Why Environment Ministers Must Act on 5 July

Wednesday, 30 June 2010 17:29

Why a RIS into Container Deposits is Needed

Federal and state environment ministers (EPHC) meet on 5 July to decide if they will take the next formal and necessary step of a Regulatory Impact Statement (RIS) into a CDS.  The RIS assesses the benefits and costs of a number of options including types of CDS and deposit levels; and is exhibited for public comment before a final decision.

So far the EPHC has undertaken a number of studies which have delayed a decision to commission a RIS – further delay will exacerbate significant public discontent with the lack of progress.

We understand that the willingness to pay report by PWC found the community value the environmental benefits at over $650m and did not feel there it was inconvenient to return the containers.  If this is applied to the latest (BDA) economic analysis, CD clearly becomes a significant positive economic proposition (taking account of all factors, unlike industry which quotes selectively).  A RIS is the natural next stage particularly given the precedents set by the E-Waste RIS and superficial Packaging Covenant RIS.

Why it’s time for a RIS

• Over the last decade there have been five major studies[1] – all of which show significant benefits from a CDS. There’s been enough research – now it’s time for a RIS to bring it all together to help answer the key questions being posed by supporters and opponents.
• Key bureaucracies keep suggesting more time wasting studies in order to delay a RIS.  They should stop interfering – it’s time for the pubic to have a say.
• A RIS with broad and appropriate terms of reference and independent management can assess a full range of community, economic and environmental benefits and costs – the most recent study by BDA which is before the EPHC has been found to understate the benefits and overstate the costs.  It’s time for a balanced approach.
• Repeated opinion polls show the community clearly support a CDS.  By continuing to delay a decision, ministers and their governments are signalling they don’t want action or a CDS while Australia continues to landfill over 6 billion beverage containers a year.  It’s time to increase recycling.
• A CDS in Australia will produce an 80% recycling rate of containers; major reduction in litter; significant financial benefits to charities; up to 2,000 new jobs; and hundreds of convenient drop-off centres not only for containers but also for other problem wastes such as batteries and electronic items.  It’s time for a new green collection system that can be established by the private sector leaving government to regulate a CDS rather than invest in new infrastructure or impose a new tax.

Some companies in the beverage industry will no doubt be opposing a RIS – they don’t want a balanced assessment or the community to be involved.  They will repeat their previous tactic of refusing to support the Australian Packaging Covenant (APC).  But they are required by law to sign the APC.  And as revealed in the NPC review, the Packaging Covenant has done little to directly increase recycling – which has instead resulted from export materials demand and kerbside recovery systems - which are not linked or benefited by the Covenant.

[1] White Report to NSW Minister for Environment (NSW) 2001; West Australian Stakeholder Advisory Group to Minister for Environment 2007; Boomerang Alliance 2008; BDA Beverage Container Investigation to EPHC 2009; Hyder Report to Tas Environment Dept, 2009.