Cantillon: Is ‘fat tax’ idea the thin end of the wedge?

A dire new World Health Organisation study warns that Irish people are on course to become the most obese in Europe by 2030.

Such findings raise questions as to whether a “fat tax” should be introduced to discourage consumption of sugar, salt and saturated fat, not quite a matter of enthusiasm in the food sector. The same could be said of any move to introduce plain packs for snacks along the lines of plain tobacco packs, a notion already mooted by one member of the Oireachtas committee on health and children.

In a debate two years ago on the tobacco plan, Fine Gael TD Mary Mitchell O’Connor, drew parallels with the food sector. “I refer to obesity, especially childhood obesity, an issue on which I have been working with a number of groups. Would the Minister consider doing much the same in the case of products with a high sugar and high salt content?”

Battles may well follow. Ireland’s food lobby first challenged the merits of a “fat tax” years ago, claiming in pre-budget submissions that such moves would have no impact on obesity levels and would encourage consumers to do their weekly shopping in the North.

Meanwhile, the focus at the level of global business is turning to plain packs. The World Intellectual Property Review reports a lawyer for snack group Mars telling a San Diego conference this week that the "million dollar question" for brand owners is whether confectionery is targeted for plain packs .

Sophie Anger, associate general counsel at Mars, said her company and others were mindful of the possibility, even though they did not know whether such laws would follow. “If we are forced to remove our branding this will have an impact. It will make it harder for us to enforce our brand, distinguish ourselves from our competitors and it will make counterfeits easier to produce.”