CDS will raise prices and cost jobs, Bev Council says

A container deposit scheme (CDS) will raise prices and cost jobs, despite environmental groups claiming such a scheme won’t affect prices, the Australian Beverages Council has said.

“It is pure fallacy for various environmental groups to be suggesting the price of a can or bottle of drink won’t rise under a container deposit scheme,” said Beverages Council CEO Geoff Parker. “This is simply not the case and, as manufacturers of the product with an intimate knowledge of the supply chain and what it costs to produce a can or bottle of drink, members both large and small tell me the price has to rise.”

While the price rise will impact all manufacturers, Parker said, small manufacturers will be worst affected. “In an already tight market this will mean job losses and some plants will be forced to close,” Parker said.

In addition, the CDS would impose a tax on cans and bottles of drink, which will add an estimated $300 to households’ annual shop, Parker said. “Ironically, families are already recycling their bottles and cans at home and pay for this through their council rates,” said Parker. “The drink container tax is a double hit for families and just not fair.

“The industry supports efforts to increase recycling and reduce litter. But applying a 1970s solution to a 2013 problem is absurd. The NSW Environment Minister knows the plight of small manufacturers if a container deposit scheme is introduced and is aware of cheaper, more effective framework for achieving what we all want, without any cost to consumers.”