Beverage Container Levy under review
A national beverage deposit scheme is currently being reviewed by a Senate committee. The Greens and Family First are supporting the plan and believe that it would be cost neutral, potentially reduce greenhouse gas emission by 1.4 million tonnes per year and may save Council ratepayers up to $60 million dollars a year.
If passed through the Federal Parliament, the Container Deposit legislation will see a 10 cent levy on every beverage container sold across the country. This levy can then be recovered by the consumers when they recycle the containers. This is similar to the scheme already in operation in South Australia.
The Australian Food and Grocery Council (AFGC), one of the peak bodies representing the Australian food industry, spoke against the plan. It believes that will cost up to $500 million to taxpayers every year and will also increase costs to business and consumers.
AFGC Chief Executive, Kate Carnell, said in February 2009 that “it was disappointing that high profile members of the community were still calling for ‘costly, outdated 1970s solutions to 2009 challenges”. She was responding to calls by Ian Kiernan, the Clean Up Australia Chairman, for governments to introduce this legislation.
“It’s not just the deposit that would add costs there’s also the handling fees. Based on a 10 cent deposit and a four cent handling fee, the cost of a carton of beer would increase by $4 to $5″ said Kate Carnell. “Container deposit systems just don’t stack up in terms of efficiency and effectiveness. Victoria, which doesn’t have container deposit, recycles 20 kg more packaging per capita than South Australia, which does have container deposit.”
The AFGC believe that the focus should be on recycling and better waste management. Kate Carnell said “The AFGC through the Packaging Stewardship Forum is already working on improving recycling from workplaces, the hospitality sector and shopping centres. With the National Packaging Covenant (NPC), we have a range of projects are underway to recycle an extra 60,000 tonnes of packaging each year and that includes beverage containers.”
The National Packaging Covenant has been operating for the past 10 years. It is a cooperative agreement between industry, Government and Non Government Organisations to manage waste from packaging. Based on current focuses, the Covenant has the capacity to divert an additional 500,000 tonnes of packaging from landfill each year.
The Federal Government has not advised of a position on the plan, preferring to set-up the inquiry to weigh up the various arguments. We, as consumers and, members of the food industry will simply need to wait for the outcome. If you wish to contribute to the debate contact the AFGC on www.afgc.org.au