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Today, the Australian Productivity Commission released its report on unlocking the opportunities in Australia’s circular economy.  And it specifically points to the disjointed state and territory container refund schemes (Schemes) as a warning of what NOT to do for a successful circular economy. 

The IBA has been pressing for harmonisation as our members are significantly impacted by the unnecessarily complex and expensive regulatory environment created by so many disparate Schemes. This is not the first report finding that the current system is unworkable.  In February last year, the Federal Food for Thought report recommended national harmonisation of the Schemes.

Ostensibly, there have been hoards of government officials and consultants working on a project to at least find some ways to bring commonality to the Schemes, and this has been ongoing for over four years now.  Yet the small brewing businesses that fund the Schemes have yet to see a single tangible deliverable.

There is an old adage – no taxation without representation.  And there is plenty of argument to be had that the container refund scheme contributions amount to a tax on producers (it is a mandatory amount of money that we must give to government controlled bodies).  And yet there is such limited transparency or accountability back to the small producers that fund the schemes on what is being done to keep costs low or drive participation.

Imagine if in our small businesses we simply declined to be accountable to government, refused to pay into the scheme or ignore a regulatory burden?  Would they be given a four year grace period with no requirement to explain? Obviously not.

Ultimately, the people paying the price for this inefficiency and lack of accountability are the Australian consumer who pay the amount the schemes cost to run on every beer that they consume.    And if it was up to the waste industry, consumers would pay even more – and there would still be no accountability.

Earlier this year, the Queensland Parliament established an inquiry into the State’s Container Refund Scheme (Inquiry).

Its safe to say, that one of the reasons the Inquiry came about was due to the powerful lobbying of the waste industry – who want to increase both their financial benefit and their control of container refund schemes across the country. 

Chief among the waste industry’s lobbying goals has been to increase the container refund amount from 10c to 20c.  The waste industry, has been attempting to achieve this goal in every state and territory for many years.   And they were hopeful that they could use the Inquiry in Queensland to obtain that outcome thereby setting national precedent.  Essentially, they are working hard to topple one domino and watch every other state and territory fall.

In arguing for the 20c refund amount the waste industry has masked its efforts as concern for the environment.  The reports that they rely on to substantiate their claim that a refund amount of 20c will significantly improve refund rates due to changing consumer behaviour –do not address the offsetting impacts to the community given the cost-of-living pressures.

At the same time, the waste industry is not transparent that its members are in fact the only ones financially benefiting from the Schemes.  As the operators in the Schemes across the country – big and small waste operators are making a profit, with limited accountability – while independent breweries close and the price of a beer made by an Australian owned business is becoming unaffordable for the average Australian.

The IBA has been forceful in our advocacy, including in our QLD Inquiry submission – any increases to the refund amount will be a direct reason that Australian owned breweries close.

The establishment of the Schemes has seen jobs and profits move from the independent brewing sector to the waste sector.  

Independent breweries pay both the refund amount and the administrative amount on every container sold – irrespective of whether that container is refunded through the scheme or through curbside recycling.

The effect is, that independent breweries keep paying while there is zero accountability on the waste industry, or the Schemes to actually do anything positive to increase the adoption of the scheme by consumers. 

“Hosting friends for a beer and a BBQ at home is about as Australian as it gets.  The cost of container refund schemes adds a significant amount to the cost of a six pack of beer for the consumer – and Australia’s national drink is becoming unaffordable for the average Australian.

With zero outcomes on harmonisation and ongoing efforts by powerful lobbyists to increase their own profit – it’s fair to say we are extremely concerned that Australian owned brewing sector will continue to shrink under the weight of regulation that has no regard for the small producers.

Consumers don’t want to see small breweries close or have to spend more on beer because government bureaucrats can pass the issue around like a football and not actually deliver.”  Says Sabrina Kunz, Chief Executive Officer of the Independent Brewers Association.