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Container deposit scheme ‘could cost $8bn a year’

The City of Sydney is trialling a handful of reverse vending machines - exchanging empty bottles and cans for a chance to win prizes

The City of Sydney is trialling a handful of reverse vending machines – exchanging empty bottles and cans for a chance to win prizes

A secret Australian government report says the proposed national container deposit scheme could potentially cost consumers $8bn a year, according to The Daily Telegraph.

The leaked Decision Regulatory Impact Statement, dated March 2014, follows a Council of Australian Government (COAG) discussion amongst federal and state environment ministers about the different options for dealing with litter and boosting recycling rates.

The ministers made no decision at their last meeting, but opted for more time to consider the programmes and stakeholder feedback.

The Telegraph says the report claims that all ten options under consideration would pass the cost of recycling on to consumers through higher prices, with costs ranging from $88m to $8bn.

The report, it says, recommends against high-cost container deposit scheme options, which would offer a refundable 10cent deposit on beverage containers that consumers recoup at recycling depots.

Christening new bins at Midland Gate shopping centre - Chris Jeffreys, Packaging Stewardship Forum; Stan Moore; Jacqueline McKenzie, Centre Manager; and Marcus Geisler, Chairman of the Waste Authority

Christening new bins at the Midland Gate shopping centre in WA – Chris Jeffreys, Packaging Stewardship Forum; Stan Moore; Jacqueline McKenzie, Centre Manager; and Marcus Geisler, Chairman of the Waste Authority

It does however back a cheaper $200m option suggested by industry, in which beverage companies install public recycling bins with a promise of no additional costs passed on to consumers.

The Australian Food and Grocery Council says that a CDS would force consumers to pay up to 20 cents extra for every drink bottle, can and container they buy, and consumers would then have to store the empty containers in their home before travelling to a handful of recycling centres to get their money back.

The Council, instead, is plugging its National Recycling Action Plan, which it says would make it easier for Australians to recycle litter at their work, at home and in public places including parks, breaches, sporting grounds and shopping centres.

However, the Australian Packaging Covenant says the report confirms that its existing self-regulation programme remains the best and cheapest regulatory option for managing packaging waste.

Stan Moore, CEO of the National Packaging Covenant Industry Association, which now has more than 900 industry signatories, says the Covenant “delivers effective product stewardship of packaging for the least cost and burden on consumers.”

He says the Covenant will expire in a little more than 12 months – meaning ministers should come to a decision or risk undermining the current measures in place.

He says, “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 supportive of the Covenant approach and is ready to commence discussions with governments on the future of packaging regulation.”

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