International Review of Waste Management Policy - Department of ...

ags in 2003, compared with 36% in 1999, which suggests that the switch to paper
bags was a far from universal switch. 583
27.6.2 Environmental Benefits Associated with Recycling
In 2007, of the €57,725,535 generated in income from the Environmental Fund
(€22,577,535 of which was generated in income from the plastic bag levy), the
following was spent on Recycling Initiatives:
493
� “Waste Management including Recycling Projects”, €17,246,428, this
represents payments made to local authorities to assist in costs associated
with the provision of waste management infrastructure.
� “Recycling Operational Costs”, €11,914,847, this represents payments made
to local authorities to assist in costs associated with the operational costs of
waste management.
The above figures illustrate that a large number of recycling facilities/infrastructure
have been put in place due to the monies available from the Environmental Fund.
Therefore, although the direct effect of the levy on recycling appears to have been
zero, indirectly, the plastic bag levy can be said to have had a positive impact on
recycling in Ireland as it provides local authorities with the funding to develop
recycling facilities. In addition, it would be easy to understate the potential influence
on public awareness that such a policy may have had in making some citizens more
aware of ‘waste’ as an issue of legitimate concern.
27.7 Implementation Costs
The set up (establishment) costs were €1.2 million. This included purchase of new
computer systems and additional resources needed to administer the levy. Annual
administration costs are in the order of €350,000. Advertising costs arising from the
publicity campaign to launch the levy amounted to €358,000 584 .
Receipts from the plastic bag levy amounted to €9.6 million in the first year. Taking
into account start-up and ongoing administrative costs, total net receipts from the
plastic bag levy amounted to around €8 million. The levy was expected to generate
around €11 million in a full year; however the latest figure from the Environment Fund
Accounts 2007 show the income from the levy was €22,577,535 in 2007, of this the
Environmental Levy Collection Costs (the annual service fee agreed with the Revenue
Commissioners for the operation of the plastic bag levy), amounted to €388,025 585 .
This equates to approximately 17% of the revenue received.
583 Department of Environment, Heritage & Local Government, Press Release, 21/07/2007
584 Simon McDonnell and Susana Ferreira (2007) The most popular tax in Europe? Lessons from the
Irish plastic bags levy, Environmental and Resource Economics, September 2007, vol. 38, no. 1, pp. 1-
11(11).
585 Environment Funds Account (2007)
International Review of Waste Policy: Annexes