Yep same in New Zealand, as much as I hate it we now buy dedicated bin bags for our kitchen bin and others as it works the best for our flat. In the past this was never an issue.
However, urban plastic pollution has definitely decreased. We do often now have an excess of paper bags in our house as people tend to forget their reusable bags and we don't have as many uses for the paper ones. At least they can be recycled.
The problem is the carbon footprint. Those paper bags have the carbon footprint of 5-10 plastic bags. Re-usable bags, depending on the material, are 200-1000 plastic bags worth of carbon.
However, urban plastic pollution has definitely decreased. We do often now have an excess of paper bags in our house as people tend to forget their reusable bags and we don't have as many uses for the paper ones. At least they can be recycled.