Waste not, want not in refund plan

AS

the ABC’s War on Waste series has demonstrated, issues of marine plastic pollution and waste disposal generally are important to the community.

Recycling is also resonating with the community and local councils, because like other states we are not immune to the change in temperament of the Chinese market.

The Chinese government has now effectively banned the importation of mixed recycled materials because it’s not “clean” enough.

Unfortunately, Tasmania has lagged the rest of the country in reforming its policy approach to waste and recycling.

We are, for instance, the only remaining state with no direction on a waste landfill levy. Even a small levy could help to start pushing materials away from landfill and toward recycling.

Importantly, the State Government last week released a consultant’s report on a 10c a bottle container refund scheme for the state.

The adoption of a container refund scheme in Tasmania would leave Victoria as the only state or territory left without one either established or in development.

The critical question then is what type of refund scheme the Government might adopt. For while it all sounds relatively simple — give 10c back to people who recycle and don’t litter their used containers — in fact, the more than 40 refund schemes operating internationally are each slightly different in their design. In countries and states with a container refund scheme, drink container litter is massively lower and recycling rates much higher than those without schemes.

Clean Up Australia and data from other sources suggest drink containers make up about 40 per cent of all litter.

In NSW, which adopted a container refund scheme late last year, drink container recycling rates have more than doubled from about 33 per cent to about 75 per cent, with an additional half a billion containers recycled since the scheme started on December 1, 2017.

The latest figures estimate a 31 per cent container recycling rate in Tasmania.

A container refund scheme is financially underpinned by what’s called a handling fee.

This is paid to recyclers for the service of receiving, transporting, processing and investing in all the capital of depots, machinery and trucks to do these jobs. This private sector investment avoids councils or state government having to spend money to establish collection centres.

It’s also estimated there could be up to 300 jobs in the state generated from a container refund scheme.

Assuming the Government follows the rest of the country and adopts a container refund scheme, Tasmania could have either a convenient and efficient scheme that results in 90 per cent-plus levels of recycling or a low performing scheme resulting in recycling rates of 80 per cent or below.

South Australia’s relatively inconvenient container refund scheme has a recycling rate of 79.9 per cent. We could do much better.

The beverage industry operates South Australia’s container refund scheme.

Unfortunately, though, this sector is not motivated to achieve 90 per cent-plus recycling rates and Tasmania should avoid handing too much control of its scheme to this sector. In short, drink producers pass on the costs of the refund and handling fee in the price of your drink but don’t pay it back if you don’t recycle. So the less recycling there is the better off they are.

The most expensive container refund scheme therefore is one in which the consumer cannot easily receive the 10c refund they will have paid for.

Achieving high recycling rates is therefore important for the consumer, environment and recycling industry.

At a relatively low 10c refund consumer convenience is going to be vital.

Germany’s refund is about 30c a container, a much larger

incentive for the consumer to return their containers than we will have. Recycling centres and drop off points in locations where consumers naturally go, including at retail centres and through charitable enterprises like Vinnies, etc, will help ensure this all- important consumer convenience. The involvement of community groups in the scheme can also provide valuable employment and fundraising opportunities.

Tasmania is likely to adopt a 10c refund on bottles and cans, especially if and when Victoria does, and given the Government’s pre-election pledge to have the lowest incidence of litter in the country by 2023.

The Government should now consult extensively with the recycling industry and others to ensure the best possible container refund scheme for Tasmania. Hobart’s Robert Kelman is an expert on container refund schemes and has supported the NSW, Queensland and WA governments in designing schemes.

South Australia’s relatively inconvenient container refund scheme has a recycling rate of 79.9 per cent. We could do much better ... It’s also estimated there could be up to 300 jobs in the state generated