Retail body hits out 20c coffee cup levy

/ 7th June 2022 /

A proposal to introduce a cup levy of 20 cent on coffee cups has been criticised for sending the "wrong message" about sustainability.

It was announced in March that a charge on disposable coffee cups will be introduced later this year as part of a string of new environmental measures.

However, Retail Excellence Ireland has called on the Government to rethink the strategy. Managing director Duncan Graham said the proposed levy on single-use cups sent out a mixed message.

He said: "It is good to see the Government place a real emphasis on sustainable measures but the coffee cup levy does not make sense. It wants consumers to use reusable cups, but these are generally made from plastic. Single-use cups are compostable and will degrade naturally.

"This sends out a mixed message at a time when the cost of living is soaring and retailers and consumers cannot afford a further levy on goods."

Mr Graham said multiple-use items such as cups and bowls require restaurants and shops to install new washing and drying systems.

Tomorrow, Retail Excellence Ireland is launching the Sustainable Irish Retail Action (SIRA) guide. A survey by SIRA of 232 retailers between February 11 and March 3 this year found that 74% are concerned about the effect of climate change on their business.

cup levy — It was announced in March that a charge on disposable coffee cups will be introduced later this year as part of a string of new environmental measures.

Some 77% believe they will need to offer more sustainable products and services in the future, while 59% said trying to be as sustainable as possible will cost their business money.

Over half (57%) believe tackling climate change and promoting sustainability are primarily the Government's responsibility.

Mr Graham said: "The retail industry has just emerged from the worst two years of trading on record and now business owners - and SMEs in particular - have to contend with rapidly rising inflation, supply chain problems and a nationwide staffing crisis.

"On top of all that, consumers are increasingly demanding the sustainable option, but that costs money which retailers simply cannot afford."

The Department of the Environment was contacted for comment.