TASMANIA.CREATE OUROWN FUTURE

A TASMANIAN GREENSPOLICY INITIATIVELaunched by Nick McKim MPFebruary 2014

Authorised by Nick McKim MP, Parliament House, Hobart

Tasmanian Cash-for-ContainersScheme

`

Tasmanian Greens Policy Initiative: Tasmanian Cash-for-Containers Scheme | Issued on 2 March 2014 | Authorised by Nick McKim MP, Parliament House, Hobart

> YOUR TEAM IN STATE PARLIAMENT

> WANT MORE INFO? State Parliamentary Offices of the Tasmanian Greens Level 1, 162 Macquarie Street, Hobart, 7000 Postal Address: Parliament House, Hobart, 7000 Phone: (03) 6233 8300 Fax: (03) 6223 1406 E-mail: greens@parliament.tas.gov.au Web: mps.tas.greens.org.au

Tasmanian Greens Policy Initiative: Tasmanian Cash-for-Containers Scheme | Issued on 2 March 2014 | Authorised by Nick McKim MP, Parliament House, Hobart Page 1 of 3

A 2011 opinion poll found 91% of respondents support a beverage container deposit scheme being introduced in Tasmania. Since then a report commissioned by the Local Government Association of Tasmania (LGAT) has also found, on conservative estimates, that such a scheme could reduce kerbside recycling costs by an average of $1.3 million per annum. [1]

We can no longer wait for a national scheme. The Greens will introduce a 10 cent Tasmanian “Cash-for-Containers” scheme.

> THE ISSUE Degree of litter • Tasmania has the worst recycling rates of the nation, with only 14%

of all waste being recycled (estimated to be at least 75, 000 tonnes per year). [2]

• Recent Keep Australia Beautiful research indicates that beverage container related litter represent nearly 30% of all litter volumes found in Tasmania.

• A Cash-for-Containers scheme will help tackle Tasmania’s litter rates. Looking at the example of South Australia, and more recently the Northern Territory, it is estimated the amount of beverage litter will be at least halved, with no cost to local government or the state budget.

Recycling issues • Not all Tasmanians currently have access to convenient recycling

systems. A container deposit scheme will extend access to recycling to the entire population, including regional and rural areas for the first time.

• Only 82% of the state’s population currently has access to recycling services compared to over 95% of the national population. [3]

• It is estimated there are 30, 000 tonnes of beverage containers used in Tasmania each year, but with only 9, 000 tonnes recycled, which is a 30% recycle rate. [4]

• National investigations and report estimate that a 10 cent deposit scheme can result in an overall beverage container recycling rate of over 80%. [5]

• A conservative estimate of the benefit of reduced kerbside costs

in Tasmania as a result of a cash-for-containers scheme being introduced is up to $26.8 million over 20 years or an average of up to $1.3 million savings each year to local councils. [6]

Support for CDL • Despite growing national support for a CDS, a national scheme

has yet to be agreed upon or implemented. Even should COAG agree to do so finally, it is expected there will be lengthy delays before it is rolled out across the nation.

• An EMRS poll conducted in May 2011 returned 91 % support for a container deposit and refund scheme to be introduced in Tasmania.

• In the 2013-14 State Budget, the Greens negotiated a $50, 000 cost –benefit feasibility study to be commissioned into establishing a state based container deposit scheme. The tender for this was granted on 31 January 2014, and we believe we need to be ready to act as soon as possible.

• A recent report for LGAT concludes, “... a CDS will potentially be beneficial to the viability of the Tasmania kerbside recycling system as it will increase the redeemable convertible value of the materials in a kerbside recycling bin.” [7]

It is time for Tasmania to go it alone, as have South Australia and the Northern Territory. > OUR PLAN The Greens will help create approximately 386 new jobs by introducing a 10 cent state-based Cash-for-Containers scheme. To do so, we will:

• Implement the Local Government Association of Tasmania’s call for a $10 per tonne waste levy to be introduced;

• Invest $353, 520 over three years of that waste levy over the short term (0-3 years)∗. The breakdown of this investment is as follows:

Invest $53, 520 for one year to develop a statewide cash-for-containers scheme Implementation Plan;

Invest $300, 000 over the following two years into a CDS-infrastructure grants fund to assist in the restructuring of current processing facilities, or the establishment of new facilities, with the aim that the CDS will become self-sustaining after that.

Tasmanian Cash-for-Containers Scheme Introducing a 10 cent drink containers deposit

The Tasmanian Greens will move to immediately establish a state-based container deposit scheme, kick-started by adopting the local government proposed Waste Levy.

`

Tasmanian Greens Policy Initiative: Tasmanian Cash-for-Containers Scheme | Issued on 2 March 2014 | Authorised by Nick McKim MP, Parliament House, Hobart Page 2 of 3

> DELIVERING OUR POLICY The Greens will legislate to introduce a 10 cent state-based Cash-for-Containers scheme. This scheme will be administered by the Environmental protection Authority (EPA) and the EPA Division of the Department of Primary Industries, Parks, Water and Environment. • To get the scheme up and running we will also implement the

waste levy recommendation in the Local Government of Tasmania Association’s election Manifesto, Collaborating for Communities, which calls for the introduction of: “a statutory waste levy of $10 per tonne, directly hypothecated to waste activities, distributed to regional waste bodies, the EPA, and a waste resources funding pool, to be collected via public and private landfills in order to address existing and emerging waste issues.” [8]

• A recent national Waste Report estimated that in 2006/07 over 446, 000 tonnes of waste went to landfill in Tasmania. A conservative estimate now of applying the $10 per tonne waste levy would raise $4, 600,000 each year.

Distributing the Waste Levy to kick start the Cash-for-Containers scheme: • LGAT also recommends that the waste levy funding be allocated

on the basis of 20% to regional waste bodies; 10% to the Environmental Protection Authority (EPA) and 70% to the Waste to Resources Funding Pool.

• The Greens would hypothecate the waste levy as recommended by LGAT. We would then allocate 2% from the EPA’s 10% allocation and 5% of the regional waste bodies 20% waste levy allocation to fund a $53, 000 Cash-for-Container’s Implementation strategy.

• We would also then allocate a total of 4% over two years from the Waste to Resources Funding Pool (which would receive 70% of the waste levy revenue) into a two year Cash-for-Containers infrastructure fund.

• The $300, 000 over two years cash-for-Containers Infrastructure Fund will assist existing processing facilities to update their premises to provide for a refund mechanism, as well as non-profit and community organisations, such as Scouts or sports clubs, to establish their own collection hubs. This Fund would be administered by the EPA.

Benefit to local councils and ratepayers • It is estimated that by increasing the incentive to redeem

beverage containers, will provide Tasmania a total litter saving of $3.2 million over 20 years, or an average of $160, 000 per annum.

• The Equilibrium 2013 report commissioned by LGAT found that a CDS can potentially benefit Tasmania kerbside recycling through reduced collection costs ($257,000 per year average), reduced

processing costs ($340,000 per year average) and improved material value ($750,000 per year average).

• This represents a potential improvement of the overall system costs of $1.3 million per year.

• The report goes on to estimate a $160,000 per year benefit to local government due to reduced litter management costs should a state-based CDS be introduced, and would also result in a projected reduction in the incidence of litter and therefore associated management, clean-up and disposal costs.

• A CDS will potentially be beneficial to the viability of the Tasmanian kerbside recycling system as it will increase the convertible value of the materials in a kerbside recycling bin.

> Delivering Tasmanian Jobs The South Australian government estimates their CDS directly employs 820 full-time workers, and an additional 290 part-time workers.

The Commonwealth Department of Environment, Water, Heritage & Arts, report estimates that there are 0.8 indirect jobs for every direct job in recycling.

Those figures, and other reports including Boomerang Alliance estimates and Access Economics demonstrate, that by making allowances for Tasmania’s regional and rural population dispersal, and the nature of the technology currently available for use, a Tasmanian Cash for Containers scheme will create around 306 full-time jobs, with an additional 80 part-time positions.

> South Australia’s Example South Australia’s container deposit system has been in operation since 1977, and was one of the first pieces of legislation nationally to implement the ‘polluter pays’ principle.

South Australia’s current beverage container return rate is 80.8%. Drink containers are now estimated to only make up 2.2% of the state’s litter.

In 2012-13, nearly 595 million containers, representing approximately 46, 200 tonnes of containers were returned to South Australian collection depots. This represents nearly $60 million in refunds back to the community.

Scouts South Australia estimate they earn approximately $22 million each year from their involvement in SA’s container deposit scheme.

There are currently 125 approved container return depots across SA’s metropolitan and regional centres, employing an estimated 1, 000 people.

`

Tasmanian Greens Policy Initiative: Tasmanian Cash-for-Containers Scheme | Issued on 2 March 2014 | Authorised by Nick McKim MP, Parliament House, Hobart Page 3 of 3

>References

> TABLE 1: Tasmanian Cash-for-Containers Scheme Investment (from the proposed Waste Levy)

2013-14 Budget

2014-15 Forward Estimate

2015-16 Forward Estimate

2016-17 Forward Estimate

$’000 $’000 $’000 $’000

State Cash-for Containers Implementation Plan* 53 - - -

Cash-for-Containers Infrastructure Grants Fund* - 150 150 -

* Note: As this funding allocation will utilise a portion of the $10 per tonne Waste Levy, this initiative will be cost-neutral to the Consolidated Fund.

[1] An assessment of the potential financial impacts of a Container Deposit System on Local Government in Tasmania, Prepared for the Local Government Association of Tasmania, Equilibrium, December 2013.

[2] Boomerang Alliance, Paper, What Container Deposits Will Do for the Tasmanian Economy, May 2011. [3] ibid [4] ibid [5] ibid

[6] Report prepared for the Local Government Association of Tasmania, Equilibrium, December 2013; pg vi. [7] ibid; pg 19.

[8] Manifesto: Collaborating for Communities, Local Government

Association of Tasmania, February 2014; pg 10.

http://www.epa.sa.gov.au/environmental_info/container_deposits/links

Total Environment Centre Research Report EMRS, May 2011.

∗ Note:- the Equilibrium December 2013 report utilises the following time sale by which to evaluate the costs and benefits of a state-based CDS: the short term = 0-3 years; the medium term = 2-5 years; and the long-term = 5-pls years).

“There are a substantial number of green jobs that will

be created in collection centres, maintaining technology, driving

collection vehicles and administering the systems... for

both direct and indirect jobs, the Cash for Containers scheme will create some 306 full time and 80 part-time positions in

Tasmania. ”

Boomerang Alliance, May 2011