NB, Plastic products are derived from Crude Oil
Proposed recycling levy to add $300 to average family’s shopping bill
- From:The Daily Telegraph
- July 14, 2012
6
Source: Herald Sun
A NEW tax on glass and plastic drink containers could push up an average family’s grocery bills by more than $300.
The Greens are heavily lobbying for the container deposit scheme to be introduced nationwide and the federal government supports it.
The scheme could cost some families up to $470 a year more as the new charge pushes up prices on drinks containers by 20c – with industry experts saying it could mean paying $4 more for a case of beer.
Analysis of the proposal by consultants ACIL Tasman suggests middle-income families could expect to pay an extra $312 a year for their groceries and low-income families could be slugged $137, while the wealthiest 20 per cent could expect a $473 rise.
The overall average is a $306 per annum price hike.
The analysis was based on a scheme introduced this year in the Northern Territory, which lifted prices by 20c a bottle – double the 10c refund price paid on the empty containers.
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The analysis by the economics and policy consultancy firm was commissioned by the Australian Food and Grocery Council, which is strongly opposed to the move.
The Greens have introduced legislation in federal parliament in an effort to force the states into a national scheme.
The proposed increase is a 10c levy or deposit per container, which would be refunded if the consumer returned the empty bottle, but the industry claims transport and set-up costs would make the increase double that.
The ACIL Tasman analysis is based on a 20c increase on all drinks containers up to three litres and exhaustively breaks down the average household spend on drinks in each of five income bands.
AFGC spokeswoman Jenny Pickles called on the government to abandon the plan, which she said was “another tax that will push up the cost of grocery bills for families”.
“Cost-of-living pressures are already hurting families. The last thing they need is another tax on basic groceries.
“Just as they’re dealing with hikes in electricity and gas bills, they’ll also have to pay more for milk (and) soft drinks, and beer could go up by an extra $4 a slab.”
Environment Minister Tony Burke said Labor would not force a scheme upon the states.
Instead, he wants them to agree on a national framework through the Council of Australian Governments, with a COAG committee due to decide on the matter next month.
Mr Burke said the cost increases would depend how the states set up their schemes, but that it might not involve imposing a levy on every single container.
The Greens said the reason NT prices increased by 20c a bottle was because of profiteering by the beverage industry, and handling costs might even be as low as 1c to 3c.