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Government considers tax on plastic bags

A consultant's report, commissioned by the Government, has recommended a new tax on plastic bags. The Government is considering the report, which recommends a tax of between three and ten pence on each bag. Any increase is expected to be passed on to consumers.

Last night, the Minister for the Environment, Noel Dempsey, warned that he was committed to introducing a tax on plastic bags handed out free at shops and supermarkets to raise millions to counter the litter problem. The "Consultation study on plastic bags", which his department has published, says the day of the plastic bag is coming to an end.

The Irish plastics industry, which produces 21% of plastic bags used here, says that it is taking legal advice on whether such a move is legal under the EU's Packaging waste Directive. They are siting the example of Denmark, where a Government attempt to ban aluminium cans was defeated. The tax would be put on suppliers, and it is expected that it would be passed on to the customer.

The report also says that better litter control measures by local authorities may be more effective, as a tax would only reduce bag consumption. 177 people are employed in the Irish plastic bag industry.