This Memorandum refers to the Single Use Plastic Bags Bill as introduced in the Northern Ireland Assembly on 6 December 2010 (Bill 8/10)

SINGLE USE PLASTIC BAGS BILL

Explanatory and financial memorandum

INTRODUCTION

1. This Explanatory and Financial Memorandum has been prepared on behalf of Mr Daithi McKay (the Member in charge of the Bill) to assist the reader in understanding the Bill and to help inform debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.

2. The Memorandum needs to be read in conjunction with the Bill. It is not, and is not meant to be, a comprehensive description of the Bill.

BACKGROUND AND POLICY OBJECTIVES

3. The Bill will introduce a levy on the supply of single use plastic bags by retail outlets. The levy is expected to encourage people not to use such bags, thereby reducing the amount of damage they cause to the environment. The number of plastic bags in circulation in Northern Ireland is estimated to range between 338 million to 390 million.

OPTIONS CONSIDERED

4. Mr McKay has introduced the Bill despite there being provision in the Climate Change Act 2008 enabling the Northern Ireland Executive to make regulations to charge for the use of such bags because of the Executive’s failure so to do. The Bill’s provisions are, however, somewhat different from the arrangements set out in that Act. The proposed Central Environmental Fund is, for example, a novel feature of the scheme envisaged in the Bill.

CONSULTATION

5. Mr McKay announced his intention to bring forward legislation in a consultation exercise in April this year, having raised the matter with the Minister of the Environment on a number of occasions.

6. The consultation exercise sought a wide range of views from organisations and stakeholders including the Councils, the Northern Ireland departments, the General Consumer Council of Northern Ireland and environmental organisations. Around 25 written responses were received, most of which were very supportive of the proposal, although there were differing views on a number of issues including what the proceeds of the levy should go towards and the cost to retailers.

OVERVIEW

7. The Bill has 12 clauses and two schedules.

COMMENTARY ON CLAUSE

Clause 1: Levy on single use plastic bags

Clause 1 introduces the levy on plastic bags. A supplier of goods to a customer in a retail outlet must charge the customer the levy if the goods are supplied in a plastic bag. It is intended that regulations will specify that only plastic bags which are intended to be used on a single occasion will attract the levy. Exemptions may also be specified in regulations. The levy is set at 15 pence – the Department of the Environment must periodically consider whether the amount should be revised.

Clause 2: Central Environmental Fund

Clause 2 provides for the establishment of the Central Environmental Fund into which all levy receipts will be paid.

Clause 3: Suppliers’ duties

Clause 3 imposes a comprehensive set of administrative duties on suppliers of single use plastic bags, including an obligation to pay the levy to the Department of the Environment.

Clause 4: Functions of district councils

Clause 4 places the duty to enforce the provisions of the Act on district councils. They may in particular bring civil proceedings against suppliers for the recovery of outstanding sums in addition to any criminal proceedings which may be brought against them.

Clause 5: Offence of not charging levy

Clause 5 makes it an offence for a supplier of single use plastic bags to fail either to charge the levy or to comply with the administrative obligations on them. Suppliers guilty of either offence will be liable on summary conviction to a fine which cannot be less than level 2 on the standard scale (£500) 

Clause 6: Offence of obstructing authorised officers

Clause 6 makes it an offence to obstruct an authorised officer in carrying out any investigation for the purposes of the Act.

Clause 7: Offences by bodies corporate and partnerships

Most suppliers will be bodies corporate, and clause 7 ensures that all such bodies, whatever their internal arrangements, will be liable in respect of an offence.

Clause 8: Civil recovery

Clause 8 puts in place a mechanism to enable a court to determine the likely number of singe use plastic bags which a retailer has supplied to customers so that it can determine the amount a supplier who has failed to impose the levy ought to pay into the Central Environmental Fund.

Clause 9: Regulations and orders

Clause 9 makes provision for the making of regulations and the order under the Bill. 

Clause 10: Interpretation

Clause 10 defines a number of expressions which appear in the Act.

Clause 11: Commencement

Clause 11 makes provision for the time when different provisions in the Act shall come into operation.

SCHEDULE 1 – APPLICATION OF CENTRAL ENVIRONMENTAL FUND MONEYS

This Schedule, which is introduced in clause 2, sets out the purposes for which levy receipts paid into the Central Environmental Fund may be used.

SCHEDULE 2 – POWERS OF AUTHORISED OFFICERS

Schedule 2, which is introduced by clause 4(6), gives authorised officers (i.e. officers appointed by a district council) a range of powers in order to enable them to enforce the powers of the Act. These powers, which include the ability to secure a right of entry, are subject to a number of safeguards.

FINANCIAL EFFECTS OF THE BILL

8. Start-up costs will be incurred by the Department of the Environment, but these will be recovered from the levy receipts. District councils’ expenses will similarly be reimbursed by the Department from Central Environmental Fund moneys.

EQUALITY AND HUMAN RIGHTS IMPLICATIONS

9. There are no equality or human rights issues arising from these proposals.

LEGISLATIVE COMPETENCE

10. The Member in charge of the Bill, Mr Daithi McKay, has made the following statement under Standing Order 30:

“In my opinion the Single Use Plastic Bags Bill would be within the legislative competence of the Northern Ireland Assembly.”

SECTION 63 RECOMMENDATION

21. This Bill seeks to impose a tax and therefore, as required under section 63 of the Northern Ireland Act 1998, requires a recommendation made by the Minister of Finance and Personnel before it can be passed.