Pick ‘n Pay CEO Sean Summers said on Thursday that, along with the retail industry, Pick ‘n Pay would have no alternative but to comply with the South Africa’s new legislation on plastic bags that comes into effect on 9 May that forces consumers to pay for their bags.
However, he said, the listed food and general merchandise retailer would be introducing its own “Green Bag” as an alternative to cut the overall cost for consumers.
In addition, the company would “stand firm” on the issue of the VAT charge on government-regulated plastic bags as this “constituted an unfair burden” on an already hard-pressed consumer.
The government will be implementing the new legislation, which requires manufacturers to produce thicker plastic bags that last longer, in order to promote repeat use of the bags and encourage recycling.
In terms of the legislation, government has now regulated the thickness of plastic bags, which have to be no thinner than 30 microns and for which consumers must now pay separately.
“While this is an improvement on the original demands from government, the legislation still carries an additional burden for consumers. The legislation takes effect on May 9, 2003.
“We fought the original proposals put forward by government on the basis that we believe that education, not legislation, would help achieve the same objective — an improvement to our environment,” Summers elaborated.
“Had we not taken our strong cost-related view to government, consumers would be paying over one rand a bag rather than the 40 cents (without VAT) government will now be mandating.
“While the new legislation is a compromise, we still believe it is an unnecessary cost to the consumer, when good, solid and co-operative communication and education would have served the same purpose.
“We are still determined to convince government to zero-rate the new bags, which at the moment will attract VAT. We do not believe this is a fair deal for consumers, given that they now in any event will have to pay for their bags.
“Pick ‘n Pay, like the other retailers, will be selling the new government-regulated plastic bags. However, in introducing an alternative for our consumers to government-regulated plastic bags, we have extensively researched consumer trends, environmentally-friendly alternatives and successes internationally.
“Based on our research, we will be introducing a new reusable “Green Bag” at our stores before the legislation takes effect. Given that the new legislation will now force consumers to pay for plastic shopping bags no matter where they shop, we believe that this reusable bag is a very good and cost- effective alternative for our customers.”
The new Green Bag is ergonomically designed and is made of a special environmentally-friendly fabric. All Pick ‘n Pay till points have been mechanically adjusted to accommodate the new bag, which will make the packing process up to 20% faster at the tills.
“From May 9, all consumers, irrespective of where they shop, will need to purchase their plastic bags. This charge for the three standard sizes of government-regulated bags (8-, 12-, and 24-litre) will be exactly the same at all retailers. The size and price of the bags will be indicated clearly on shoppers’ till slips,” said Summers.
An environmental levy which will be included in the price of plastic bags will go towards government-administered environmental projects and education.
“Customers at Pick ‘n Pay will thus have four choices as of May 9: they can
bring their own bags; they can pay for government-regulated plastic bags; they
can carry their own groceries without bags; or, more cost-effectively, they can
buy one of our reusable Green Bags.” – I-Net-Bridge