Plastic Bags - COAG Standing Council on Environment and Water
Plastic Bags - COAG Standing Council on Environment and Water
Plastic Bags - COAG Standing Council on Environment and Water
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This opti<strong>on</strong> would be similar to the system applied in Irel<strong>and</strong>, where the government imposed a<br />
m<strong>and</strong>atory 15 Euro cents (A$0.27) plastic bag levy. This charge is paid by the c<strong>on</strong>sumer at the<br />
point of sale for every plastic bag issued.<br />
5<br />
10<br />
15<br />
20<br />
25<br />
30<br />
35<br />
40<br />
45<br />
50<br />
If a similar scenario to Irel<strong>and</strong>’s was chosen, this opti<strong>on</strong> may involve a regulati<strong>on</strong> that includes:<br />
• a charge to be applied at the point of sale in shops, supermarkets, service stati<strong>on</strong>s <strong>and</strong> all<br />
retail outlets that supply plastic bags<br />
• a requirement that retailers pass <strong>on</strong> the full amount of the levy as a charge to customers at<br />
the checkout<br />
• the charge for a plastic bag to be itemised <strong>on</strong> all invoices, receipts or dockets issued to<br />
customers<br />
• the levy to be set at a specified amount (e.g. $0.10 per bag)<br />
• exempti<strong>on</strong>s from the levy be given for:<br />
o plastic bags that are used solely to c<strong>on</strong>tain:<br />
• fresh fish, meats <strong>and</strong> poultry products<br />
• fruit <strong>and</strong> vegetables<br />
• nuts, dried fruit <strong>and</strong> c<strong>on</strong>fecti<strong>on</strong>ary<br />
• dairy products<br />
• cooked food (hot or cold)<br />
• ice<br />
o plastic bags that are designed for re-use <strong>and</strong> are purchased by the customer for at<br />
least an amount equal to the levy<br />
o charity collecti<strong>on</strong> bags <strong>and</strong> other plastic bags that are provided for the purpose of<br />
being filled <strong>and</strong> returned to the supplier.<br />
• administrati<strong>on</strong> <strong>and</strong> distributi<strong>on</strong> of the levy by governments<br />
• retailers keeping records that are able to be reported to governments<br />
• penalties for n<strong>on</strong>-payment or n<strong>on</strong>-compliance, <strong>and</strong> guidelines for addressing issues<br />
involving under-payment<br />
• appeal rights for retailers <strong>and</strong> management of complaints against retailers<br />
• enforcement by authorised officers.<br />
This opti<strong>on</strong> differs from an advance disposal fee in that the levy does not have to be set to reflect<br />
the cost associated with clean-up or management of plastic bags. This means that the levy can be<br />
set at a level commensurate with a charge that would be most likely to deliver significant plastic<br />
bag-use reducti<strong>on</strong>. M<strong>on</strong>ies from the levy would be retained by governments. Retailers may have<br />
c<strong>on</strong>cerns regarding the administrati<strong>on</strong> costs of collecting <strong>and</strong> disbursing the levy to government<br />
but there is potential for a proporti<strong>on</strong> of the levy raised to be used to cover retailer costs associated<br />
with collecting the levy.<br />
This opti<strong>on</strong> may not completely eliminate plastic bags, although there would potentially be<br />
funding available for the implementati<strong>on</strong> of management opti<strong>on</strong>s, <strong>and</strong> c<strong>on</strong>sumer educati<strong>on</strong> <strong>and</strong><br />
awareness programmes about the impacts of plastic bags. This would require a policy decisi<strong>on</strong> by<br />
the government collecting the revenue to hypothecate revenue raised for envir<strong>on</strong>mental purposes.<br />
Without hypothecati<strong>on</strong>, a levy is likely to be unpopular.<br />
The quantum of the levy would need to be established <strong>and</strong> the price elasticity understood. The<br />
levy would need to be large enough to make the c<strong>on</strong>sumer think about whether they need the<br />
plastic bag or not – or whether alternatives such as reusable bags are more attractive. For example,<br />
if a reusable bag costs $1.00 <strong>and</strong>, <strong>on</strong> average, a reusable bag replaces four plastic bags, then the<br />
levy would need to be in the order of $0.25 per bag.<br />
C<strong>on</strong>sultati<strong>on</strong> Regulatory Impact Statement: Investigati<strong>on</strong> of opti<strong>on</strong>s to reduce the envir<strong>on</strong>mental impact of plastic bags January 2007 69