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Dáil Éireann debate -
Wednesday, 14 Nov 2001

Vol. 544 No. 1

Adjournment Debate. - Environmental Policy.

EPI, or Europlast as it was originally, has operated in Gweedore industrial estate since 1972. The original company was taken over in 1998 by an Italian company based in Milan and since then operates as EPI, Earraí Pacallaí Idirnáisiúnta Teoranta, engaged in the manufacture of low density patch handle bags and its custom base is almost exclusively the high street retailer, such as Brown Thomas, Kilkenny Woollen Mills and Aer Rianta. It produces 70 million bags per annum which is less than 6% of the annual usage of 1.2 billion bags in this country as estimated by the Department of the Environment and Local Government.

The present crisis in the company results from the Government's proposal to put a levy of 15 cent on each bag from 4 February 2002. I favour protecting the environment and we all know the devastation that can be inflicted by the discarding of cheap, low standard plastic bags throughout the country. When the Bill went through the Dáil, I spoke in support with the provision that high quality bags should be exempt.

EPI employs 23 people and is considered one of the best employers in terms of pay and conditions on the Údarás na Gaeltachta estate in Bunbeg. Many workers have been there since 1972 and will find it difficult, if not impossible, to find alternative employment, particularly in Donegal where the employment rates are consistently so high. If the factory closes, many of them may spend the rest of their working lives on the unemployed register. Many are the sole bread winners of their families and have financial, mortgage and educational responsibilities that will be impossible to meet if made redundant.

The vast majority of EPI's customers have already ceased to purchase its bags as they switch over to alternative paper bags. EPI, a manufacturer of high quality, reusable and 100% recyclable carrier bags, has received the last orders from its Irish customers and some of the workforce have been made redundant. The solution is to exempt these high quality bags from the levy. There is a precedent as high density, low quality carrier bags used by food stores are exempt. All major food retailers are currently ordering the new size carrier bag and as a consequence, one might say, the proposed levy will actually increase the use of the cheap, high density bag. This is the type that usually litters our countryside and probably the main reason for the introduction of the levy in the first place.

The Minister met the management, union and employees of EPI and knows at first hand the drastic consequences of closure. I urge him to adopt a sympathetic response to their plight. If an exemption is granted, there is no reason this Donegal Gaeltacht industry should not continue to prosper and increase its workforce.

Má chailltear suas le 25 phoist in EPI beidh sé ina bhuille crua do Ghaeltacht Dhún na nGall. Tionscal é seo atá bunaithe agus lonnaithe san eastát i nGaoth Dobhair le beagnach 30 bliana. Cuirtear fostaíocht den scoth ar fáil ann faoi choinníollacha oibre maithe agus tuarastail fhlaithiúla. Má chailleann na hoibrithe seo a gcuid postanna, cuid acu ansin ó bunaíodh an tionscal 30 bliana ó shin, beidh sé thar a bheith deacair orthu fostaíocht eile a fháil sa cheantar. Sé an fáth go bhfuil an tionscal i mbaol ná go mbeidh cáin ar mhálaí plaisteacha ón 4ú lá de mhí Feabhra seo chugainn ar aghaidh. Aontaím go gcaithfear an timpeallacht a choimeád glan ach ní hiad na málaí den ard chaighdeán a chuireann EPI ar fáil atá ciontach. Is málaí de chaighdeán íseal a dhéanann an dramhaíl seo. Sílim go bhfuil fuascailt na ceiste i lámha an Aire agus eisceacht a dhéanamh den chineál mála atá á gcur ar fáil ag an tionscal seo.

I thank the Deputy for giving me the opportunity of setting out the position on this matter. I am aware of the concerns expressed by EPI Teoranta in relation to the levy on plastic shopping bags, which is to be introduced in February, and its impact on the business of EPl's factory in Gweedore. The Minister met with a delegation from EPI Teoranta in Donegal on 11 October and a delegation also had detailed discussions with officials of my Department on 22 October. EPI seeks an exemption from the regulations for the low density plastic bags they manufacture.

The regulations introducing the 15 cent levy on plastic shopping bags, from 4 February next, were published in draft form on 18 September. A two month consultation period was provided to give interested parties an opportunity to make comments or observations in relation to the draft regulations. This consultation period is now coming to an end and the Department is currently examining the submissions that have been made, including the case presented by EPI, to see if the draft regulations need to be adjusted before they are finalised.

A number of interested parties sought changes to, or exemptions from, the regulations. For this reason it is neither desirable nor appropriate for me to address any specific submission in advance of final decisions in relation to the total consultation which has been conducted. The plastic bags levy has been the subject of substantial study and consultation so far and detailed design considerations have already been addressed arising from previous consultation. Submissions in relation to this final phase of consultation are now being evaluated and the final regulations will be made within the next few weeks.

This levy is being introduced because, as a society, in marked contrast to many other countries, we make profligate use of plastic bags without having any regard to the consequences. It is conservatively estimated that 1.2 billion plastic shopping bags are provided free of charge to consumers at retail outlets annually. This equates to roughly 325 plastic bags per person per year.

Plastic bags are a visible and persistent component of litter pollution throughout the country. They impact on ecosystems, habitats and wildlife. Their prevalence suggests that we are careless about our environment and our environmental image. However, the promotion of reusable "bags for life" by major retail multiples in advance of the levy is a very welcome development, and one which shows that there is public demand and support for alternatives to disposable plastic bags. Finally, while the levy will generate revenue for beneficial environmental purposes, I wish to emphasise that the primary goal in introducing it is to change consumer behaviour. I am satisfied that the public will welcome this measure and respond to it in a positive way.

The Dáil adjourned at 9.30 p.m. until 10.30 a.m. on Thursday, 15 November 2001.

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