Dáil Éireann Debate, Wednesday - 22 November 2023
66. Deputy Colm Burke asked the Minister for Finance to give due consideration to establishing an expert group to advise the Government on the implementation of the Commission on Taxation and Welfare Report, recommending Government to develop fiscal measures to encourage a reduction in the consumption of ultra processed foods, to reduce the harms of such foods and to promote healthier eating; and if he will make a statement on the matter. [51500/23]
View answerGovernment policies around the consumption of ultra processed foods and promotion of healthy eating are, in the first instance, the responsibility of my colleague the Minister for Health. I, and my officials, will engage with that Department on any fiscal measures that may come under consideration.
A Healthy Weight for Ireland, the Obesity Policy and Action Plan (OPAP), was launched 2016 under the auspices of the Healthy Ireland Framework (Healthy Ireland: A Framework for Improved Health and Wellbeing 2013-2025). It was developed in recognition of the growing need for a co-ordinated policy response to the increasing prevalence of obesity in Ireland. OPAP covers a 10-year period up to 2025 and aims to reverse obesity trends, prevent health complications, and reduce the overall burden for individuals, families, the health system, and the wider society and economy. It recognises that obesity is a complex, multi-faceted problem and needs a multi-pronged solution, with every sector of society playing its part.
OPAP includes a suite of prevention measures which were identified by the World Health Organisation (WHO, 2008) as cost-effective interventions, ranging from education and schools-based programmes to reformulation and fiscal policies with the aim of gradually changing Ireland’s obesogenic environment to facilitate consumption of healthier foods and drinks.
The introduction of an Irish Sugar-Sweetened Drinks (SSD) tax was first announced in the Programme for Government in May 2016 and was included in the suite of commitments under the Obesity Policy and Action Plan. The SSD tax was announced in Budget 2018, setting out the applicable tax rate structure, and the tax came into effect on the 1st of May in 2018.
The aim of the Irish SSD tax is to reduce rates of childhood and adult obesity in Ireland by reducing the consumption of sugar sweetened drinks as a contributor to health and dental deterioration, particularly among young people. The desired outcomes are twofold: (1) that individuals reduce consumption of sugar sweetened drinks by reducing amount consumed or switching to healthier choices; (2) that industry reformulates products to reduce (not necessarily remove) levels of added sugar in the drinks products.
The SSD tax is the first such fiscal measure in Ireland and a commitment was given to undertake an evaluation of the sugar sweetened drinks tax against the stated aims of the tax. Following an internal scoping review, the Department of Health went to tender for an external evaluation of the SSD Tax in August 2023.
Outcomes of interest from the study are primarily around the impact of the tax on the consumption of SSDs and on reformulation of SSD products. The contract for the evaluation was awarded in October and the evaluation is expected to be complete in Q1 of 2024. The results will be published in due course.
The results of this evaluation will inform future approaches to similar fiscal measures on high salt or highly processed foods. New tax policies are outlined and kept under review as part of the Department's Tax Strategy Group Paper.
