The Northern Territory Government has announced it will challenge a recent Federal court ruling which ruled the existing container deposit scheme (CDS) as illegal.

Territory Minister for the Environment, Peter Chandler, said that the challenge to the scheme by a cabal of beverage producers had forced the Government’s hand.

“We had no option in the first place when Coca-Cola Amatil, Schweppes Australia, and Lion Pty Ltd, went to court to challenge our law,” Mr Chandler said.

 "They won. The Federal Court of Australia decided they did not have to comply with the law the scheme operates under.

 “We are lodging an appeal because the scheme is environmentally a winner and too many families, businesses and community groups rely on collecting containers for the 10c refund.

 "Meanwhile, we are confident of gaining a  Council of Australian Governments (COAG) exemption from the operation of the Mutual Recognition Act, which will finally guarantee the operation of the Container Deposit Scheme in the Northern Territory.”