No levy on plastic bags

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The Federal Government hopes to phase out plastic bags by the end of the year but will not introduce a levy to deter usage (AAP)

The Federal Government hopes to phase out plastic bags by the end of the year but will not introduce a levy to deter usage (AAP)

Australia will not adopt a national levy on plastic bags after the nation's environment ministers failed to reach agreement on the proposal today.

Australia will not adopt a national levy on plastic bags after the nation's environment ministers failed to reach agreement on the proposal today.

Federal Environment Minister Peter Garrett said there would be no mandated levy, but state governments would accelerate their work with industry to reduce plastic bag usage.

Mr Garrett said ministers believed it would be wrong to impose an extra cost on struggling householders who were already battling interest rates and other rises.

"What we've decided today is that there will not be a national mandated charge on plastic bags in checkouts, but we do want to see increased action to reduce plastic bag use in the community," Mr Garrett said.

"We've identified the need for an urgent working group to be established between government and industry to look at making sure that retailers are exploring all the options that they have in front of them to increase the use of the green recycle bags and to lessen the use of plastic bags."

Mr Garrett met with state and territory environment ministers in Melbourne today.