The Australian Competition and Consumer Commission today released a decision proposing to grant authorisation* to the Australian National Retailers Association to conduct a four-week trial of a 10c charge for lightweight plastic shopping bags.
The trial is proposed to take place at Coles Supermarkets, Woolworths Supermarkets and IGA retailers in Narre Warren, Wangaratta and Warrnambool in Victoria.
The pilot program, conceived in consultation with the Victorian Government, is proposed to commence in August 2008. The ACCC is also proposing to allow the parties to the pilot program to disseminate information and data based on the results of the program.
The ACCC has granted interim authorisation for the pilot program, to take effect on 1 August 2008, subject to any significant concerns that may be raised before that date.
ANRA has put forward a pilot program that seeks to quantify the consumer response to introducing a charge on plastic bags supplied by supermarkets at three locations in Victoria. It is hoped that this data will assist retailers and government to form a consensus on how best to reduce plastic bag use.
"The ACCC considers that the proposed trial has the potential to result in benefits to the public, by providing some evidence of the extent to which the charge will reduce bag usage and by assisting governments to determine the most effective way to achieve their goal of reducing plastic bag consumption," ACCC Chairman, Mr Graeme Samuel, said today.
Any profits made by retailers charging for plastic bags during the trial will be donated to environmental projects agreed to by the Victorian Government and ANRA.
"The ACCC notes that consumers in Narre Warren, Wangaratta and Warrnambool can avoid the charge on plastic bags by bringing their own carry bags."
Given that the application only relates to a short term trial, the ACCC has not made an assessment of the benefits and detriments of imposing a permanent charge for lightweight plastic shopping bags.
The ACCC is seeking submissions from interested parties in relation to its draft determination by Monday 28 July 2008. The ACCC's draft determination will be available on the ACCC website.
*Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.
