Container deposit legislation in Australia

Container deposit legislation (CDL) also known as a Container Deposit Scheme (CDS) is a scheme that was first implemented in South Australia in 1977 and over the decades has spread to the Northern Territory in 2012, New South Wales in 2017, the Australian Capital Territory in June 2018 and Queensland in November 2018. Schemes in the remaining states are due to commence in Western Australia in June 2020, Tasmania in 2022 and Victoria in 2023.[1]

CDL/CDS status in Australian states and territories
  Scheme in effect (SA, NT, QLD, ACT and NSW)
  Planned scheme (WA - 2 June 2020, TAS - 2022, VIC - 2023)

A Newspoll survey found a majority of people in Australia support a deposit scheme,[2] and a national scheme has also been proposed many times over the years.[3] The recent NSW scheme was strongly opposed by the beverage industry and highlighted their influence.[4]

The value of deposits and the scope of their application have been influenced by the Australian federal constitution's guarantee of free trade between the states. The defining case in this issue was the attempt to introduce a differential between reusable and recyclable bottle deposits. The issue was taken to the High Court of Australia in the Castlemaine Tooheys Ltd v South Australia court case.[5] State based schemes need to be exempted from the Commonwealth Mutual Recognition Act which guarantees products can be sold in any jurisdiction without requiring any special labelling. This formed the basis of legal action against the Northern Territory's scheme until an exemption was granted. The value of a container deposit is 10 cents for an eligible container.

CDL by state

Summary
Jurisdiction Container deposit scheme introduced? Commencement date
South Australia Yes 1977
Northern Territory Yes 3 January 2012
New South Wales Yes 1 December 2017
Australian Capital Territory Yes 30 June 2018
Queensland Yes 1 November 2018
Western Australia Yes (not yet in effect) 2 June 2020
Tasmania No (proposed) Proposed from 2022
Victoria No (proposed) Proposed from 2023

Australian Capital Territory

The ACT government has always been supportive of container deposit legislation, but has never acted alone due to its relatively small size and being enclaved inside the much larger state of NSW. They have always said if NSW adopts a scheme they will follow suit.[6] The ACT Container Deposit Scheme legislation was passed into law on 9 November 2017 and a public consultation period was conducted ahead of the scheme's implementation in 2018.[7] The scheme began on 30 June 2018.

New South Wales
Reverse vending machine, December 2017.

In the 1960s and 1970s Sydney had a bottle return scheme whereby retailers returned bottles to the manufacturer for refunds. If the retailer supported it, members of the general public could return bottles to the point of sale for refunds.[8]

In the 2000s the New South Wales government indicated it wished to push ahead with a container deposit scheme as part of a raft of new policies aimed at protecting the environment and doing more to prevent litter and pollution entering the state's rivers, oceans, and parks.[9] The scheme has strong backing from the public, various politicians, NSW councils,[10] and various environmental groups such as Cleanup Australia, Boomerang Alliance, and Total Environment Centre.

In February 2015 it was revealed that the Baird government has been under a well planned, sustained attack from multiple beverage industry companies and their executives. They have organised the lobbying of various members of parliament in NSW and other jurisdictions (even at the federal level) to gain influence over Mike Baird and Minister for the Environment, Rob Stokes, in order to force them to abandon plans for a container deposit scheme in NSW. The beverage industry has even threatened to run scare campaign election advertising. The government said that all of this time and money spent on lobbying has ultimately failed to change their position and the scheme will go ahead and is currently being designed. They have also invited the beverage industry to get on board.[11]

The NSW government initially announced the start date of a container deposit/refund system to be July 2017, however, this was extended to December 2017 following requests from environment groups and industry bodies.[12]

On 8 May 2016, it was officially announced the NSW will be implementing a full 10c Container Deposit Scheme after looking at many options, including public submissions and industry alternatives. As it stands, a drink container from 150ml in size up to 3L will be covered as long as it has the appropriate NSW labelling. There will be some exclusions - such as wine bottles - as it is mainly targeting drink containers consumed away from home. Draft legislation will be brought forward and an implementation advisory group will be established to meet the 1 December 2017 start date. This will affect the ACT and also QLD which are currently examining options for a state-based scheme.[13]

On 29 July 2017, the NSW EPA announced the scheme coordinator would be a joint venture called Exchange for Change,[14] comprising 5 of Australian beverage companies: Asahi, Carlton & United Breweries, Coca-Cola Amatil, Coopers Brewery and Lion. However, there has been some criticism of this decision given some of these organisations have actively opposed CDL in the past.[15]

On 1 December 2017, the Container Deposit Scheme, named Return and Earn, officially started, as it pushed to reduce the volume of litter in NSW by 40% by 2020. During the first couple of weeks in the scheme, many people were complaining about it, which including drink prices going up, boxes and bags dumped next to the machines, the allowance of only cans and bottles that were empty, uncrushed, unbroken and had the original label attached, and also, the limited number of collection points around the state. Although there were plenty of problems throughout Return And Earn, the number of containers that were returned increased, as did the number of collection points. The Environment Minister announced that the scheme has been a success, and they were working hard to fix the minor teething problems. A common label has been developed which will start appearing on bottles and cans: "10c refund at collection depots/points in participating State/Territory of purchase."

As of January 2020, three billion containers have been returned through the scheme,[16] with 69% of eligible drink containers being collected and recycled through the scheme[17] and more than 7 million containers being recycled every day.[16] There are 635 return points set up across NSW.[18]

Northern Territory

The Northern Territory introduced a container deposit scheme similar to South Australia's from 3 January 2012.[19] This was challenged in the Federal Court by Coca-Cola Amatil, Schweppes Australia and Lion Pty Ltd using the Commonwealth Mutual Recognition Act and the scheme ceased on 4 March 2013.[20] Immediately after the Federal Court loss, the NT government personally stepped in to keep the scheme going until a permanent exemption to the Mutual Recognition Act could be secured. On 7 August 2013 the Federal Executive Council (ExCo) ratified the permanent exemption making the NT container deposit scheme completely legal and permanent.[21]

Due to this, all beverage containers sold in Australia now must bear the words "10c refund at SA/NT collection depots in state/territory of purchase". With other jurisdictions implementing their own schemes a common label has been developed which will start appearing on bottles and cans: "10c refund at collection depots/points in participating State/Territory of purchase"

Queensland

In 2013, the Newman government indicated it does not want to increase the cost of QLD residents' costs of living, seeing the refund scheme as more of a tax rather than a refundable deposit even though 85% of Queenslanders are in favor of a scheme according to a Newspoll.[22]

In February 2015, the newly elected Palaszczuk government indicated a total overhaul of the state's environmental policies including supporting a national container deposit scheme and also a state based container deposit scheme. It is likely that QLD will follow suit with NSW.[23]

In May 2015 the QLD government announced its support for a Cash for Containers scheme in Queensland, potentially in 2018 after NSW implements its own scheme. The QLD environment minister said he was inspired by trash that was sent to his office. He ordered a review and wanted to establish an advisory group to help his department with a consultation process with the public and stake holders commencing later in the year. He also said he would work with NSW.[24] Eventually the Queensland government on 22 July 2016 announced that State would have a Container Deposit Scheme "to get drink cans and bottles off our beaches, and out of our parks and public areas".[25] Legislation implementing the scheme was introduced in 2017 along with a statewide plastic bag ban.[26]

Queensland's container refund scheme, known as "Containers for Change", was due to start on 1 July 2018[27] but was delayed to 1 November 2018.[28][29] The scheme is administered by the non-profit company COEX,[30] with collection points operated by Envirobank or TOMRA.[31] The Queensland Productivity Commission was commissioned to review the scheme's impact on prices, with submissions closing on 12 June 2019 and a draft report due on 1 August 2019.[32]

South Australia
See also: Castlemaine Tooheys Ltd v South Australia

In the days when bottles were washed and re-used, drinks manufacturers paid shopkeepers and "marine store collectors" ("bottle-ohs") for the return of their (proprietary) containers, both bottles and crates. By arrangement between the manufacturers, the refund to the consumer was standardized (for many decades 2d, later 6d or 5c. for soft drink bottles and ½d for generic beer bottles) and the collectors received a premium for their part in the process. A substantial cost was incurred by the manufacturer in the transportation, sorting, storage, washing and sterilizing of the bottles and their inspection for contamination and damage. With the advent of cheaper single-use bottles great savings were achievable, and their subsequent disposal the responsibility of the consumer.

CDL in South Australia was put in place under the Beverage Container Act 1975 (SA) and came into operation in 1977.[33] Environment Protection Act 1993 (SA) now governs the levying and refund of deposits.[34]

There is a refund of 10 cents per can or bottle[35] (raised from 5 cents in late 2008). In the 1970s deposits ranged from 20c for a 30 oz bottle and 10c for a 10 oz and 6½ oz bottle. With the introduction of plastic and non re-usable bottles the deposit was reduced to 5c (including aluminium cans). This amount remained unchanged for around thirty years.

Around 600 people are employed in the recovery of bottles in South Australia. Groups such as the Scouts operate container refund depots.[36] While there are professional collectors who collect on an arranged basis from particular venues (e.g. pubs and restaurants), usually operating small trucks for the job, there are also many socially marginalised collectors who forage in spots such as refuse bins for discarded deposit bottles; these collectors often travel by bicycle, sometimes with relatively elaborate and inventive modifications to allow them to carry bulky loads of bottles.

Until 2008, every beverage container in Australia bore the words "5c refund at SA collection depots in state of purchase". This changed to "10c refund at SA collection depots in state of purchase" in late 2008. Since the Northern Territory started their own scheme in 2012, this message has changed again. With other jurisdictions implementing their own schemes a common label has been developed which will start appearing on bottles and cans: "10c refund at collection depots/points in participating State/Territory of purchase".

Tasmania

In December 2014 a state based deposit scheme was rejected by the government, citing costs and the need to ship containers to the Australian mainland for processing.[37] Various environmental organisations, including The Greens and many Tasmanian local councils[38] have been pushing for a scheme in Tasmania for many years. Most people are in favour of a scheme according to various studies that have been conducted over the years.

In 2018 the Tasmanian Government has made a commitment to consider establishing a Container Refund Scheme (CRS) and has engaged a consulting company to produce a report with recommendations. This report is now available and the Tasmanian Government is now reviewing. Further to this, as of June 2019 the Tasmanian government has made a decision to have a refund scheme in place by 2022.[39]

Victoria

The state of Victoria once had a container deposit scheme in the 1980s called "Cash for Cans" but was rescinded in 1989.[10] In 2009 the Victorian Greens introduced a bill for a 10c deposit scheme, which was passed in the upper house but the government quashed the bill in the lower house, allegedly on constitutional grounds, by refusing to allow it to be debated.[40] Despite supporting the Greens' bill when in opposition, when it later became the government the Coalition decided it would not back a bottle refund scheme. Instead, it said it would support a national scheme if one were created.[41]

In 2012/2013, the Napthine government indicated its strong support[42] for a state based scheme possibly in partnership with NSW.

In February 2015, the then Environment Minister Lisa Neville under the Andrews government had publicly said she is not in favour of a container deposit scheme for Victoria. She believes current recycling programs are good enough, even though Clean-up Australia claims beverage related rubbish in Victoria now outnumbers cigarette related rubbish.[43] In July 2017 her successor Lily D'Ambrosio confirmed the state's continuing opposition to a state scheme on the basis that the costs would outweigh the environmental benefits.[44]

In February 2020, as part of a recycling policy overhaul, D'Ambrosio announced that the state would introduce a container deposit scheme by 2023, after consulting with industry and local government.[1] This made Victoria the final Australian jurisdiction to support introducing a container deposit scheme.[45]

Western Australia

In 2011, opposition Labor and Greens MPs called for the introduction of a container deposit scheme. The Minister for Environment, Bill Marmion, said that WA would wait for a national "consultation regulatory impact statement" to be completed at the end of 2011 before taking any action.[46]

In August 2016, the WA Government announced a State container deposit scheme commencing in 2018. Minister for the Environment Albert Jacob said that efforts to pursue a national scheme had "fallen by the wayside" but that Western Australia's policy should be aligned with recent changes in Queensland and New South Wales.[47] After a change of government at the March 2017 election, the new Environment Minister Stephen Dawson said he wanted to make a container deposit scheme a priority. In August 2017 the new WA Government held public consultation, and it will start a container deposit scheme in 2020 in a bid to lift the State's low recycling rates.[48] The scheme will launch under the banner "Containers for Change" on 2 June 2020.[49]

Historical

Through the early 20th century, when the cost of producing glass bottles was higher, a natural industry of glass bottle collectors and merchants performed a similar function to the modern CDL. Bottle accumulators, a licensed and unionized workforce commonly known as "bottle-ohs" from their street cries, travelled by cart around the streets buying empty bottles from households and businesses. They would then sell the bottles to a bottle yard, which would store and sort the bottles before selling them in bulk to brewers and other bottlers. It was an industry from which a bottle-oh could make a good living; in 1904, they could buy a dozen beer bottles for 6d., sell them to the bottle yard for 9d., who could sell them to brewers for 1s.[50] The commercial reuse of glass bottles and the bottle collecting industry had all but disappeared by the 1950s.[51] Soft drink and other beverage bottles were still collected in Queensland and returned for deposits up to the late 1960s.

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See also

References
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  2. "Container deposit scheme gathers momentum". Transport & Logistics News. 7 August 2012. Retrieved 21 August 2012.
  3. "Why we need a Container Deposit Scheme".
  4. "Beverage giants lobby against NSW container deposit scheme". The Sydney Morning Herald.
  5. Castlemaine Tooheys Ltd v South Australia [1990] HCA 1, (1990) 169 CLR 436 (7 February 1990), High Court.
  6. Kirsten Lawson (14 January 2015). "Canberra likely to follow NSW into refunds for drinks containers". Canberra Times.
  7. "Your say: ACT Container Deposit Scheme".
  8. "Soft-drink deposits up". The Canberra Times. 29 August 1974. Retrieved 24 February 2020.
  9. "NSW Government set to introduce a drinks container deposit scheme". ABC News.
  10. "NSW councils back container deposit scheme". Government News.
  11. "How beverage companies joined forces to attack Baird recycling scheme". The Sydney Morning Herald.
  12. http://www.epa.nsw.gov.au/resources/MinMedia/EPAMinMedia17021601.pdf
  13. http://www.smh.com.au/nsw/baird-backs-kids-over-big-beverage-10-for-every-drink-bottle-you-can-find-20160507-gooqih.html
  14. http://www.exchangeforchange.com.au/
  15. https://www.brisbanetimes.com.au/politics/nsw/utter-stupidity-greens-attack-cokes-role-in-nsw-container-scheme-20170731-gxmh5u.html
  16. "3 billion reasons to celebrate". Return and Earn. Retrieved 26 February 2020.
  17. "A billion reasons to celebrate". Return and Earn NSW. Retrieved 8 March 2019.
  18. "Return points". Return and Earn NSW. Retrieved 26 February 2020.
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  21. "Container deposit scheme back on full-bottle track". www.abc.net.au.
  22. http://www.couriermail.com.au/news/queensland/most-queenslanders-want-container-deposit-laws-introduced-but-the-government-cans-the-idea/story-fnihsrf2-1226666475414
  23. "Archived copy". Archived from the original on 11 February 2015. Retrieved 10 February 2015.CS1 maint: archived copy as title (link)
  24. Amy Remeikis (20 May 2015). "Environment Minister Steven Miles tackles Queensland's recycling issue". Brisbane Times. As of May 2016, with NSW formally signing off on a full 10c CDS - it was likely QLD would adopt a similar model for implementation in 2018. QLD was observing the NSW situation closely.
  25. "Container deposit scheme for Queensland". qld.gov.au. Queensland government. Retrieved 27 July 2016.
  26. Branco, Jorge (5 September 2017). "Queensland's plastic bag ban is official, along with recycling refund". Brisbane Times. Fairfax Media. Retrieved 2 May 2019.
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  31. Moore, Tony (1 November 2018). "I tried out Queensland's new recycling scheme so you know what to expect". Brisbane Times. Fairfax Media. Retrieved 2 May 2019.
  32. Caldwell, Felicity (1 May 2019). "Queensland's container refund scheme to drive up the cost of drinks". Brisbane Times. Nine Publishing. Retrieved 2 May 2019.
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  34. "South Australian Legislation – Environment Protection Act 1993". Attorney-General's Department, Government of South Australia. Retrieved 21 August 2012.
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  36. "What are Bottle Bills". Archived from the original on 26 September 2007. Retrieved 22 August 2012.
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  46. Peterson, Oliver (16 November 2011). "A container deposit scheme is proposed for WA". ABC News.
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  49. "WA's container deposit scheme is almost here, trading your bottles and cans for cold hard cash". ABC News. Retrieved 16 September 2019.
  50. "How people live V: the accumulator – money in bottles". Evening News. 28 January 1904. p. 2.
  51. "The silence of the bottle-oh". Sydney Morning Herald. 15 December 1951. p. 2.
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