Budget 2017 produced a mix of results for sport but one additional element which may have an impact was deferred to 2018 at the earliest.
The introduction of a ‘Sugar Tax’ on soft drinks has been rejected by the Department of Finance in each of the last three years but increased concern over levels of obesity have forced a rethink with the announcement of a consultation process ahead of a parallel introduction alongside a similar mooted tax in the UK in two years time.
The impact this could have on commercial support for sport and physical activity is unknown as yet.
Informed sources we spoke to last night in the Soft Drinks industry said that it was too early to tell what the impact might be on specific partnerships, campaigns or investments but that this would ‘change the external environment’ in which we are operating.’
The industry has moved towards reformulation of products with a greater emphasis on low or no sugar drinks and greater on pack information but the obesity numbers keep rising and brands like pepsi and Coca Cola are in the firing line.
The actual evidence on whether there is a long term benefit from a tax is unclear, especially in anything but the short term. The perception though is that it would and politics is often more about that than reality.
The consultation process will doubtless lead to some entrenched battle lines being formed.
It can only be hoped that investment such as Coca Cola’s in the Dublin Bike Scheme and funding through its foundation that goes to sporting causes; or Red Bull’s investment in adventure sports and the high regard Ireland holds in its global policy towards creating events in relation to cliff diving, surfing and GAA will not be pared back or abandoned as a casualty.
