Council approves changes to Vancouver’s single-use cup fee

While some city councillors pushed to do away with Vancouver’s $0.25 single-use cup fee entirely, the majority voted in favour of making some tweaks to the current bylaw.

On Wednesday, city staff presented the results of a review of the mandatory fee, prompted by concerns over the impact on customers and businesses.

“The recommendations focus on finding ways to support people experiencing poverty or living with low incomes, compelling businesses to accept reusable cups, and motivating businesses to invest in reusable alternatives,” the report reads.

The recommended changes were approved after a motion to eliminate the fee was defeated 6 – 5.

Criticism of the fee was, in part, prompted after people who had received a meal voucher from a warming center were asked to pay for a cup and a bag.

The report to council noted one aspect under review was “potential unintended impacts to residents disproportionately affected by income inequality.” The fee will now be waived for those who are getting free drinks using vouchers, gift cards, or rewards programs. The fee also will not apply to those accessing free water. Staff is recommending this change come into effect March 29.

In addition to the fee being inconvenient and sometimes impossible to pay for some people, critics of the bylaw also said purchasing and storing reusable cups can be a challenge. Another change approved  is for the city to “support the development and expansion of low barrier cup-share programs that can be accessed by people experiencing poverty or living with low incomes, and raise awareness on how to access low barrier cup-share programs.”

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Another issue raised was businesses charging the fees without offering reusable alternatives, as well as businesses refusing to accept reusable cups. Council has agreed to require all businesses to accept reusable cups by July.  Further, staff will report back to council next year, looking into “options for requiring businesses to provide reusable cups for drinks ordered to stay and to participate in a reusable cup-share program for to-go drinks, including recommendations for timing.”

The fee will remain in effect while these changes are being implemented.

The report also noted some of the issues that have arisen since the fee was implemented on Jan. 1, 2022. It found large, national and multi-national chains “are currently lagging behind small businesses and local chains in giving customers options to avoid the $0.25 fee.”

Although the fees have been imposed via a city bylaw, the fees collected go directly to the businesses. “Mistrust” of how businesses are using the revenue from the fees waS another issue raised.

“There is a lack of transparency on how businesses are using the cup fee,” the report says.

On a positive note, the report says conflicts over the fee have been rare.