Government clueless on size of present stock

The government does not know how many plastic bags retailers still have in their stores because the 2005 eco-tax law did not provide "enough control" on imports, a Resources Ministry spokesman has admitted.

Despite not having this information and with just a "rough estimate" in hand, the ministry gave retailers until March 1 to get rid of their stock - a deadline which, the Chamber of Small and Medium Businesses - GRTU says, is unrealistic.

Retailers are worried that they will not be able to get rid of the thousands of plastic bags they have in stock. To make their orders viable, most buy in consignments of between 10,000 and 20,000 bags and still have thousands left in stock.

In fact, even though many have paid the eco-tax on the bags, they cannot be used after March 1 because under the new regime each bag will have to have the producer's details, eco contribution number and batch number printed on both sides.

GRTU director general Vince Farrugia said the March 1 date did not give retailers enough time to get rid of their stock of bags. Earlier, the GRTU had been in favour of the date but Mr Farrugia said its consent was based on figures provided by the government, which he later found out were "incorrect".

"I don't think retailers have enough time, but I don't agree that we should abolish the whole project because of this logistical problem," he said.

"The statistics on which the government chose the date were incorrect. We were never asked how many plastic bags were on the market. We are discussing to find a solution. Postponing the March 1 date would not be the end of the world," he added.

On this point, the Resources Ministry had said it could allow some retailers to keep distributing their old bags beyond March 1 after evaluating matters "on a case- by-case basis" but would not discuss a postponement across the board.

"The government acknowledges that, with the present system, it can never have an exact figure of the current stock but it can have a rough estimate. It is envisaged that this new system, once implemented, will curb abuse and lead to an effective and enforceable measure," the spokesman said.

Unlike the 2005 tax, which failed miserably, the new system does not discriminate between conventional bags and those produced with degradable and biodegradable material.

But just days after announcing the new tax, the government admitted that it may waive the tax on eco-friendly biodegradables.

The retailers' representative is against this. "We don't agree because, if bags are cheap, retailers will be expected to continue distributing them for free and this is what we don't want," Mr Farrugia said, admitting that part of the benefit for shops was that they would drop the cost of giving away free bags.

In fact, he said the GRTU was four-square behind the government's intention to eradicate plastic bags not just because of the environmental aspect but also because this would reduce unnecessary costs for retailers.

The solution to the problem of excess plastic bags in stock, he said, was "round the corner", suggesting that retailers should be compensated for the eco-tax they had already paid on the plastic bags bought before the budget.

mxuereb@timesofmalta.com