The Australian Beverages Council has joined the Australian Food & Grocery Council (AFGC) in voicing concern over a proposed container deposit scheme being spruiked by environmental groups.
Earlier this week, the AFGC described a petition by The Boomerang Alliance as misleading because it failed to disclose that to get a 10c deposit back on glass and plastic drink containers, consumers were likely to have to hand over up to 20c extra at the cash register, not 10c.
It is “pure fallacy” for environmental groups to suggest the price of a can or bottle of drink won’t rise under a container deposit scheme, according to Geoff Parker, the CEO of The Beverages Council, which represents the interests of the manufacturers, distributors and importers of non-alcoholic beverages.
“This is simply not the case and as manufacturers of the product with an intimate knowledge of the supply chain and what it costs to produce a can or bottle of drink, members both large and small tell me the price has to rise,” he said.
He said the price rise would impact all manufacturers, from the very large to the very small, including the many situated in regional towns and producing some iconic Australian brands.
"In an already tight market this will mean job losses and some plants will be forced to close,” Parker said.
“The industry supports efforts to increase recycling and reduce litter. But applying a 1970s solution to a 2013 problem is absurd. The NSW Environment Minister knows the plight of small manufacturers if a container deposit scheme was introduced and is aware of a cheaper more effective framework for achieving what we all want, without any cost to consumers,” he said.
According to the AFGC, an 'away from home' recycling scheme could deliver the same service at no cost to consumers.
Moreover, said Parker, it's also been estimated this drink tax will add an additional $300 to the annual shop for households at a time when they’re already doing it tough.
“Ironically, families are already recycling their bottles and cans at home and pay for this through their council rates. The drink container tax is a double hit for families and just not fair,” he said.
Container deposit schemes run in South Australia and the Northern Territory and according to the AFGC, they were designed and forced on industry by the SA and NT governments.
In March, however, the federal court found that drink companies did not have to comply with relevant provisions of the scheme in the Northern Territory, but the NT Government has since announced it would seek to keep the the container deposit scheme in operation.
