Finian McGrath
Ceist:83 Mr. F. McGrath asked the Minister for Finance if he will consider a proposal to have a small increase in VAT on goods to pay for bin collections. [23722/03]
Adjournment Debate. - Local Authority Service Charges.
The Minister for the Environment, Heritage and Local Government has primary responsibility for policy in relation to service charges levied by local authorities. I am advised that the levying of waste charges gives effect to the polluter pays principle, which is reflected in both EU legislation and our own Waste Management Act 1996. The EU Commission has made it clear that the Waste Framework Directive 75/442 requires, in accordance with the polluter pays principle, the application of waste charges to all waste producers, including households, and that it would be prepared to take infringement procedures against Ireland under Article 169 of the treaty in the event that household waste charges were not imposed.
It is not customary for me to indicate in advance what tax changes will be made in the annual budget. In any event, if there were an increase in the rate of VAT, it would be used to fund general expenditure, and not earmarked for any special purpose.