Minister backs off chewing gum tax in deal worth €2m

Minister for the Environment Dick Roche has reached agreement with chewing-gum manufacturers on an annual contribution of more…

Minister for the Environment Dick Roche has reached agreement with chewing-gum manufacturers on an annual contribution of more than €2 million from the industry, writes Liam Reid, Political Reporter

As a result of the deal, which will see the money invested in an education, research and prevention programme aimed at reducing chewing-gum litter, the Government has now decided against the introduction of a tax on the product.

The tax, which was recommended in a 2002 report, would have netted between €4 million and €5 million a year, but Mr Roche claimed last night that a tax was less likely to achieve the aim of reducing chewing-gum litter.

"This was never about trying to get people to stop chewing gum," he said.

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"It was about stopping people from spitting it on to the street. The focus of the programme will be on getting people to change their behaviour."

The deal followed intensive negotiations with manufacturers, led by US firm Wrigleys, which has nearly 90 per cent of market share in the sector.

The firm was involved in intensive lobbying to prevent the introduction of the tax, amid fears that it would then be copied by other countries.

Negotiations almost broke down last October over the level of contribution and a commitment to funding research on developing less adhesive gums.

However, an agreement was reached in recent weeks which will see a pilot programme introduced into three towns and cities.

This will include, among other things, education and advertising campaigns on chewing-gum disposal, the use of extra bins and increased litter enforcement activity.

The cost of cleaning chewing gum by special street-cleaning machines is now estimated to run into millions of euro across the State.