pick up a multi-million euro bill every year to remove chewing gum - and it costs more to remove it from our streets that it does to buy.

Dublin City Council removed 180,000 pieces of gum from Grafton Street in one month at a cost of nearly €25,000 - or seven pieces a euro.

The report will show that the costs incurred by the taxpayer in litter management and street cleaning are massive, an estimated €70m a year of which only €2.74m is offset by litter fines.

Chewing gum giants Wrigleys lobbied government ministers in a bid to have the chewing gum tax scrapped insisting it's illegal.

But their concerns on the impact of the clean-up tax - including strong criticism of Mr Cullen's handling of the issue - have been emphatically rejected by the minister.

Treacy Hogan Environment Correspondent

vinnyfitz

Well they seem to estimate, on the basis of their revenue predictions, that 100 million packs of gum are sold every year...
How many packs of gum generate one tonne of rubbish? Must be a lot more than 20 packets.
Maybe Tracey got a bit carried away with his maths.

Mind you even 100 million packs of a gum a year is a disgusting thought.

bonkey

grumpytrousers wrote:

regarding the ATMs, I think that initially the default option on the machines should be set such that you HAVE to ask for an advice. As things stand (at least on BOI ones) you get a Yes/No choice...but perhaps if it went to the point that you had a 5 second window to hit a button to generate one would be even more effective....

There seem to be two types of ppl asking for receipts.

1) A minority who actually use the receipts for personal finance management and balancing their a/c by hand.

2) A majority who ask for a receipt in order to see what their balance is after they've taken the cash out. Once balance is checked, paper gets dumped.

This latter group are the problem. Forcing them to explicitly ask for a receipt in a different way isn't likely to change anything. Charging them to use this option, instead of asking the ATM for an on-screen balance seperate to withdrawing money seems like a good way to encourage them to get the info on-screen.

Maybe ATMs should start offering three withdrawal options :

1) WIthdrawal only
2) Withdrawal with on-screen balance
3) Withdrawal with receipt.

jc

BrianD

I don't think that the chewing gum tax will make the slightest bit of difference to the littering behaviour of the Irish public. Granted that the revenues raised may be used to fund the clean up.

We are notoriously price insensitive and a rise in price will be accepted with no resulting change in behaviour. Just like alcohol and tobacco price increases have not affected consumption in the past. Furthermore, if money is made available for additional cleansing the gum chewing public will take it as a green light to spit on the streets as they are "paying" someboby to clean it. You know the way Irish people think that fast food workers are paid to clean up after them and council workers are paid to clean up the mess on the street that they leave behind?? Hard to comprehend sometimes.