Chapter 1

Introduction

Conduct of the inquiry

1.1        On 11 October 2012 the Senate referred the following matter to the Environment and Communications References Committee for inquiry and report by 22 November 2012:

The pricing and revenue allocation practices of the beverage industry in the container deposit schemes operating in South Australia and the Northern Territory, including:  

a. management of the operation of container deposit schemes in South Australia and the Northern Territory;

b. the cost structure of the beverage industry's involvement in these container deposit schemes;

c. the use of unredeemed deposits and unused handling and transport fees;

d. alternative scheme structures which ensure beverage producers cannot pass on unreasonable costs from these recycling schemes if such schemes are implemented in additional states or nationally;

e. structures to ensure schemes managed under the Product Stewardship Act 2011 do not result in producers passing on unreasonable costs; and

f. any other related matters.[1]

1.2        In accordance with its usual practice, the committee advertised details of the inquiry on the internet.[2] The committee also contacted a range of organisations inviting submissions by 26 October 2012. The committee received 28 submissions, listed at Appendix 1.

1.3        The committee held one public hearing in Adelaide on 7 November 2012. Details of this public hearing are shown at Appendix 2.

1.4        The committee thanks all those organisations and individuals who contributed to the inquiry.

Structure of the report

1.5        The report consists of two substantive chapters. Chapter 2 provides background information to the inquiry and highlights the reviews this committee has recently conducted into container deposits. Chapter 3 provides a discussion of key issues raised as part of the inquiry, including the pricing of beverages in container deposit schemes, issues surrounding unredeemed deposits and rates of return and one related matter concerning small containers.

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