National container deposit scheme claimed to cost $8bn

The Daily Telegraph claims to have obtained a secret government report, written in March this year, which contains figures for a proposed national container deposit scheme (CDS). Such a scheme could cost consumers $8 billion a year - up from the $1.4 billion originally estimated.

The Council of Australian Governments (COAG) report apparently finds that the scheme would pass the cost of recycling on to consumers through higher prices - up to 20c extra for every drink bottle, can and container they buy. They would then have to store the empty containers in their home before travelling to a handful of recycling centres to recoup their costs.

The CDS is currently being considered by state governments, in particular NSW and Victoria. The chief executive of the Australian Food and Grocery Council (AFGC), Gary Dawson, has called on NSW Premier Mike Baird to reject the scheme based on its high cost to consumers and poor economics.

“A CDS has already been rejected by Queensland as economically unsound, while the Northern Territory scheme continues to be a wholesale failure,” Dawson said.

“An industry-backed solution, which COAG has recommended, would deliver the same benefits at a fraction of the cost.”

Dawson’s solution is the National Recycling Action Plan, which “involves the expansion of Australia’s existing, and successful, yellow-top bin network from homes into Australian major public spaces”. This would drive up overall recycling rates, he said, and “would not cost the taxpayer a cent”.

“The beverage, food and retail industries are prepared to spend $285 million over the next 10 years improving recycling and reducing litter, including the installation and rollout of up to 166,000 recycling bins in shopping centres, parks, airports and beaches, where they are most needed,” he said.

The CEO of the National Packaging Covenant Industry Association (NPCIA), Stan Moore, has meanwhile said the report confirms the Australian Packaging Covenant is the best regulatory option for managing packaging waste. The covenant delivers effective product stewardship by minimising resource use, increasing recycling and reducing litter.

“The report findings vindicate the 2010 decision by the then Australian Environmental Ministers to support the co-regulatory Australian Packaging Covenant as the appropriate regulatory approach,” Moore said.

“Ministers should rule out introducing new regulations and commence discussions with industry under the existing Australian Packaging Covenant framework. This is an opportunity for governments to remove the burden of uncertainty and let industry get on with delivering effective product stewardship of packaging.

“Industry is very supportive of the covenant approach and is ready to commence discussions with governments on the future of packaging regulation.”