Labor had introduced the bill, but the Coalition government said a ban on plastic bags was too simple an approach and committed to developing a more comprehensive plan.

"We all recognise the need to reduce our environmental footprint and the need to reduce waste," Mr Clancy said.

"I am very proud of what local government has done in my electorate to work with the community on programs such as Halve Waste.

"Local councils have made significant inroads in reducing waste. This debate comes down to the whole notion of whether it is as simple as just banning plastic bags."

He criticised Coles for getting rid of single-use plastic bags, but continuing to give away small plastic toys.

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"We need to look at reducing the amount of unnecessary packaging because the use of plastics in packaging has grown over recent years," he said.

"One simple thing would be a great boost to the success of Return and Earn, particularly for my community in Albury and on the border - I want to see the Victorian Labor government sign up and implement a container deposit scheme.

"It is the only jurisdiction that is not involved in a container deposit scheme."

Labor MP Kate Washington said even MPs who argied against the bill knew that plastic bags should not be entering the environment.

"Communities will be appalled because communities right across this state want to catch up and join with the rest of Australia in banning single-use plastic bags," she said.