'Don't impose new stealth tax' Shopkeepers in carrier bag levy plea.

Byline: DAVID JONES

A BODY representing many shopkeepers in North Wales has branded a proposed compulsory charge on plastic bags as a "stealth tax".

The Federation of Small Businesses is angry that the Welsh Assembly Government is pressing ahead with a scheme to charge for "single-use" carrier bags at a time when so many small retailers have their backs to the wall.

Michael Learmond, North Wales regional organiser for the FSB, said politicians did not seem to care that they were imposing yet another levy on small shopkeepers who, by and large, were struggling to make a living in very difficult conditions.

"It is simply a stealth tax and another level of red tape and bureaucracy for these businesses to deal with," said Mr Learmond.

"Retailers should be encouraged to move towards biodegradable packaging and carrier bags rather than finding themselves hit with a punitive charge."

He added: "As I understand it, the new charge will cover all single use bags including paper bags, which makes a mockery of the Assembly Government's environmental argument, as paper bags degenerate within a matter of days.

"It is a mistake to imagine that small business are not environmentally friendly. They have long been at the forefront of cutting costs and waste in order to maximise their profits."

Last week the Daily Post reported that seven leading supermarkets in Wales had voluntarily slashed their use of plastic shopping bags by half over a period of three years.

British Retail Consortium director general Stephen Robertson said: "These figures send a clear message to the Welsh Assembly Government which seems determined to use the force of law to introduce compulsory bag charges."

The BRC says it shares the Welsh Assembly Government's aim to reduce bag usage in Wales, but estimates that the move to charge for bags will costs consumers between pounds 22m and pounds 36m a year.

The WAG move - which would effectively ban free plastic bags in shops - follows an investigation by AMs which recommended a levy and which could raise millions of pounds to be spent on environmental projects.

A 10p levy per bag would raise pounds 6.48m a year to invest in green projects.

A WAG consultation document suggests that between five pence and 15 p a bag would be appropriate and would cover all types of single use bags including plastic and paper bags.

It added that the move would cut litter and help tackle climate change.

Local authority trading standards officials would enforce the new regulations, and retailers would have to keep a tally of, among other things, how many single-use carrier bags had been sold and how much was raised.

Earlier this year environment minister Jane Davidson said: "Customers have come to expect free plastic bags at checkouts, but the tide appears to be turning as shoppers look for more environmentally-friendly options."

She said she was determined to impose a new regulation under the Climate Change Act to achieve quicker progress.

The Act allows the Assembly Government to require retailers to impose a charge for carrier bags but ministers will not be able to dictate where the cash is then used.

LLANDUDNO shop owner Susan Morris said she was "horrified" when she first heard of the plan to charge for single-use bags.

She said the move could only damage small businesses and make it harder for them to compete against bigger supermarket rivals.

"It is not just carrier bags that will be covered, it is all packaging, even small paper bags. I understand that the charge will be around 15 pence per bag, plus VAT," said Mrs Morris, who runs the Merrymoon gift shop in Upper Mostyn Street.

"There is no way that I could absorb that cost myself - inevitably it would have to be passed on to the customers. And that will lose us trade."

She added: "It is very unfair on small businesses. I can see large businesses like supermarkets being able to work with the new charge, but its complexity will create endless problems for small shopkeepers.

"I can't see how the new regulation can be easily implemented.

"We have already cut back on packaging, as much as we can, because we have to pay to get rid of waste. And all our packaging is biodegradable, even our bubble wrap.

"The Welsh Assembly Government is supposed to be working for Wales, but all it is doing is making it much harder for business to fight against the recession."

CAPTION(S):

Susan Morris, of Llandudno gift shop Merrymoon, believes charging for bags would damage business as shopkeepers could not absorb the cost