The Programme for Government agreed earlier this year indicated that the new Government would seek to introduce a levy on packaging after appropriate consultation with industry. An initial public consultation on the issue ran until August 2011. IBEC responded with a detailed submission outlining a number of concerns.

A formal proposal on a possible packaging levy has not been published and so the potential implications are unclear at this stage, beyond expected cost considerations and interference with the existing successful producer responsibility model for packaging waste.

IBEC understands that the objective of a possible packaging levy would be to change producer and consumer behaviour in order to prevent packaging waste arising. A packaging levy could be material-based, volume-based or weight-based.

An initial public consultation on the issue closed on 5 August 2011. The Department of the Environment has analysed responses and may consider a further consultation on a number of defined packaging levy options. Should a formal proposal for a packaging levy emerge, IBEC believes it must be accompanied by a cost benefit analysis and further consultation.

IBEC understands that the issue of a possible packaging levy is to be revisited in the context of a wide-ranging review of Producer Responsibility Initiatives (PRIs) in 2012.

IBEC's position on the initial consultation is attached below.