Green’ drink tax scheme slammed by COAG

17th July 2014
Convnience World

Australian consumers will be forced to pay as much as $8 billion per year under the container recycling scheme that is being considered by state governments.
The $8 billion price tag for a national container deposit scheme (CDS) would cost consumers more at the grocery check-out and is a duplication of the existing kerbside recycling system, according to AFGC Chief Executive Gary Dawson.
Mr Dawson has called on NSW Premier Mike Baird to reject a national CDS based on its high cost to consumers and poor economics, while citing the ongoing failure of the Northern Territory system, which has been rejected by Queensland as an unnecessary cost to consumers.
“An industry backed solution, which COAG has recommended, would deliver the same benefits at a fraction of the cost,” Mr Dawson said.
A CDS would force consumers to pay up to 20¢ extra for each drink bottle, can and container purchased. The empty containers would then need to be stored before travelling to a recycling centre to receive a refund.
Mr Dawson said the NSW Government should release the cost benefit analysis that shows the cost of a CDS has blown out from an estimated $1.4 billion to $8 billion – a 570 per cent increase that would be solely met by industry and taxpayers.
“In contrast, industry is proposing an alternative National Recycling Action Plan that would make it easier for Australians to recycle litter at their work, at home and in public places including parks, beaches, sporting grounds and shopping centres,” he said.
“Importantly the National Recycling Action Plan would not cost the taxpayer a cent. It involves the expansion of Australia’s existing, and successful, yellow-top bin network from homes into major public spaces and, in doing so, drive up the country’s overall recycling rates.
“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.”

Posted in

Subscribe to our free mailing list and always be the first to receive the latest news and updates.