Consumer Council Submission on Extension of the Environmental Levy
Scheme on Plastic Shopping Bags (July 2011)
1. The Consumer Council ("CC") is
pleased to submit views in response to the Public Consultation on
Extension of the Environmental Levy Scheme on Plastic Shopping
Bags.
2. CC is pleased to learn from the
consultation document that the first phase of the Levy Scheme has
been effective and resulted in a reduction of as high as 90% in the
number of plastic shopping bags (PSBs) distributed by the
registered retailers (covering about 3,100 retail outlets under
predominantly chain operators). CC supports the polluters pay
principle and has the following to say about the Government
proposal to extend the Levy Scheme.
3. CC believes that the registered
retailers represent the major source of distribution of PSBs
because of their wide territorial coverage, large scale of
operation and high business volume. If the Levy Scheme is to be
extended to cover all retailers regardless of their business scale,
any adverse effect to small and medium enterprises in terms of
increase in operational and administrative cost could be offset if
the proposed "retention by retailers" approach is adopted and
remittance of the charge collected is dispensed with.
4. However, CC would caution against the
possibility of retailers resorting to distribution of shopping bags
of other materials e.g. paper to get around the requirement to
collect the charge. That is not conducive to environmental
preservation because of the impact on other resources such as wood
and trees. On the other hand, it may be necessary to guard against
retailers and consumers resorting to means such as discounts and
rebates to defeat the purpose and effect of producers'
responsibility.
5. Therefore, in CC's view, irrespective
of the coverage of the Levy Scheme and the approach to be adopted,
the Government would have to demonstrate that the purpose of
environmental preservation is thereby achieved. There is need for
monitoring or surveillance of the distribution and use of plastic
bags to ensure that there is no abuse. Moreover, it may be
necessary to require some form of reporting by retailers so that
the effect of the Levy Scheme in terms of amount of money charged
or reduction in the number of PSBs can be tracked. The public can
also be encouraged to report abuse whether in the form of bypassing
charge for distribution of PSBs or distributing substitutes
instead.
6. CC considers that there is health
ground to support having non-prepackaged food separately contained
and the proposal to exempt PSBs that are directly and solely used
for food hygiene purposes is reasonable. However, there may be
misconceptions and confusions about the PSBs that will fit the
criteria. There is a need for the exemption to be clearly defined.
Consultation of the food industries will shed light on whether
there are other circumstances where the use of PSBs is also
justifiable on the grounds of food hygiene so that exemption should
also be given.
7. There is another proposal to include
"flat-top" bags into the definition of PSBs to be regulated. From
CC's observation, "flat-top" bags are normally thin bags used to
contain fresh food or small items. In chained stores, they are
often placed in close proximity to fresh food items and consumers
are free to take them for containing small volume purchases.
"Flat-top" bags serve practical functions of hygiene when used to
contain fresh food, but consumers may abuse use of these bags
because they are free to take. If PSBs that are directly and solely
used for food hygiene purposes are exempted as proposed, the
distinction between bags with handles and those without (i.e.
"flat-top") is no longer necessary as long as the food-containing
purpose is involved. For serving other purposes, it seems
appropriate to include ''flat-top" bags under regulation.
Alternatively, the size and purpose of "flat-top" bags may need to
be restricted to prevent abuse if exemption continues.
8. Education in environmental protection
needs to be strengthened and the public should be made aware of the
scope of the Levy Scheme and the long-term harm of disposal of
PSBs.
9. Financial penalties for
non-compliance need to be enforced so that complying retailers
would not be disadvantaged.
