US envoy lobbied over gum tax

US ambassador James Kenny lobbied the Government against the introduction of a tax on chewing gum, Minister for the Environment…

US ambassador James Kenny lobbied the Government against the introduction of a tax on chewing gum, Minister for the Environment Dick Roche confirmed yesterday.

Speaking on TV3's The Political Party, Mr Roche said the ambassador had spoken to him twice on behalf of Wrigley's chewing gum, to lobby against the against the introduction of a tax.

"The US ambassador came in to see me, yes he did, once, but he spoke to me about it twice," Mr Roche said. "He came to introduce a group who were representing Wrigley's."

Mr Roche denied that the lobbying was inappropriate. "I don't think it is inappropriate, our ambassadors would actually lobby for Irish companies interests elsewhere - well that's what we're always telling them to do."

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In the event the Government decided not to go ahead with the tax despite the recommendations of a report commissioned by the Department of the Environment in 2002 which advocated the measure.

Instead, Mr Roche reached agreement with chewing gum manufacturers on an annual contribution of more than €2 million from the industry. Under the terms of the deal, the money will be invested in an education, research and prevention programme aimed at reducing chewing-gum litter

The tax would have netted between €4 million and €5 million a year, but Mr Roche maintained that a tax was less likely to achieve the aim of reducing chewing gum litter.

The deal followed intensive negotiations with manufacturers led by US firm Wrigley's, which has nearly 90 per cent of market share in the sector.

The cost of cleaning chewing gum off the streets around the State is estimated to run into millions of euros each year.

Stephen Collins

Stephen Collins

Stephen Collins is a columnist with and former political editor of The Irish Times