Irish Minister for the Environment John Gormley has received permission to draft a bill proposing a twofold hike to Ireland’s EUR20 (per tonne) landfill tax, a level which, he believes, needs to quadruple in the coming years. The bill will also provide for the introduction of an incinerator tax in Ireland, which will enter into force in 2011.
Gormley underlined that the two measures would be crucial to promoting recycling in Ireland. Gormley warns that for Ireland to reach its goal of recycling 80% of its biodegradable waste by 2016 – doubling its current recycling level – will require significant tax reforms to change businesses’ behaviour. He advocates that the use of incinerators and landfill as a means of waste disposal should be increasingly disincentivized over the coming years, and any economic advantages for companies operating landfill sites and incinerators removed.
Part and parcel of Gormley’s proposed reforms is the creation of a EUR13m fund, funded by the new hikes, to subsidise the creation of ‘waste entrepreneurs’; companies which will create wealth from manufacturing using recycled materials. Currently a large portion of Ireland’s recycled materials are instead processed and manufactured in China, a trend Gormley wishes to end.
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