Cash for cans scheme given two-month lifeline

A scheme making drink producers refund cash for returned cans is to be propped up by a local government as a legal dispute threatens to derail it.

Australia’s Northern Territory Government environment minister, Peter Chandler (pictured), said the authority would prop up the Container Deposit Scheme (CDS) for two months with taxpayers’ money.

The scheme has been in doubt after a legal challenge ruled drinks companies were not liable for a 10c refund for every returned can.

The Government will now provide the 10c refund for eight weeks, starting on March 27, to allow enough time for legal processes to try to get the scheme back on track; it estimates this will cost (Aus) $2 million.

Three major beverage suppliers in the area and some smaller companies have already said they will discontinue their involvement in the scheme.

Chandler said he needed time to gain the Council of Australian Governments  (COAG) exemption from the Mutual Recognition Act to make CDS work again.

He said: “This decision gives us time to mount an appeal against the recent Federal Court of Australia decision which found the drink companies did not have to comply with the scheme.

“Collection depot operators have clearly articulated that they cannot viably operate without the involvement of these [drinks] companies and will be forced to close their operations.

“We are committed to stand by these businesses until a permanent exemption or successful appeal is attained.”

By Luke Walsh