The government denies that Coca-Cola is trying to use blackmail by the company withdrawing a €40 million expansion plan at its plant in Palmela.
The economy minister said today that he is not "aware of any blackmail" after the US company suspended its investment at the Refrige plant over its annoyance at Portugal’s new 'sugar tax' on soft drinks that will hit Coca-Cola as Portugal's biggest supplier.
The government says it refuses to be blackmailed by companies and adopted a diplomatic stance, referring to Coca-Cola’s move as ‘lobbying’ rather than blackmail.
The Economy Minister, Manuel Caldeira Cabral, said to parliament today, "I think this company will continue to work and have investments in Portugal and at the moment is trying to do the legitimate job of lobbying.”
Coca-Cola European Partners had planned to invest € 40 million to expand the Refrige plant in Palmela but suspended the project over the government’s plan for a ‘fat tax’ that will add between 8 and 16 cents per litre of sugar-filled soft drinks.
The minister was responding to questions from CDS MP Pedro Mota Soares, who had pointed out that increasing the tax burden on this sector would cause damage in future investments.
In his speech, the minister insinuated that the the CDS-People's Party was doing a good 'lobbying' job for Coca Cola.
In his response, Pedro Mota Soares rejected this idea, "The minister has accused my party of lobbying on behalf of a company, but I have talked to the workers’ union from this company which has told us that measures like these affect investment and jobs.”
Whether Coca-Cola will indeed cancel the investment or not is yet to be seen but what is clear is the minister's stance that the investment is for Coca-Cola to decide.
