Beverage manufacturers that supply eligible beverage containers into the Queensland market have been advised of costs associated with the Container Refund Scheme ahead of the Scheme’s launch on 1 November 2018.
The Scheme, to be funded by beverage manufacturers, has been introduced to increase the recovery and recycling of beverage containers, and substantially reduce litter in the environment.
Container Exchange, or CoEx, is a not-for-profit organisation which has been established by the beverage industry and appointed by the Queensland Government to operate the Scheme. CoEx has today advised the beverage manufacturing, distribution and retail sector of scheme costs ahead of the commencement in November, to allow beverage manufacturers to implement necessary adjustments to their business models.
Mr Alby Taylor, Container Exchange Board Chair, indicated that the estimated weighted average cost for the start of the Queensland scheme was 10.2 cents per container supplied.
"Container Exchange was pleased to be able to provide the cost estimate early to assist beverage manufacturers to plan for the scheme’s introduction," said Mr Taylor.
"The contribution that each business makes to the scheme will be based on individual company market share in Queensland. Manufacturers will be charged on a per-container supplied basis."
Mr Taylor congratulated the Queensland Government for consulting with industry and the community when designing the scheme and for ensuring the scheme was as efficient as possible.
"The Queensland Government has listened to the industry’s feedback and, wherever possible, accommodated that important input," he said.
"A good example is a scheme loan provided by government in response to feedback from industry that will help with cash flow by charging beverage manufacturers in arrears, rather than a calculation based on sales projections.
"Beverage manufacturers will benefit substantially from the cost being based on actual container sales data rather than projected sales.
"It is a commercial decision for each manufacturer to decide how much of the cost they will pass through to consumers or absorb but we’re committed to making the scheme as efficient as we can.
"Our aim is to strike a balance between making sure there are sufficient funds to pay customers’ 10 cent deposit per container while keeping the costs to businesses funding the scheme as low as reasonably possible.
"As the scheme matures and more customers participate in the scheme, we will monitor and adjust the cost accordingly.
"Container Exchange will now prioritise work with beverage manufacturers to register all eligible containers and develop Container Recovery Agreements and Container Export Agreements prior to the Scheme’s launch on 1 November 2018."
On 24 November 2017, the Queensland Government appointed Container Exchange (CoEx) to establish and operate Queensland’s Container Refund Scheme.
The Queensland Parliament passed the Waste Reduction and Recycling Amendment Bill in September 2017, which legislated for companies that supply eligible beverage containers in Queensland, to be charged for the costs of running the Container Refund Scheme.
All beverage manufacturers will provide a declaration on the volume of beverages supplied into Queensland. An invoice for their share of costs will be issued to manufacturers based on the number of containers supplied in their declarations.
---
