The NSW government is asking the packaging industry for feedback on its container deposits scheme discussion paper, released yesterday.
On 21 February 2015, the Premier, the Hon Mike Baird MP announced that, if he was elected the NSW Government would implement a container deposit scheme (CDS) by 1 July 2017.
Aimed at reducing drink container litter, the state-based CDS is designed to help the government reach its target to reduce the volume of litter in NSW by 40 per cent by 2020 (based on the 2013–14 litter volume).
The government wants to implement a scheme that is cost efficient; gives people an incentive to return their drink containers; targets drink containers used away from home; complements, rather than competes with existing kerbside services; and uses modern technology such as reverse vending machines where appropriate.
The discussion paper, which is available here, presents two possible CDS models, and feedback is invited here.
To ensure the scheme is well-suited to NSW, the government has committed to broad consultation with the community and stakeholders throughout the development process.
HOW DOES IT WORK?
Container deposit schemes are used to encourage the community to return empty drink containers to specific collection sites. When the container is returned, the person returning it receives a reward.
The incentive can be cash or cash-equivalent, for example a 10-cent refundable deposit per container as is used in the South Australian and Northern Territory schemes.
It can also be non-cash/cash equivalent, such as discount coupons, entry into a prize draw, or the opportunity to direct funds to a charity or local community group.
These are a way to reward environmentally responsible behaviour, reduce drink container litter and increase recycling.
They work on littering behaviour by encouraging the person consuming the drink to hold onto the empty container for later redemption. In general, consumers cover the cost of the scheme in the price of the drink when purchasing it.
In this regard, it is based on the ‘polluter pays’ principle, shifting waste management and litter collection costs away from local councils and land managers and on to consumers.
However, a program called The Thirst for Good, designed by members of the National Packaging Covenant Industry Association, has suggested an alternative to the government's scheme.
This program, instead, would require 800 reverse vending machines to be installed at 129 sites across NSW, 17 of which would be in regional areas.
For those containers returned to a machine, a donation would be allocated to one of two local charities or community groups, rather than the returnee.
Instead of a prescribed deposit, such as 10 cents, being applied to single containers, the NPCIA would provide a total $5 million dollars for the scheme, to be distributed between nominated charities.
NSW consumes more than five billion drink containers each year and currently recycles about 60 per cent, mainly via kerbside collection.
With $5 million the scheme would target around 2.5 per cent of the containers not currently recycled, at a 10 cent incentive per container.
