Legal exemption puts can costs back on drink giants
The Northern Territory’s drink container recycling program is back up and running, after it was granted an exemption from a federal law.
Beverage companies are back to paying 10 cents per bottle or can dropped at centres in the Territory; the program was suspended after Coca-Cola, Schweppes and other drink companies fought to stop having to pay for recycling.
In their argument the drink-makers said the NT program was in contravention of a federal law, but the case was seen by some as a deterrent for other states considering similar programs. The Northern Territory has now been granted the same exemption from the federal law as South Australia, which has been running a successful container deposit and recycle scheme since 1977.
The costs to manufacturers are in the millions per month, reports say that was about the amount the NT government had to pick up to keep the scheme going while legal battles continued.
Recyclers in the Northern Territory say the best time for the system was when the Government was making payments. There is concern now from cash-for-cans operators that they will lose money in the return to the old system, which required them to separate deposits by manufacturer as well as material and wait extended periods for payments from the drink companies.