Extracts from a MAFF report:
Glycoalkaloids are a group of natural toxicants which are present in potatoes. Concentrations are highest in the sprouts and peel and are greater when the potatoes are damaged. Removal of the sprouting and other damaged areas, together with peeling, substantially reduces their concentration in potatoes.....With regard to the toxicity of glycoalkaloids, the Committee concluded that the risk to the population was low, provided that damaged, green and sprouting areas of potatoes were removed. If potatoes still taste bitter after removal of the green and/or sprouting parts, then they should not be eaten.