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June 30, 2010

The Shout

Beverage Giants up ante in Refund Wrangle

Beverage industry heavyweights Foster’s, Lion Nathan and Coca-Cola Amatil have urged State Environment Ministers to take into account the increased cost of a national Container Deposit Legislation (CDL) system.

The major beverage manufacturers are against the refund scheme which would force them to offer a 10 cent refund on almost every bottle and can sold in Australia.

The Australian Food and Grocery Council (AFGC), which represents industry interests, yesterday (June 29) cited independent research that suggests CDL would cost consumers almost 40 per cent more than first expected.

In an updated report commissioned by Australia’s Environment Ministers, the estimated cost of a national CDL has been increased by the BDA Group from $492 million a year to $680 million a year following an error in the economic costs of a CDL.

AFGC CEO, Kate Carnell, said the major miscalculation should sound warning bells to Environment Ministers – who meet next Monday (July 5) to discuss the recycling issue – about the cost of implementing a CDL.

“This research once again shows that a national CDL will be incredibly expensive – at the end of the day, consumers will bear the costs of higher priced bottled and canned beverages as well as the costs to government – which in the end is another cost to the community,” Carnell said.

“This $188 million error clearly shows that the choice for Ministers next week is simple arithmetic – they must reject the expensive CDL scheme, which offers a narrow approach to recycling.”

The AFGC is in favour of people continuing to support kerbside collection and away-from-home recycling, which it says work effectively in capital cities and inner-city suburbs across Australia in terms of recycling rates and litter reduction.

To read the revised BDA report, click here.

http://theshout.com.au/2010/06/30/article/Beverage-Giants-up-ante-in-Refund-Wrangle/ZIMEBAORWZ.html


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