Plastic Bags - COAG Standing Council on Environment and Water

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Implications
In summary, retailers would be subject to increased costs for administration, in-store education
and promotion, though this would be reduced over time. Government would have increased
administration costs but reduced litter costs. Household income falls (relative to the ‘no further
action’ option), but there is an environmental benefit from reduction in litter.
Under this option, the consumer decides the worth of the convenience of having plastic bags
available and makes a choice as to whether to pay the per-bag levy or use an alternative. There
may be some consumers who choose to absorb the cost of the levy in order to retain the
convenience, while other consumers will avoid plastic bag use.
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Option L: Elimination of plastic bags from 2009 (ACG scenario 1)
Description and assumptions
This option would come into effect from 1 January 2009. It would provide a regulatory framework
for the elimination of plastic bags.
The ban would not apply to the plastic bags in circulation prior to its introduction. It would only
apply when current plastic bag stocks held by retailers required replacement. The ban would also
not apply to the customer wishing to re-use the plastic bags that they had received from the
retailer prior to the introduction of the ban.
In terms of enforcement, a ban applied at the import and manufacturing stage would be less
complex to administer than a ban at the retail end, as there are a smaller number of importers and
manufacturers. However, it would also mean greater involvement by Australian Customs officials
in enforcing the ban on products entering the country. It could be impractical to require that all
shipping containers be searched for plastic bags. It could also be impractical to enforce at the retail
level in terms of capturing those retailers not complying with the ban.
For simplicity, any exemptions would need to be kept to a minimum and would relate to those
areas where plastic bags are necessary to ensure the integrity of the product purchased (for
example, for food safety or hygiene reasons).
The plastic bag manufacturers’ industry association has signalled that some structural adjustment
or support from government may be required.
Determination would be required of how, and by whom, the ban would be enforced and likely
compliance costs associated with this option. It would also be necessary to determine when the
ban would take effect. For the purposes of modelling, the ban has been modelled as commencing
on 1 January 2009.
There may be a policy challenge in putting a product like plastic bags in the same status as illicit
drugs, hazardous chemicals and other banned goods.
Consultation Regulatory Impact Statement: Investigation of options to reduce the environmental impact of plastic bags January 2007 72