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Northern Territory Container Deposit Scheme – COAG Decision Regulation Impact Statement – Standing Committee on Environment and Water

On 6 August 2013, the Northern Territory Government announced that it had obtained approval from relevant Ministers for a permanent exemption from requirements under the Mutual Recognition Agreement for its Container Deposit Scheme. The Mutual Recognition Agreement allows goods that can be lawfully sold in one jurisdiction to be sold in other jurisdictions without having to meet additional requirements. This prevents state and territory governments, for example, from unilaterally imposing requirements (such as labelling requirements) on suppliers to facilitate a deposit refund scheme for containers of beverages sold within their jurisdiction. The Decision Regulation Impact Statement (RIS) examines four options for addressing the identified problem of low rates of recovery and reuse of packaging waste, particularly beverage containers, in the Northern Territory:

  • the status quo;
  • a National Packaging Recovery Scheme;
  • permanently exempting the Northern Territory’s Container Deposit Scheme from the Mutual Recognition Agreement; and
  • the Northern Territory becoming a party to the Australian Packaging Covenant (which is an agreement between government, industry and community groups to address packaging sustainability issues).   

The Decision RIS concludes that the option of operating a co-regulatory stewardship to address packaging waste under the Australian Packaging Covenant delivers the highest net present value ($47 million over 25 years), however this option is deemed unviable due to the unique barriers faced by the Northern Territory (including a small and widely dispersed population and a significantly underdeveloped recycling industry). Consequently, the Decision RIS recommends the option of permanently exempting the Northern Territory’s Container Deposit Scheme from the Mutual Recognition Agreement, which is the option assessed as having the second highest net present value ($9.9 million over 25 years). The Decision RIS was prepared by the Northern Territory Department of Lands, Planning and the Environment, and assessed as adequate by the Office of Best Practice Regulation.