Rising beverage prices dampen enthusiasm for container deposit scheme

TWO months on from its launch across the state, community members remain divided on the success of the container deposit scheme (CDS).

The CDS, which began November 1 last year, aims to reduce litter across the state by up to 50 per cent by offering a financial incentive for recycling drink containers at designated refund points.

Eligible cans, bottles and cartons can be returned for a 10-cent refund which people can either choose to keep or donate to one of the region’s 633 participating charities, community groups and organisations.

The scheme forms part of the state government’s $515 million investment to transform Victoria’s waste and recycling system with the aim of diverting 80 per cent of all material away from landfill by 2030.

State Member for South Barwon, Darren Cheeseman, said the results from the CDS “speak for themselves”.

“A staggering 63 million containers have been returned across the CDS Vic West Zone, putting over $6.3 million back into the pockets of Victorians and local charities,” he said.

“The purpose of the CDS is to keep litter out of our environment and recycle those materials into new products – the refunds encourage people to return their containers and support local charities in the process.”

However, across the region, community members have expressed frustration with the scheme and complaints about refund points operating at inconvenient times, and being unable to meet local demand, remain common.

In the western parts of the state, CDS refund points are operated by TOMRA Cleanaway.

The company currently oversee 150 refund points across the region, with an additional 30 slated for installation by August.

“We are always reviewing our network of refund points,” a spokesperson for the company said.

“As consumer demand for additional refund points increases across the West Zone, we will explore additional opportunities.

“While there are contracted minimum operating hours for each site, we are driven to provide a convenient and accessible network of refund points…and are always open to feedback from the community.”

Community members have also cited the increased cost of beverages eligible for the scheme as cause for concern, particularly while the cost-of-living crisis continues to impact much of the region.

As a result, many have questioned the benefit of the 10-cent refund.

“CDS Vic is a product stewardship scheme, which means beverage companies pay for the 10-cent refund for each container and the operating costs of the scheme,” a TOMRA Cleanaway spokesperson said.

“The scheme is not-for-profit and ensures that responsible collection and management of all the containers collected occurs.”

These costs are passed onto retailers who have adjusted their prices in store accordingly.

Despite the increased costs and public backlash, many retailers including Coles and Woolworths, maintain their support for the scheme.

“This additional cost covers the 10-cent container deposit that customers can redeem back and contributes to the running and administration of the scheme and is applicable across all retailers,” a Coles spokesperson said.

A Woolworths spokesperson said: “Like in other states where there are applicable price changes arising from the CDS, this has been communicated to customers in our stores.

“Woolworths is supportive of the container deposit scheme based on successful implementation in other states and the positive environmental and recycling outcomes.”

Mirroring the approach taken in other states, the Victorian government will monitor beverage prices for the first 12 months of the CDS to understand the impact on consumers.

Monitoring from other states suggests that, on average, the price of drinks rose 7.7c in NSW and 9.45c in QLD in the first 12 months of CDS operation.