NEWS - Food & Beverages

Beverage giants claim container rebate will cost industry $500m

Published 6:19 AM, 28 Oct 2009

Beverage industry giants, including Coca-Cola Amatil, Fosters Group and Lion Nathan, are lobbying to stop a plan by the federal government to impose a drink container recycling scheme they claim could cost them nearly $500 million a year, according to The Australian Financial Review.
The companies say the government's proposed 10 cent rebate for used cans and bottles will affect their bottom line, and will ultimately prove ineffective.
Both Family First and The Greens support the scheme, increasing the likelihood that the bill will be passed through the senate.
They say it will save water, reduce landfill and lead to a lift in recycling figures, according to the newspaper.
The National Environment Protection Council will meet next week and is expected to implement plans for the project.

|

Related Industry Sectors

View the latest stories on Food & Beverages

Related ASX Companies

View all stories on COCA-COLA AMATIL

View all stories on FOSTER'S GROUP

View all stories on LION NATHAN

1 Comment

Steve Rutherford, production manager, Portland Bottling Co wrote:
I have lived in the state of Oregon, USA all of my life. When I was a child Oregon passed what we called the “Bottle Bill” requiring a 5 cent deposit on cans and bottles.
The big corporations made the same claims then as they are in this instance. (See Beverage giants claim container rebate will cost industry $500m, October 28.)
The difference is now they know they are lying. They even claimed the bill would bring an end to the bottling industry in the state. Well, since I work for a bottler I'm here to tell you that's a lie too. Our bill was passed with the intent of reducing litter and it worked. As a side benefit recycling in our state (at that time) increased exponentially. I believe one of the keys to making this effective was resting the responsibility for tracking of this deposit on the distributors. Not every can and bottle that goes out comes back and the unclaimed deposit money then is used to offset the cost of tracking it. It ends up costing everyone a little bit, but the benefits in energy savings, less litter, and the good to your country and the planet in reduced energy demands. This law will increase recycling rates thereby saving energy and as a side benefit littering will be reduced as well. At least that has been the experience of every state which has followed Oregon's example.
30 Oct 2009 4:48 AM

Contribute to the Conversation

To contribute your comments for possible publication, please Login or Register.

Preference will be given to succinct contributions. We may contact you via email prior to publication.