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Container deposit legislation not simple or cheap

Introducing Container Deposit Legislation (CDL) in Australia was not as simple or inexpensive as many people believe, according to a Senate enquiry report just released, which has been welcomed by the Australian Food and Grocery Council (AFGC).

The Senate report recommended that the private members Bill — Environment Protection — Beverage Container Deposit and Recovery Scheme – for Container Deposit Legislation (CDL) in Australia should “not be passed … at this time”.

The report said that while there was some support for CDL, debate around the bill, and the disagreement from various groups, including the Environment Protection and Heritage Council (EPHC) highlighted “how complex this area of policy making can be”.

AFGC Chief Executive Kate Carnell said the report highlighted that any benefits of CDL could not be easily quantified.

“The findings show that CDL is not as simple as it may seem and is a far more complex issue than many people believe,” Ms Carnell said.

“The Senate committee’s findings are a sensible outcome for Australian consumers, who would be forced to bear the costs of a CDL and be inconvenienced by no longer being able to place containers in their recycling bins for kerbside collection.”

Industry research has confirmed that CDL is a more expensive option compared with the highly successful industry-led kerbside recycling and packaging waste partnership programs — under the world-leading National Packaging Covenant co-regulatory arrangement — which are already underway in Australia.

Under the current recycling approach, Australia’s packaging recycling rates have risen from below 40 per cent to almost 60 per cent over the past five years.

The Covenant has to capacity to divert an additional 500,000 tonnes of packaging from landfill each year.

The Senate report highlighted that the annual costs to Government, industry and the broader community are estimated to be $492 million a year, which Ms Carnell said would result in consumers facing higher prices for bottled and canned beverages, including beer and softdrinks.

Ms Carnell urged Australia’s Environment Ministers to seriously consider the Senate report’s findings for their November meeting when they will determine the future direction of Australia’s packaging and recycling frameworks.

To read the Senate’s findings, visit www.aph.gov.au/Senate/committee/eca_ctte/environment_protect_09/ report/c02.htm#anc5

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