National CDL would cost working families $400m per year - 20 February 2008

20 February 2008

Calls for national Container Deposit Legislation (CDL) ignore the significant costs it will impose on Australian families and appear to be based on incorrect data from the South Australian system, according to Dick Wells, Chief Executive of the Australian Food and Grocery Council.

Mr Wells said that a national CDL scheme would cost Australian consumers at least $400 million every year in addition to the $1 billion in deposits they would have to pay up front at the check out.

“Calls for extra costs are out of step with the community when they are already paying for kerbside recycling through their council rates.”

The South Australian deposit system was extended to a wide range of beverage containers in 2003 including flavoured milk containers, but after five years their recovery rate has not moved beyond the national average of 36 per cent. 

Recovery rates for other materials are around 70 per cent according to South Australian Premier Michael Rann (not the 90 per cent often quoted by other parties).

Mr Wells said when you look at South Australia’s performance in terms of overall packaging recovery, the CDL system is only recovering around 20 per cent of all the packaging materials generated in the state and that 80 per cent is actually being recovered through household and commercial recycling collections.

“It is critically important not to undermine the economics of kerbside recycling. International studies show that introducing deposits on top of kerbside systems results in very little, if any, improvement in recovery rates but increases greenhouse emissions and costs .

“Australians have shown they are fantastic supporters of recycling and don’t need to be taxed to make them do so.
 
“The real challenge is for industry and governments, at all levels, to make recycling just as easy away from home as it is now at home,” Mr Wells said.
 

For more information contact Rosie Schmedding at the AFGC on 02 6273 1466 or 0437 379 818.