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LCQ2: Effectiveness of the Environmental Levy Scheme on Plastic Shopping Bags
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     Following is a question by the Hon Jeffery Lam Kin-fung and a written reply by the Secretary for the Environment, Mr Edward Yau, in the Legislative Council today (October 28):

Question:

     The Environmental Levy Scheme on Plastic Shopping Bags ("Levy Scheme") has been implemented since July 7 this year, and a levy of 50 cents on each plastic shopping bag ("PSB") distributed by retailers is to be introduced by phases.  Chain or large supermarkets, convenience stores as well as personal health and beauty stores are covered in the first phase.  In this connection, will the Government inform this Council:

(a) of the reduction in the quantity of discarded PSB since the implementation of the Levy Scheme when compared to those of the same period last year, and the total amount of levy received by the Government during the period;

(b) whether it has, after the implementation of the Levy Scheme, assessed if there are changes in the respective quantities of discarded garbage bags, paper bags, as well as food bags from supermarkets when compared to those of the same period last year; whether there is an increase in the quantity of goods pre-packaged in plastic bags, and whether this will offset the reduction in the quantity of PSB;

(c) whether it has found out, after the implementation of the Levy Scheme, if the business turnovers of registered retailers have thus been reduced; and

(d) of the timetable for implementing the next phase of the Levy Scheme?

Reply:

Mr President,

(a) The Environmental Levy Scheme on Plastic Shopping Bags ("Levy Scheme") has been implemented since July 7, 2009.  According to the initial feedback from some green groups and the retail trade, the number of plastic shopping bags ("PSBs") distributed to customers by registered retailers has been reduced significantly.  Some sources have indicated that the reduction is as much as 80% to 90%.  We have already started preparation for a survey which would collect information on the disposal of PSBs after the implementation of the Levy Scheme.  

     As required under the Levy Scheme, registered retailers shall submit to the Government quarterly returns setting out the number of PSBs distributed to customers in the non-exempted areas in all of their registered retail outlets and the amount of levy collected for such PSBs.  The first quarterly returns cover the period from July 7, 2009 and September 30, 2009, and have to be submitted to the Government on or before October 30, 2009.  As at  October 26, 2009, a total of 21 registered retailers (or about 51%) have submitted their quarterly returns.  They have collected levies of about $3.2 million.

(b) As we are conducting a landfill survey, we are unable to advise on any changes in the quantities of discarded garbage bags, paper bags as compared to those before the implementation of the Levy Scheme.  Due to technical reasons, the survey does not collect specific statistics on the quantities of food bags from supermarkets.  In any event, the Levy Scheme has been in general operating smoothly since its implementation.  The Government is not aware of an apparent increase in the quantity of goods pre-packaged in plastic bags.

(c) The Environmental Levy Scheme on Plastic Shopping Bags aims at addressing the indiscriminate use of PSBs in Hong Kong through economic incentives.  According to our observation, since the commencement of the Levy Scheme, majority of the public have now brought along their shopping bags when they shop at registered retailers.  On the one hand, this is because through publicity and education over the years, members of the public have become supportive of environmental protection and are willing to take actions for that purpose.  On the other hand, it is relevant to the support of the retail trade with which the preparatory and implementation work has been properly done such that the Levy Scheme could be operated smoothly.  Business turnovers are primarily affected by the overall economic performance, consumer sentiments in the community and other relevant factors.  At this stage, there is no evidence suggesting any material negative impact by the Levy Scheme on the business turnovers of the registered retailers.  

(d) We believe that the Levy Scheme would reduce the indiscriminate use of PSBs in Hong Kong.  We are collecting data for the purpose of a comprehensive review of the effectiveness of the Levy Scheme and as reference when considering the way forward of the scheme.

Ends/Wednesday, October 28, 2009
Issued at HKT 11:10

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