New World, Four Square to charge for plastic bags

Supermarket chain Foodstuffs is to introduce a 5c surcharge on plastic shopping bags.

New World and Four Square stores nationwide and Pak'n Save stores in the South Island will charge per plastic bag from August 3.

A nationwide campaign pushing for a levy on plastic supermarket bags was launched last month.

The 'Get Real' campaign wanted Foodstuffs and rival chain Progressive Enterprises to charge for plastic bags at their supermarket counters.

Both companies signed the Packaging Accord in 2004 which set a goal of reducing the number of bags used by a fifth (144 million bags) this year.

Foodstuffs have reduced plastic bag use by 19 percent since July 2007 with new packaging techniques and the sale of reusable shopping bags, managing director Tony Carter said.

"While we have made good progress ... we now need to take the next step in dramatically reducing the consumption of plastic bags," he said.

"We believe our customers understand the environmental reasons for introducing the charge and will respond favourably."

A trial by the Australian National Retailers Association found plastic bag consumption reduced by 80 percent when a charge was introduced, he said.

Environment Minister Nick Smith caused a stir when he said he was investigating the introduction of a charge on all supermarket plastic bags.

Money generated by the user-pays scheme would go back to the supermarkets, he said.

But Prime Minister John Key poured cold water on the proposal saying "I won't be supporting the introduction of a tax that is paid directly to supermarket chains".

The Green Party has praised the move by Foodstuffs saying the levy was a "welcome step forward".

Party co-leader Russel Norman said he hoped the charge would "inspire" the Government to take action.

"What we need now is for the Government to back up Foodstuffs' good initiative by introducing mandatory product stewardship for plastic bags," he said.

Last month bargain retailer The Warehouse announced it would introduce a levy of 10 cents per plastic bag from April 20.

- NZPA