Warehouse donates plastic-bag profits

Community groups will get the profits from a new scheme to sell plastic bags at The Warehouse.

The red sheds began charging shoppers 10c a bag on Monday as part of a plan to cut plastic waste.

Yesterday, a spokeswoman said stores would use the extra money to fund community groups in their areas.

The revenue from their plastic bag sales, less the cost of the bags, would be given back to local stores to donate, she said.

A four-store pilot between November 2008 and January this year raised $11,000 for communities and cut plastic bag use by at least 70 per cent, said the spokeswoman.

The money was divided between the South Taranaki Community Safe House in Hawera, Whakaupoko Landcare in Pukekohe, the RSPCA Animal Shelter in Rotorua and the Central Otago Hospice in Alexandra.

The other major retail chain to announce a charge, Foodstuffs, has not said where the money from its 5c-a-bag levy will go.

Shoppers at New World, Four Square and Pak'nSave supermarkets, will pay for plastic bags from August 3.

Managing director Tony Carter said yesterday the company would make a "significant contribution" to an environmental initiative.

Foodstuffs has said a majority of the profits from selling plastic bags will go to environmental causes, but has not said how much.

"We are working through the details and will make an announcement closer to the launch date of August 3," said Mr Carter.

The aim of the charge was to drastically reduce plastic bag use. "It is not driven by financial reasons."

North Island Pak'nSave shoppers have been paying for plastic bags for about 20 years.