Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement November 2012 Beer cans in the Katherine River Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 1. ABOUT THIS CONSULTATION REGULATION IMPACT STATEMENT The Northern Territory Government has prepared the Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement (CDS MRA RIS) in order to seek comment from stakeholders and the wider public on a proposal to exempt the Northern Territory Environment Protection (Beverage Containers and Plastic Bags) Act 2011 from the Mutual Recognition Act 1992 (Cth) and the Trans-Tasman Mutual Recognition Act 1997 (Cth). The CDS MRA RIS follows the Council of Australian Governments’ guidelines in the Best Practice Regulation Handbook and seeks to identify the nature of the problem to be solved, identify alternative policy options and assess the costs and benefits of these options. It has been approved for release by the Commonwealth Office of Best Practice Regulation and provides a valuable means through which government and other stakeholders can consider policy and regulatory options in a focused way. Stakeholder feedback will inform the content of a subsequent Decision RIS. The CDS MRA RIS canvasses both regulatory and non-regulatory approaches, and includes a status quo or ‘no change’ option (recognising that not all problems have a cost-effective solution through government action). OPPORTUNITIES TO COMMENT ON THE CDS MRA RIS The CDS MRA RIS is subject to a four-week consultation period, and the Northern Territory Government welcomes feedback on the proposed options for implementation and any other aspect of the document. The closing date for submissions to the CDS MRA RIS is COB November Monday 3 December 2012. If confidentiality is required, please clearly indicate 2012 this, otherwise all submissions will be made publicly available. Email submissions to: cdsmutualrecognitionris@nt.gov.au Post submissions to: CDS Mutual Recognition RIS Dept Lands, Planning and the Environment GPO Box 2130 Alice Springs, NT 0871 For further information, please contact the Senior Environmental Officer on (08) 8951 9265. Additional copies of the CDS MRA RIS can be downloaded at: www.cashforcontainers.nt.gov.au www.nt.gov.au i Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 2. TABLE OF CONTENTS 1. STATEMENT OF THE PROBLEM ...................................................................................................... 1 1.1. LITTER AND LITTERING TRENDS IN THE NORTHERN TERRITORY ........................................................ 1 1.2. THE NORTHERN TERRITORY’S RECYCLING INFRASTRUCTURE ........................................................... 8 1.3. TRENDS AND BEHAVIOUR CHANGE ..................................................................................................... 8 1.4. NORTHERN TERRITORY CONTAINER DEPOSIT SCHEME ..................................................................... 9 1.5. MUTUAL RECOGNITION PRINCIPLES AND THE ENVIRONMENT PROTECTION (BEVERAGE CONTAINERS AND PLASTIC BAGS) ACT 2011 ................................................................................................ 12 2. OBJECTIVES OF GOVERNMENT ACTION .................................................................................... 14 3. OPTIONS TO ADDRESS THE PROBLEM ...................................................................................... 14 4. 3.1. OPTION ONE – EXPIRATION OF THE TEMPORARY MRA AND TTMRA EXEMPTIONS....................... 14 3.2. OPTION TWO – NATIONAL PACKAGING RECOVERY SCHEME ........................................................... 15 3.3. OPTION THREE – PERMANENT EXEMPTION IS GRANTED ................................................................... 15 3.4. OPTION FOUR – OTHER LESS TRADE-RESTRICTIVE APPROACHES IN THE NORTHERN TERRITORY. 15 IMPACT ANALYSIS ........................................................................................................................... 15 4.1. 4.1.1. Key Results ............................................................................................................................. 19 4.1.2. Costs ......................................................................................................................................... 19 4.1.3. Market and Non-Market Benefits ....................................................................................... 22 4.2. 5. COST BENEFIT ANALYSIS................................................................................................................... 18 November 2012 INDIVIDUAL OPTION ANALYSES .......................................................................................................... 24 4.2.1. Option One – Expiration of the Temporary MRA and TTMRA Exemptions ............ 24 4.2.2. Option Two – National Packaging Recovery Scheme .................................................. 29 4.2.3. Option Three – Permanent exemption is granted ......................................................... 32 4.2.4. Option Four – Other less trade-restrictive approaches in the Northern Territory 46 REFERENCES .................................................................................................................................... 51 www.nt.gov.au ii Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 3. STATEMENT OF THE PROBLEM 3.1. Litter and Littering Trends in the Northern Territory The Northern Territory (NT) faces a significant litter problem. Keep Australia Beautiful National Litter Index figures for 2009/10 show an average of 70 items per 1000m2, a figure above the national average of 66 items (see Figure 1-1)1. Items per 1,000m2 05/06 Volume (litres) per 1,000m2 06/07 07/08 08/09 09/10 05/06 06/07 07/08 08/09 09/10 NATIONAL 70 74 68 63 66 8.86 9.68 8.59 7.73 7.55 ACT - 68 56 56 51 - 7.04 6.06 4.77 3.31 NSW 80 71 77 65 75 14.95 14.69 11.90 12.13 13.43 NT - 64 60 84 70 - 5.32 7.24 6.00 5.09 QLD 89 86 76 59 76 7.66 7.59 7.44 5.60 5.65 SA 60 61 68 57 54 7.23 11.08 9.55 8.02 7.13 TAS 59 70 61 64 86 5.15 6.68 5.90 9.20 9.04 VIC 71 80 48 43 50 7.87 7.74 4.19 WA 60 83 85 87 71 8.57 12.19 13.06 2.87 4.91 November 2012 11.93 9.44 Figure 1-1: State by State assessment of litter by items and volume per 1000m 2 05/06 – 09/10 A significant proportion of this litter is beverage containers, with 5 of the 12 ‘dirty dozen’ being container deposit scheme (CDS) related beverage containers (see figure 1.2)2. In 2007/08 the NT’s total litter count across 76 assessed sites was 934 CDS items (i.e. containers in litter stream that are covered under the NT CDS) counted; the second highest rate in Australia. In 2008/09, the item count dropped to 631 but increased in 2009/10 to 706 (see Figure 1-3). www.nt.gov.au 1 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Dirty Dozen - Volume per 1000 Square Metres - Object Sub-Categories NT - 06/07 to 09/10 1.11 1.04 PLASTIC - Other 0.54 PAPER/ PAPERBOARD - Food container or utensil 0.28 1.33 0.53 0.55 0.43 0.52 1.45 ILLEGAL DUMPING - Total 0.93 GLASS - Alcoholic beverage container 0.33 0.33 0.34 0.47 0.41 PLASTIC - Non-alcoholic beverage container 0.58 0.62 0.57 0.35 0.44 METAL - Alcoholic beverage container 1.96 0.73 0.77 0.28 0.19 0.31 0.34 PAPER/ PAPERBOARD Publication 0.20 0.20 PAPER/ PAPERBOARD - Nonalcoholic beverage container 0.33 0.33 0.19 0.19 0.23 0.13 MISCELLANEOUS - Total METAL - Non-alcoholic beverage container 0.19 0.12 PLASTIC - Food container or utensil 0.17 0.13 0.15 0.19 METAL - Food container or utensil 0.14 0.16 0.17 0.10 0.0 November 2012 0.5 1.0 1.5 2.0 2.5 Litres 2006/07 2007/08 2008/09 2009/10 Figure 1-2: The Dirty Dozen Volume per 1000 square metres. Object sub-categories NT 2006/07 to 2009/10 www.nt.gov.au 2 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement November 2012 Figure 1-3: CDS Litter Items by Jurisdiction 2007/08 to 2009/103 The figure of 706 items counted in 2009/10 represented more than 10% of the total littered CDS items counted across Australia. This is high, considering the NT represents just 1% of the country’s population. Queensland’s littered CDS items also represented 10% of the total national littered CDS count, yet Queensland represents 20% of Australia’s population. In contrast South Australia’s population represents 7.4% of the total population, yet its CDS litter items were just 4% of the total littered CDS items counted across Australia4 (see Figure 1-4). www.nt.gov.au 3 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Population v CDL litter items 35 30 % 25 20 15 10 5 0 SA ACT NT QLD VIC State TAS NSW WA % of CDL litter Items % of population Figure 1-4: State by State assessment of CDS litter vs population 2009/10 The NT’s volume of CDS material (see Figure 1-5) increased from 368 litres in 2008/09 to 399 litres in 2009/10. The average volume of litter indicates that the NT also represents 10% of the total national volume of CDS litter, from 1% of the national population (see Figure 1.1). November 2012 Figure 1-5: CDS Litter Volume by Jurisdiction 2008/09 and 2009/105 www.nt.gov.au 4 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement The high incidence of outdoor beverage consumption in the NT is one likely cause of this exceptionally high CDS item littering rate. Low population density and geographic isolation of many communities exacerbates the problem of litter reclamation and makes effective enforcement of existing regulations problematic. Quantifying the proportion of different types of litter in the overall litter stream is made difficult by the multidimensional nature of litter. This is no less the case when it comes to representing beverage containers as a proportion of the total NT litter stream. Very different estimates can be made using either mass, volume or individual items per 1000m2. An estimate based on mass suggests beverage containers represent, at the very least, around 55% of the NT litter stream by weight6. Alternatively, an estimate based on volume per 1000m2 suggests a proportion of around 33.9%7. Alternatively, in terms of number of items littered per 1000m2, beverage container litter can be estimated to be as little as 13% of NT litter due to the inclusion of items such as cigarette butts. Using the same item-based data but excluding cigarette butts, beverage containers may comprise approximately 25% of all items littered in the NT8. Impacts of Litter Litter negatively impacts visual amenity, soil and water quality and levels of wildlife injury and death (e.g. glass injury and plastics consumption). Litter that is not recovered and not recycled represents a loss of finite resources. November 2012 At what point a given quantity of litter brings about a loss of amenity is a subjective issue. Research suggests the particulars of a given littering event and the type of litter encountered are important. For example, the report Community Preferences for Litter Reduction9 noted ‘There are many reasons that litter suddenly intrudes into conscious thought. It is about a quantum change that suddenly offends. However this quantum change in the presence of litter is not simply about more volume of litter per square metre’. While litter undermines amenity, visual amenity lost to litter may be regained by a significant quantitative or qualitative reduction in litter rather than a total eradication of litter. The report Community Preferences for Litter Reduction notes that single quantitative measures of litter alone (such as weight, or volume/items per 1000m2) www.nt.gov.au 5 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement are unlikely to capture how individuals attribute significance to litter. For example glass may elicit a greater response than paper because of the danger it poses to children and animals when broken. Similarly, litter is particularly disturbing to people when seen in places that are perceived as natural and environmentally intact. Litter that is clearly resource heavy and has good potential for recycling also elicits a stronger negative reaction. The report Community Preferences for Litter Reduction10 notes ‘The most common type of litter noticed by people is food packaging, especially empty cans and bottles, and food wrappers’. Beverage containers do not represent the entire NT litter stream. However they represent a very significant part of it and their particular characteristics make them exceptionally detrimental to visual amenity. Visual amenity is particularly significant to the tourism sector. Among Australian jurisdictions the extent of the NT’s pristine wilderness and ecological diversity is exceptional. In addition, most tourism in the NT is heavily oriented towards environmentally based experiences. Indeed, the NT markets its tourism around the theme of pristine wilderness. Given that visual amenity is an important part of the NT tourism industry, unsightly litter has significant, negative economic implications. While littering within the many recreational parks in the NT is low relative to other site types, it is high on the ‘gateways’ to this site type, such as highways, car parks and beaches (see Figure 1-6). One would expect the recreational sites themselves to be less littered, as tourists accessing them (local and extra-NT) would litter less given2012 November the reason for visiting is usually appreciation of their wild character. www.nt.gov.au 6 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Volume per 1000 Square Metres by Site Type - NT 25 CAR PARK 20 Litres 15 10 BEACH HIGHWAY OVERALL RETAIL 5 RESIDENTIAL INDUSTRIAL 0 NOV.06 SHOPPING CENTRE RECREATIONAL PARK MAY.07 NOV.07 MAY.08 Figure 1-6: NT Volume per 1000 sq m by Site Type. Although there is no current data for the NT regarding links between reduced litter and impacts on tourism, it is reasonable to expect that the high rate of beverage container littering in the NT combined with the environmental focus of most NT tourism will have a significant negative economic impact. There is a common sense link between environmental degradation and customer dissatisfaction in the tourism sector. As fact sheets released by Sustainability Victoria note: ‘litter looks bad…litter negatively affects the image of places, especially tourist locations’11 Other reports note that ‘Litter makes people feel disappointed in others, disgusted,November angry and 2012 cautious.’12 In 2008-9 the total gross value of NT Tourism was estimated to be approximately $1,400 million13. ‘Injury and fatality to vertebrate marine life caused by ingestion of, or entanglement in, harmful marine debris’ has been listed as a key threatening process under the Australian Government's Environment Protection and Biodiversity Conservation Act 1999. NT waters contain many of the twenty marine species listed as endangered or vulnerable in Australia due to the adverse impacts of marine debris, including beverage containers. In this regard, the high relative rate of littering at NT beaches is a matter of particular concern (see Figure 1-6). www.nt.gov.au 7 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Low population density and geographic isolation of many communities also makes the cost of recovering NT litter high relative to other jurisdictions. Litter is rarely recovered on remote communities, especially on community outskirts and along access roads. Due to remoteness a greater number of landfill sites of smaller size are required in the NT which leads to inflated land fill costs associated with reduced economies of scale. 3.2. The Northern Territory’s Recycling Infrastructure Kerbside and drop-off recycling services are currently available to approximately 46% of the NT’s population, being residents living in Darwin and Palmerston14. The recycling participation attributed to these dwellings is 75%. It is estimated that only 23% of the total NT’s at-home consumption of beverage containers is recovered for recycling in the current kerbside and drop-off recycling services offered in Darwin and Palmerston, while the estimated Australian overall beverage recovery rate of at home consumption of beverage containers is 62%15. Low population density and geographic isolation of many communities curtails the maturing and extension of existing resource recovery infrastructure. Any scheme aiming to address litter and resource recovery in the NT needs also to consider positive outcomes for the development of waste management infrastructure. 3.3. Trends and Behaviour Change November 2012 Surveys show that between 2007/8 and 2009/10 there was a minor downturn in the number of CDS items littered in the NT. However, between 2008/9 and 2009/10 there has been an increased volume of CDS litter (see Figures 1-2 and 1-3). At the same time, although there is no emergent upward trend in the numbers of items located at all site types within the NT, there appear to be an increase in the overall volume of litter items across site types (see Figure 1-4). It can be concluded that past regulations did not bring about significant behaviour change in regard to littering in the NT. www.nt.gov.au 8 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 3.4. Northern Territory Container Deposit Scheme In light of the above considerations, the Northern Territory Government (NTG) investigated the potential for an NT Container Deposit Scheme (CDS). Under a CDS, a deposit is added to the sale price of a beverage sold in a container. The deposit is refunded to the consumer after the product has been used and when the container returned to an approved collection depot. Collection depots then return the collected containers to relevant CDS Coordinators who then pay the depots the 10c redemption plus a handling fee per container. In the development of an NT CDS, the key objectives were to minimise environmental pollution by reducing litter and increasing resource recovery. Assessments undertaken prior to the scheme’s commencement highlighted that a CDS in the NT would need to have the following characteristics: ability to provide reasonable access to communities across the NT, including as far as is practicable, remote communities; opportunities for business development, especially recycling and environmental business in the NT; responsiveness to community and industry needs, including minimising costs and maximising benefits to the community and industry; and November 2012 ability to ensure that waste management arrangements are in place and in accordance with the principles of waste management including waste avoidance, reuse, recycling and, where necessary waste disposal. www.nt.gov.au 9 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement The CDS component of the Environment Protection (Beverage Container and Plastic Bags) Act 2011 (NT) (the EP(BC&PB) Act) commenced on 3 January 2012. The Environment Protection (Beverage Containers and Plastic Bags) Regulations 2012 (NT) were also introduced in 2012. The key objectives of the EP(BC&PB) Act relating to beverage containers are to minimise environmental pollution by establishing a CDS to: reduce beverage container litter; and increase resource recovery, reuse and recycling. The EP(BC&PB) Act, supported by the Regulations, requires beverage manufacturers to implement product stewardship by: developing a contractual relationship with a CDS materials coordinator; specifying labelling to identify deposit redemption in the NT; and registering their beverages. Of the 31,596,443 approved containers sold into the NT during the first quarter (January to March 2012 a total of 7,952,502 containers were redeemed (returned to collection depots for a 10 cent deposit).16 These consisted of: November 2012 3,945,851 aluminium cans amounting to approximately 50 tonnes; 1,247,311 polyethylene terephthalate (PET) containers; 2,448,168 glass containers were redeemed amounting to over 450 tonnes of glass; 100,535 high density polyethylene (HDPE) containers; 185,963 liquid paper board containers; and 24,674 other containers, including liquid paper board (LPB), aseptic, plastic and steel containers. www.nt.gov.au 10 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement This represented: 21.9% return rate across all containers/material types; 25.17% redemption rate across all containers/material types; and approximately $800,000 paid out in deposits. While the scheme is in its infancy, monthly figures from four collection depots operating across the first four months of 2012 suggest an exponential expansion in the rate of participation in the scheme (see Figure 1-5). This rapid growth in participation indicates significant behaviour change in the NT in regard to personal responsibility for used beverage containers. To be redeemable under the NT CDS beverage containers have to have been bought after commencement of the scheme, that is, on or after 3 January 2012. Beverage containers must have unobscured labels attached in order that the purchase date can be verified. This requirement provides confirmation the figures provided for the first quarter of the scheme’s operation are not skewed by beverage containers stockpiled prior to the scheme’s commencement. November 2012 www.nt.gov.au 11 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Figure 1-6: NT CDS: Monthly Returns, First 4 Months of Scheme Operation from Four Prominent Collection Depots. The introduction of a CDS is undoubtedly having an impact on existing kerbside recycling in Darwin and Palmerston. However, while a significant proportion of beverage containers will naturally be directed away from kerbside recycling, not all will be. While operators’ collection costs will be reduced, they will receive a substantial benefit from the redemption of those beverage containers still collected at the kerbside. It is anticipated that the two systems will successfully operate in tandem. 3.5. Mutual Recognition Principles and the Environment Protection (Beverage Containers and Plastic Bags) Act 2011 The Mutual Recognition Act 1992 (Cth) and the Trans-Tasman Mutual Recognition Act 1997 (Cth) (MRA and TTMRA respectively) apply as laws of the NT by virtue of the Mutual Recognition (Northern Territory) Act (NT) and the Trans-Tasman Mutual Recognition Act 1998 (NT) respectively. In relation to goods, the MRA and TTMRA apply the ‘mutual recognition principle’. The mutual recognition principle, as explained at section 9 of the MRA, provides that goods produced in or imported into the first State, that may be lawfully sold in that State, may, by virtue of the MRA, be sold in the second State. The Trans-Tasman mutual recognition principle as explained at section 10 of the TTMRA is that goods 2012 produced in or imported into New Zealand, that may be lawfully soldNovember in New Zealand, may by virtue of the TTMRA be lawfully sold in an Australian jurisdiction. These acts also provide that sales of goods to which the principle applies do not require compliance with further requirements of a type set out in the Acts that might otherwise be required under the laws of the importing jurisdiction. These include quality or performance standards, inspection requirements or, most relevant to the NT CDS, labelling standards. The NT CDS component of the EP(BC&PB) Act requires all beverages sold in the NT to carry a label alerting the purchaser to the availability of 10c redemption in the NT if bought there. This provision was designed to conform to the statutory exemptions available under the mutual recognition legislation and it is considered www.nt.gov.au 12 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement that the CDS is not constrained by either the MRA or TTMRA. Nevertheless, to put the matter beyond doubt and to provide certainty for business and consumers, the NT is taking the necessary steps to secure permanent exemption of the CDS from the operation of the MRA and TTMRA. The Mutual Recognition and Trans-Tasman Mutual Recognition Schemes make provision for specific goods or laws to be permanently exempted from their scope by their inclusion in schedules to the MRA or TTMRA. However, the process for adding permanent exemptions is lengthy, requiring the support of the relevant Ministerial Council to seek unanimous agreement of Heads of Government (COAG) to the exemption, the making of regulations by the Commonwealth to amend the relevant Schedules to the MRA/TTMRA and the prior signification of consent to the amendments by all jurisdictions by Gazette notice (in some jurisdictions, i.e. Qld, an Act of Parliament may also be required). Because the permanent exemption process is lengthy, the mutual recognition schemes also allow individual jurisdictions to unilaterally invoke temporary exemptions from application of the mutual recognition principle. Temporary exemptions have a limited life of twelve months (including in aggregate) and cannot be extended. Their purpose is to enable an exemption to be immediately applied while the process for gaining a permanent exemption is pursued. Regulations have been enacted in the NT to temporarily exempt the EP(BC&PB) Act to the extent that it relates to regulated containers from the mutual recognition November 2012 principle as applied to goods under the MRA and TTMRA. The Regulations include sunset provisions for their expiry twelve months after commencement. The temporary exemption for beverage containers expires on 3 January 2013. The EP(BC&PB) Act makes provision for beverage companies to transition to a CDS: beverage manufacturers and importers have been given a two year period over which to make the required changes to their labels. The reason for this is to minimise the inconvenience and cost incurred by those companies in doing so. Giving these companies two years to make the minor alteration to labelling required (‘alteration’ because similar labelling is already required by the South Australian CDS) means they will be able to synchronise it with other unrelated labelling alterations they themselves require as a matter of course. www.nt.gov.au 13 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Since the introduction of the CDS many beverage companies, but not all, have made label changes. It is not clear as to whether or not a lack of across-the-board compliance to date has impaired the growth of the scheme. It may be that start-up promotions of the scheme by the NTG have made up for a shortfall in labels during this transition period. There are no further transitional provisions relating to the scheme more broadly. This Consultation RIS supports the application for permanent exemption of the EP(BC&PB) Act from the mutual recognition legislation. 4. OBJECTIVES OF GOVERNMENT ACTION The key objectives of government action are to: reduce litter; efficiently reduce the negative amenity and environmental impacts of litter in line with community expectations; increase resource recovery and facilitate waste management infrastructure development; and facilitate greater corporate responsibility for the full life-cycle of beverage containers. 5. OPTIONS TO ADDRESS THE PROBLEM November 2012 As part of the RIS process, it is necessary to describe and consider different options that can be implemented to achieve the government’s stated objectives. Below are four options for achieving the stated objectives. The detailed analysis of each of these options is provided in Section 4.2. 5.1. Option One – Expiration of the Temporary MRA and TTMRA Exemptions In the event that the temporary exemptions to the MRA and TTMRA expire, it is expected that the CDS will continue to operate as it currently does in accordance with the provisions of the EP(BC&PB) Act. In this case the outcome would be that of Option 3 below. However, some stakeholders have stated that they believe some www.nt.gov.au 14 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement sections of the EP(BC&PB) Act are open to legal challenge. A successful legal challenge could render the NT CDS less effective or ineffective in achieving its objectives. 5.2. Option Two – National Packaging Recovery Scheme This option links directly to the current national process investigating options for regulating the impacts of packaging, including an option of a national container deposit scheme being carried out by the COAG Standing Council on Environment and Water (SCEW). This process is set out in the Packaging Impacts Consultation Regulation Impact Statement (CRIS)17. A Packaging Impacts Decision Regulation Impact Statement (DRIS) is pending on this. Analysis of a National Packaging Recovery Scheme option is limited as the Packaging Impacts Decision RIS is still being prepared. 5.3. Option Three – Permanent exemption is granted Granting of a permanent exemption from the MRA and the TTMRA will result in the EP(BC&PB) Act continuing to achieve its objectives. 5.4. Option Four – Other less trade-restrictive approaches in the Northern Territory A number of other options for addressing litter reduction and increasing recycling in an NT context are discussed. November 2012 6. IMPACT ANALYSIS The purpose of impact analysis in a Consultation RIS is to present indicative information for public consultation relating to: the estimated net economic impacts of the regulatory and non-regulatory options being considered by governments; the impacts on different groups within the community that are likely to be affected by the options; the risks associated with each option; and www.nt.gov.au 15 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement any effects they may have on competition. Groups within the community expected to be affected to varying degrees include: households/consumers (in all jurisdictions including the NT and New Zealand); businesses (in all jurisdictions including the NT and New Zealand) including: - beverage manufacturers; - beverage importers and exporters; - retailers; - the waste management industry, including existing CDS collection depots; the NT Government and NT local government; the Australian tourism sector; and the NT, NZ and Australian broader community generally. This section provides an analysis of the effectiveness and efficiency of each option in achieving the NT’s environmental objectives. The analysis involves approximate estimates of costs and benefits based on assumptions. The assumptions around household and business participation costs and benefits in particular contain some November 2012 uncertainty. In many instances, where indicated, estimates are based on those presented in the SCEW’s 2011 Packaging Impacts Consultation Regulation Impact Statement (Packaging Impacts CRIS).18 The results presented in that document are generally expressed in present values, meaning costs and benefits across a 25-year assessment period (2011 to 2035) were converted to 2011 dollars using the standard discount rate of 7%. Sensitivity testing was also undertaken to test the impacts of changing key assumptions and inputs to the analysis. In order to undertake a cost-benefit analysis on the options, the Packaging Impacts CRIS estimated the projected packaging recycling and litter reduction performance for its base case and each option. As described in detail in the Packaging Impacts www.nt.gov.au 16 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement CRIS’s Attachment C: Cost Benefit Analysis (Attachment A to this Consultation RIS), these projections were developed based on past recycling and litter trends and a professional assessment of the likely impacts of the initiatives identified for each option. The packaging consumption projections presented in the Packaging Impacts CRIS were based on population projections and historical packaging consumption growth rates. Between 2003 and 2010 packaging consumption in Australia increased at 51% of the rate of population growth. For this analysis the ratio of packaging consumption growth to population growth was assumed to be 51% from 2011 to 2015, 50 per cent from 2016 to 2020 and 49% from 2021 to 2035. The ratio decreases marginally over time due to increased lightweighting of packaging. Recycling projections presented in the Packaging Impacts CRIS were developed by Wright Corporate Strategy (WCS) by consumption location (at-home versus awayfrom-home) and for each product type (beverage containers, non-beverage packaging) based on: a range of identified initiatives (including the time period over which each initiative was assumed to operate); packaging industry plans and targets; experience in other jurisdictions; and assumptions about the maximum achievable recycling rate by product or November 2012 material. Due to the lack of data on actual litter quantities at a national level, litter projections presented in the Packaging Impacts CRIS were developed based on an estimate of the proportion of packaging that could be available to be littered (that is, packaging that is currently not recycled and is consumed in an away-from-home setting). This was estimated to be around 1 million tonnes in 2010. Total litter per annum was estimated to be between 40,000 to 160,000 tonnes, which is between 4% and 16% of total packaging that is available to be littered (details of how this range was calculated was set out in the Packaging Impacts CRIS’s Attachment C: Cost Benefit Analysis, Attachment A to this Consultation RIS). The core assumption for the www.nt.gov.au 17 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Packaging Impacts CRIS base case was that litter volumes would represent 6% of packaging available to be littered, representing around 60,000 tonnes in 2010, which was assessed by WCS to be the most reasonable estimate within the above range. Litter projections were presented in the Packaging Impacts CRIS on a per tonne basis to ensure consistency with collection and recycling projections. For further discussion of assumptions made in the Packaging Impacts CRIS, see the Cost Benefit Analysis of the Packaging Impacts CRIS at Attachment A. 6.1. Cost Benefit Analysis The following parameters apply across all options: Base year of the appraisal: all monetised values are expressed in 2012 dollars; and Evaluation period: 25 years, from 2012: the total period of evaluation needs to be long enough to capture all potential costs and benefits of the proposal. All options are assumed to begin in 2012. 25 years is used to maintain consistency with the current Packaging Impacts CRIS process. Net Present Value (NPV) is calculated by subtracting estimated costs over the evaluation period from benefits. A positive NPV indicates that an option would result in a net benefit to the Australian economy, whereas a negative NPV suggests that an option would impose a net cost. November 2012 As mentioned, a number of estimations have been based on those given in the CRIS. Generally, estimations based on the Packaging Impacts CRIS pertain to costs and benefits for Option 4(A) of the Packaging Impacts CRIS, the Boomerang Alliance Container Deposit Scheme. This is necessary because in certain areas, relevant NT data is held by stakeholders such as industry, rather than the NT Government. Estimates given in the Packaging Impacts CRIS pertain to a national analysis. Where they have been used as the basis for NT estimates, adjustments have been made on the basis of the NT’s proportion of national population (approximately 1%). www.nt.gov.au 18 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 6.1.1. Key Results Table 4-1 summarises the key findings of the cost benefit analysis. The approximate estimations of costs and benefits for permanent exemption (Option 3) return a net benefit. Options Costs Option 1 Option 2 Option 3 Option 4 Expiration of the National Permanent Other less trade- Temporary MRA and Packaging exemption is restrictive TTMRA Exemptions Recovery Scheme granted approaches To be ascertained pending $21,095,00 various / Packaging indeterminate Impacts Decision RIS Market Benefits To be ascertained pending $41,390,000 Packaging various / indeterminate Impacts Decision RIS Non Market To be ascertained Benefits pending $8,010,000 Packaging various / indeterminate Impacts Decision RIS Net Present To be ascertained Value Pending $28,305,000 Not applicable Packaging Impacts November 2012 Decision RIS Table 4-1: Key Results (over 25 years) 6.1.2. Costs Households, businesses (beverage manufacturers and importers / exporters), and the waste management industry, including CDS materials coordinators and collection depots, and governments are assumed to incur certain costs associated with the options. The following provides a summary of these costs. www.nt.gov.au 19 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Scheme design and implementation costs incurred by government include the following: designing and implementing the regulation and making regulatory amendments; communicating the operation of the scheme to households and businesses; and administering the regulation on an ongoing basis, including costs related to compliance and enforcement. Scheme operation and compliance costs incurred by industry include: reporting requirements and updating labels; establishing industry-run organisations responsible for the operation of the scheme; establishing infrastructure; and operating costs. Collection, transport and recycling costs include avoided costs relating to preexisting recycling arrangements. This is chiefly the costs to: November 2012 transport materials from collection infrastructure to existing recovery/recycling facilities; sort/process material delivered to existing recovery/recycling facilities; and landfill residual material that may be rejected due to contamination. www.nt.gov.au 20 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Table 4-2 provides a summary of the annual costs for all of the considered options. Options Option 1 Option 2 Option 3 Option 4 Expiration of the National Permanent Other less trade- Temporary MRA Packaging exemption is restrictive and TTMRA Recovery Scheme granted approaches Exemptions Scheme design To be ascertained pending and Packaging Impacts implementation Decision RIS Scheme various / $7,875,000 indeterminate $40,000,000 operation and compliance –$27,230,000 Collection, transport, process at Material Recycling Facilities Household $4,500,00 November 2012 participation costs Total Costs To be ascertained pending Packaging $21,095,000 various / indeterminate Impacts Decision RIS Table 4-2: Summary of costs for all options (over 25 years) www.nt.gov.au 21 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 6.1.3. Market and Non-Market Benefits The following market benefits for each option were included in the analysis: Market value of resources: The financial market value of recovered resources that are diverted from landfill or the litter stream, including premiums for segregated and cleaner material streams; Avoided operating costs of landfill: the avoided direct costs associated with operating landfills due to diverting material from landfill, including the opportunity cost of land, and other ongoing costs; Avoided costs of litter clean up: the avoided direct costs to the government for the range of services they provide that contribute to litter prevention including municipal litter services, street sweeping and litter clean up services; Economic benefit to NT’s tourism sector. The following non-market benefits for each option were presented in the analysis: Broader environmental and amenity benefits, including the public’s perceived benefit from fulfilment of civic duty. An estimate for the value of these non-market benefits has been derived from the November Packaging Impacts CRIS. In turn, the Packaging Impacts CRIS estimate derives 2012 from a 2010 PricewaterhouseCooper (PwC) study that surveyed households’ willingness to pay for increased packaging recycling and reduced litter, in order to attempt to quantify non-market values. The study found that households were willing to pay on average $2.77 per year for every 1% increase above current national levels of packaging recycling with lower and upper 95% confidence interval of $2.19 and $3.77. The willingness to pay value for increased recycling ascribed to the Packaging Impacts CRIS Boomerang Alliance CDS Option has been applied here, using the upper 95% confidence interval. The upper level was used in line with the current high uptake of CDS in the NT, as discussed in section 1.5 above (see also Figure 1-5). The Packaging Impacts CRIS estimate has been adjusted in line with NT’s proportion of national population (approximately 1%). www.nt.gov.au 22 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement This willingness to pay figure has been presented in the analysis to allow for these non-market aspects to be taken into consideration. However, in the analysis an explicit differentiation has been made between ‘market’ and ‘non-market’ benefits. This is because there is a heightened uncertainty around the non-market figure: there is possibly an element of double counting (as survey participants may have considered market values associated with packaging when estimating their willingness to pay). Table 4-3 summarises the market and non-market benefits for all the considered options. Options Option 1 Option 2 Option 3 Option 4 Expiration of the National Permanent Other less trade- Temporary MRA Packaging exemption is restrictive and TTMRA Recovery granted approaches Exemptions Scheme To be ascertained Pending National $4,630,000 various / Market Benefits market value of resources Packaging indeterminate Impacts Decision avoided landfill RIS. $620,000 operating costs avoided litter $1,140,000 clean up benefit to NT $35,000,000 November 2012 Tourism sector Non-market Benefits environmental $8,010,000 and amenity benefits Total Benefits To be ascertained Pending $49,400,000 Decision RIS various / indeterminate Table 4-3: Summary of Market and Non-Market Benefits (over 25 years) www.nt.gov.au 23 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 6.2. Individual Option Analyses 6.2.1. Option One – Expiration of the Temporary MRA and TTMRA Exemptions In the event that the temporary exemptions to the MRA and TTMRA expire, a number of outcomes are possible. These range from the NT CDS continuing unimpaired (and the estimation given as the net benefit for Option 3 results), through various degrees of impairment, to the outright demise of the EP(BC&PB) Act (with the waste management industry suffering some loss of investment to date). These possibilities are discussed below. Although it is expected the first of these possibilities (that the CDS will continue to operate as it currently does in accordance with the provisions of the EP(BC&PB) Act) is most likely, the NTG considers it prudent to seek permanent exemption as a means of eliminating the risks associated with the alternative outcomes. The possible scenarios are: 1. The NT CDS continues to operate as it currently does. This is considered the most likely outcome. In this scenario: all beverage companies continue to comply with the EP(BC&PB) Act; some beverage companies consider it possible that sections of the November 2012 EP(BC&PB) Act are inconsistent with the MRA or TTMRA. In particular, that the requirement that they change labels may be unenforceable; nevertheless, beverage companies who have already changed their labels maintain them, those who have not yet done so go ahead and change labels at the most opportune time; beverage companies do so because they wish to be regarded as good corporate citizens and do not wish to receive negative environmental publicity resulting from not complying with a scheme popular with the NT community; and www.nt.gov.au 24 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement beverage companies amortise the costs of the scheme through very small price rises nationally. Under this scenario, the costs and benefits for Option 1 would be similar to those of Option 3 (permanent exemption). 2. To some indeterminate degree, the functioning of the NT CDS is impaired. The NT CDS runs less efficiently due to enforcement issues relating to the application of mutual recognition. In this scenario: some, or all, beverage companies consider sections of the EP(BC&PB) Act to be inconsistent with the MRA or TTMRA. In particular they hold the view that the requirement that they change labels is unenforceable; some or all beverage companies decide not to comply with the EP(BC&PB) Act; they do not maintain already changed labels, or do not change labels within the two year timeframe; their decision to do so survives a legal challenge; the NT CDS continues, but without the benefit of all beverage containers bearing the required labelling; the existence of the scheme is widely known to Territorians and November 2012 ongoing information about the scheme (and which beverage containers are redeemable) is made known to the community through other forms of publicity; and the objectives of the EP(BC&PB) Act continue to be realised but with some degree of reduced effectiveness. The extent of this impairment cannot be known at this point in time. The degree of lost efficiency might be measured in terms of reduced net benefit. A 10% reduction in efficiency might result in a given reduction in net benefit. 3. The scheme becomes entirely unenforceable. Under this scenario: www.nt.gov.au 25 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement all beverage companies consider sections of the EP(BC&PB) Act to be inconsistent with the MRA or TTMRA. In particular they hold the view that the requirement that they change labels is unenforceable; a legal challenge results in all aspects of the EP(BC&PB) Act being deemed entirely unenforceable; no beverage companies comply with the EP(BC&PB) Act; all beverage companies terminate their contracts with coordinators and depots; the EP(BC&PB) Act’s objectives are not realised; and the waste management industry investment in infrastructure to support the NT CDS may not be fully recovered. To fully explore this option and its possible impact on the waste management industry, the waste management industry’s capital expenditure to date on NT CDS infrastructure needs to be ascertained. Table 4-4 summarises the cost / benefit analysis for Option 1. Costs scheme design and implementation to be ascertained scheme operation and compliance collection, transport, process at recycling facilities November 2012 household participation costs Market Benefits market value of resources to be ascertained avoided landfill operating costs avoided litter clean up benefit to NT Tourism sector Non-Market benefits environment and amenity to be ascertained NPV to be ascertained Table 4-4: Cost and benefit analysis for Option 1. www.nt.gov.au 26 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement OPTION ONE – CONSULTATION QUESTIONS FOR STAKEHOLDERS Beverage Industry in all Australian and NZ Jurisdictions To what extent do stakeholders from the beverage industry intend to comply with the Act if a permanent exemption is not granted? Will stakeholders from the beverage industry: not label beverage containers, as stipulated by the Act? revert to old labels if changed already? not comply with other aspects of the Act? If not, which aspects? If stakeholders from the beverage industry do not comply with labelling requirements or other requirements of the Act: what costs will they avoid? what benefits will they lose? What alternative steps would beverage industry stakeholders introduce to remediate the littering in the NT of beverage containers they have manufactured? what would be the costs and benefits of this alternative program? Waste Management Industry and Collection Depots in the NT and other November 2012 Jurisdictions What would the impact be on the waste management industry if stakeholders from the beverage industry failed to comply with some or all aspects of the Act? How much have the waste management industry and collection depots invested to date in NT CDS infrastructure? would this investment be lost if the beverage industry failed to comply with labelling requirements alone? would this investment be lost if the beverage industry failed to comply with other requirements of the Act? What would be the impact on the market value received from resources recovered through the scheme if the beverage industry failed to comply with some or all www.nt.gov.au 27 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement requirements of the Act? Local Government If stakeholders from the beverage industry do not comply with part or all of the Act, how would litter recovery costs be impacted? What would be the impact on avoided landfill operating costs? How would kerbside recycling be impacted? in terms of viability? in terms of reduced costs due to less beverage containers collected? in terms of composition of existing services? Households/Consumers in all Australian and NZ Jurisdictions If stakeholders from beverage industry do not comply with part or all of the Act, how would household participation costs be impacted? What would be the impact on benefits associated with environmental and amenity improvements? Tourism Industry in the NT, other Jurisdictions and NZ If stakeholders from the beverage industry do not comply with part or all of the Act, what would be the impact on the NT Tourism sector? November 2012 www.nt.gov.au 28 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 6.2.2. Option Two – National Packaging Recovery Scheme This option is currently the subject of the SCEW’s National Packaging CRIS. The consultation process may lead to analysis modification. Until the results of the Decision RIS are known, full analysis here is not possible. The Packaging Impacts CRIS explores a limited number of measures that have the potential to increase packaging resource recovery rates and decrease packaging litter. The objectives of the considered government actions were to: reduce packaging waste and increase packaging resource recovery; reduce the need to landfill recyclable packaging materials; reduce the negative amenity, health and environmental impacts of packaging waste and litter in line with community expectations; and promote a consistent national approach to regulating packaging. Options considered were: Option 1: National Waste Packaging Strategy Option 2: Co-regulatory Packaging Stewardship, with three specific suboptions: 2 (a): the Australian Packaging Covenant replaced by November co-regulation 2012 under the Product Stewardship Act 2011 2 (b): Industry Packaging Stewardship 2 (c): Extended Packaging Stewardship Option 3: Mandatory Advance Disposal Fee Option 4: Mandatory Container Deposit Scheme, with two specific sub-options: 4 (a): Boomerang Alliance CDS 4 (b): Hybrid CDS www.nt.gov.au 29 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement The key results of the cost benefit analysis (CBA) showed that: all options result in an overall increase in recycling by 2035; Option 2 (a) is the only option that has a positive NPV; all other options were assessed in the CBA as having negative NPVs and benefit costs ratios (BCR) lower than 1. This suggests that for these options, the market costs are greater than the benefits; Options 1 and 2 (b) involved relatively low costs and benefits and result in small net costs to the economy, whereas Options 2 (c) and 3 involve higher costs and benefits and result in larger net costs; and Options 4 (a) and 4 (b) were the highest cost options. While these options have high resource recovery benefits, due to a price premium from materials collected through a CDS, these benefits are lower than the overall higher costs. In 2010 a study of households’ willingness to pay for increased packaging recycling, to quantify non-market values such as environmental benefits or a feeling of civic duty was undertaken. In Table 4-5, the willingness to pay values for increased recycling are applied across the options being assessed, using the point estimate and lower and upper 95% confidence interval limits. The figures below were presented alongside the CBA results to allow for these non-market aspects to be taken into consideration in assessing the overall costs and benefits November of the options.2012 Option 1 National Waste Packaging Strategy Option 2 (a) Coregulation Option 2 (b) Option 2 (c) Option 3 Option 4 (a) Industry Packaging Stewardship Extended Packaging Stewardship Mandatory Advance Disposal Fee Boomerang Alliance CDS Option 4 (b) Hybrid CDS Lower estimate $234 $233 $422 $689 $689 $465 $465 Point estimate $296 $295 $534 $871 $871 $588 $588 Upper estimate $403 $402 $727 $1,186 $1,186 $801 $801 Table 4-5: Summary of Willingness to Pay (for Increased Recycling) Benefits ($ Millions) OPTION TWO – CONSULTATION QUESTIONS FOR STAKEHOLDERS www.nt.gov.au 30 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Beverage Industry in all Australian and NZ Jurisdictions Do stakeholders from the beverage industry support a National Packaging scheme over a NT CDS? Do stakeholders from the beverage industry support a National CDS over a NT CDS? Waste Management Industry and Collection Depots in the NT and other Jurisdictions Do stakeholders from the waste management industry and collection depots support a National Packaging scheme over a NT CDS? Do stakeholders from the waste management industry and collection depots support a National CDS over a NT CDS? Local Government Do stakeholders from local government support a National Packaging scheme over a NT CDS? Do stakeholders from local government support a National CDS over a NT CDS? Households/Consumers in all Australian and NZ Jurisdictions Do households and consumers support a National Packaging scheme over a NT CDS? Do households and consumers support a National CDS over a NT CDS? Tourism Industry in the NT, other Jurisdictions and NZ November 2012 Do stakeholders from the tourism sector support a National Packaging scheme over a NT CDS? Do stakeholders from the tourism sector support a National CDS over a NT CDS? www.nt.gov.au 31 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 6.2.3. Option Three – Permanent exemption is granted The granting of a permanent exemption from the MRA and the TTMRA will result in the EP(BC&PB) Act continuing to achieve its objectives. Table 4-6 summarises the costs and benefits for Option 3. Description of Costs / Benefits Value Costs scheme design and implementation $7,875,000 scheme operation and compliance $40,000,000 collection, transport, process at material recycling –$27,230,000 facilities household participation costs $4,500,000 (total costs) ($21,095,000) Market Benefits market value of resources $4,630,000 avoided landfill operating costs $620,000 avoided litter clean up $1,140,000 benefit to NT tourism sector $35,000,000 (total market benefits) ($41,390,000) Non-market Benefits willingness to pay calculation $8,010,000 (total non-market benefits) NPV (Net Present Value = benefit minus cost) ($8,010,000) $28,305,000 Table 4-6: Cost and benefit analysis for Option 3 November 2012 Scheme design and implementation costs Scheme design and implementation costs to the NTG over 25 years (chiefly enforcement) will amount to approximately $315,000 per annum, as has been set out in the current NTG’s CDS implementation budget. Scheme operation and compliance costs The majority of the costs of Option 3 are borne by beverage manufacturers and importers. The jurisdictional breakdown for these companies is as follows: 56 NSW www.nt.gov.au 32 Northern Territory Container Deposit Scheme Mutual Recognition Act 47 Vic. 29 SA 10 Qld 9 WA 1 NT 1 USA 0 NZ Consultation Regulation Impact Statement Beverage manufacturers/importers have the option to pass costs on to consumers/households exclusively in the NT or to amortise the costs across all jurisdictions in which they sell their products. It is not known to what extent beverage companies have passed on costs directly associated with the NT CDS to consumers via price rises. Operating costs have therefore been credited to beverage manufacturers rather than households / consumers. Because the NT CDS is a market-based and operated program and because the costs relating to the operational implementation are borne in the first instance by the beverage industry, such cost data is not available to the NTG. In response to this, November 2012 the cost nominated here is an indicative estimate only based on and consistent with the assumptions used in the Packaging Impacts CRIS for the Boomerang Alliance (BA) option.19 The BA cost model adopted the conventional approach to estimating the cost of CDS arrangements whereby estimates are made of the various cost elements on a per container basis. Further, consistent with current normal practice for estimating costs for CDS arrangements in Australia, there was no separation of capital and operating costs. Instead one unit cost is used and is fully inclusive of both capital and operating costs. The model contains the following elements: service areas – such as the cost to consolidate containers, the cost of transport, the cost of RVMs etc; www.nt.gov.au 33 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement localities for services – such as kerbside, RVM sites, regional depots and rural and remote depots etc; and unit costs – the cost per container for delivery of the relevant service at the designated locality, as a fully inclusive capital and operating cost. In the BA model, detailed supporting estimates were provided of the distribution of containers throughout the system covering the number of containers likely to present for re-aggregation at each of the localities where services are provided. Using this data, the BA model estimated the cost to deliver CDS services at each of the localities and to aggregate the containers to centralised locations for reprocessing. The value adopted for Option 4(a) was 4.5 cents/container and 6.0 cents/container in rural and remote locations. Co-ordination across the system was 0.4 cents/container, baling and transport from collection centres, RVMs and rural and remote collection points to hubs (urban and rural) was 0.72 cents/container, and rural and remote transport from hubs to reprocessors was estimated at $106.30 per tonne. These estimates are based on the economic costs of the CDS infrastructure (i.e. include capital and operating costs) and exclude the payment of financial incentives to rural and remote infrastructure operators. These costs are consistent with the 4.0 cents/container handling cost used by BDA Group and WCS in the Beverage Container Investigation20. Further, the above handling costs are in line with the 4.25 cents/container depot handling fee estimate November 2012 proposed by Stefan Gabrynowicz in his 2009 paper on the South Australian CDS21. These estimates are higher than estimates of current industry costs for the South Australian scheme. The South Australian Environment Protection Authority estimates South Australian costs to be at 4.25 cents/container22. A CDS in the NT requires development of more infrastructure and therefore NT costs are estimated to be higher than the SA scheme’s costs. The costs of changing beverage container labels to reflect the scheme’s operation from reading: ‘10c refund at collection depots when sold in S.A.’ to ‘10c refund at SA/NT collection depots in State/Territory of Purchase’ does not represent a cost significant enough to register. The national beverage industry must already comply with the South Australian CDS. Only a simple modification is required to existing www.nt.gov.au 34 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement labelling. A two year transitional period has been granted under the Act. The national beverage industry can therefore make the change at a time when other labelling changes are already scheduled for processing. Administrative costs associated with management of deposits and handling fees collected and paid to CDS materials coordinators and administrative costs associated with reporting on NT sales to CDS materials coordinators will represent a negligible increase on administration costs already borne for this purpose in relation to the SA CDS. Considering all these factors, annual operation and compliance costs for Option 3 are estimated at approximately $40,000,000 over 25 years. This estimate is essentially an adjustment of the Packaging Impacts CRIS Boomerang Alliance option estimate, in line with NT’s proportion of national population. It also considers factors such as the negligible costs associated with label changes. Collection, transport, process at material recycling facilities CDS operating costs are offset to a certain extent by avoided cost of collection, transport and recycling as a result of beverage containers being diverted away from existing recycling systems. The Packaging Impacts CRIS estimated costs associated with household kerbside collection to be $187/tonne and those associated with commercial and industrial sector collection to be $26/tonne to collect and transport used packaging from accumulation points such as recycling bins to material recovery facilities. For further details, see the Cost Benefit Analysis Report from the Packaging Impacts CRIS at Attachment A. November 2012 Using the figures employed by the Packaging Impacts CRIS for the Boomerang Alliance CDS option and adjusting it in line with NT’s proportion of national population, it is estimated that beverage container redemption under an NT CDS will lead to avoided collection, transport and recycling costs for local governments and commercial businesses. These avoided costs equate to around $27,230,000 over the 25 year period. As noted above, it is estimated that only 23% of the total NT at-home consumption of beverage containers is recovered for recycling in the current kerbside and drop-off recycling services offered in Darwin and Palmerston, while the estimated Australian www.nt.gov.au 35 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement overall beverage recovery rate of at home consumption of beverage containers is 62%23. While the NT’s recycling infrastructure requires further maturation, it is likely to have costs far greater than in other jurisdictions due to the absence of economies of scale and increased inter-urban and inter-state/territory transport costs. There is therefore some degree of uncertainty around this figure. A CDS will impact existing kerbside recycling. While a significant proportion of beverage containers will be directed away from kerbside recycling, not all will be. Collection costs of kerbside collection will be reduced; however, operators will receive a substantial benefit from the redemption of beverage containers they still receive. In this way it is anticipated that the two systems will successfully operate in tandem. Household participation costs A figure of $4,500,000 has been provided against this sector. This estimate is an adjustment of the Packaging Impacts CRIS Boomerang Alliance CDS estimate, in line with NT’s proportion of national population. A variety of key assumptions in the Packaging Impacts CRIS analysis centred on vehicle operating costs, in-vehicle travel time, accumulation time and container deposit redemption time. For further details, see the Cost Benefit Analysis Report of the Packaging Impacts CRIS at Attachment A. November 2012 In the NT it is likely to be significantly less than this because household participation costs associated with travel to depots can be made inconsequential by households incorporating this travel into other existing trips. While this may be difficult in southeastern jurisdictions due to urban sprawl and congestion, travel within the NT urban and remote centres may be of greater distances but is highly convenient. Furthermore Reverse Vending Machines in the NT allow incorporation of redemption of containers into existing shopping trips. Given these factors, there is a significant degree of uncertainty to this figure. Market Benefits www.nt.gov.au 36 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Option 3 generates resources that can be sold on the recycle market. The quality is high due to low contamination. Consistent with the methodology employed in the Packaging Impacts CRIS Boomerang Alliance CDS option and in line with NT’s proportion of national population, estimates as to the market value of resources under the NT CDS amount to approximately $4,630,000 over 25 years. The Packaging Impacts CRIS estimates were based on assumptions as to the mediumterm prices of packaging materials, which range between $30 and $1,560 per tonne depending on the material. The Packaging Impacts CRIS estimates factored in a price premium for certain materials collected through a CDS due to the reduced contamination of kerbside materials under CDS. For further details, see the Cost Benefit Analysis Report of the Packaging Impacts CRIS at Attachment A. Consistent with the methodology employed in the Packaging Impacts CRIS Boomerang Alliance CDS option and in line with NT’s proportion of national population, estimates of the avoided landfill operating costs due to the NT CDS amount to approximately $620,000 over 25 years. The Packaging Impacts CRIS estimates were based on assumptions around the private costs of landfill, including: the opportunity cost of land; land purchase; the approval process; equipment and buildings; construction costs such as excavation and lining of landfill bases to minimise November 2012 leaching; on-sight gas recovery and flaring; fencing and other measures to prevent waste from being blown into neighbouring properties; operational costs like fuels and materials; monitoring and reporting; capping landfills and landscaping; www.nt.gov.au 37 Northern Territory Container Deposit Scheme Mutual Recognition Act rehabilitation and aftercare; employee costs; and contractors costs. Consultation Regulation Impact Statement For further details, see the Cost Benefit Analysis Report of the Packaging Impacts CRIS at Attachment A. Consistent with the methodology employed in the Packaging Impacts CRIS Boomerang Alliance CDS option and in line with NT’s proportion of national population, estimates as to avoided litter clean up are approximately $1,140,000 over 25 years. A key assumption in the Packaging Impacts CRIS is that the cost per anum per person for litter services in Victoria ($13.90) is similar to other jurisdictions. The analysis reduces litter clean up costs in proportion with the percentage reduction in litter tonnes relative to the base year and packaging litter as a proportion of all litter. For further details, see the Cost Benefit Analysis Report of the Packaging Impacts CRIS at Attachment A. Benefit to Northern Territory Tourism sector It is reasonable to expect that the high rate of beverage container littering in the NT combined with the environmental focus of most NT tourism will have a negative economic impact. There is a common sense link between environmental degradation and customer dissatisfaction in the tourism sector. As fact sheets released by November 2012 Sustainability Victoria note, ‘litter looks bad…litter negatively affects the image of places, especially tourist locations’24. Other reports note that ‘Litter makes people feel disappointed in others, disgusted, angry and cautious.’25 Such feelings do not engender a satisfying tourist experience. Most tourism in the NT is heavily oriented towards environmentally based experiences; indeed, the NT markets its tourism around the theme of the NT’s pristine wilderness. As discussed, CDS items may amount to over 55% of NT litter as a whole in terms of weight. Quantifying the proportion of different types of litter in the overall litter stream is made difficult because of the multidimensional nature of litter. However, it is clear that removal of beverage containers from the litter stream would not represent the www.nt.gov.au 38 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement end of litter as a whole. Yet, the impact on amenity of litter is also subjective: different types of litter generate different responses. As discussed in Section 1.1, research suggests beverage containers generate a response that may be disproportional to the portion of the litter stream they represent26. In other words, littered beverage containers more readily illicit feelings of lost amenity than other types of litter. The introduction of a CDS is likely to bring about behaviour change which may have flow-on affects in terms of the littering of non-CDS articles. In 2008-9 the total gross value of NT Tourism was estimated to be approximately $1,400 million. Representing the benefit of significant litter reduction (derived from the removal of beverage containers from the litter stream) with a monetary figure is difficult. A very conservative benefit of 0.1% of tourism’s value to the NT economy is proposed here. This translates to a benefit of approximately $1,400,000 per annum. This figure is an indicative estimate; the significant degree of uncertainty around it is acknowledged. Non-Market benefits These benefits cover broader environmental or amenity benefits, or feelings of fulfilled ‘civic duty’. They are estimated on the basis of the ‘willingness to pay’ research cited in the Packaging Impacts CRIS. High initial return rates given the NT CDS has only commenced on 3November January 2012 2012 suggests that the NT CDS is having a significant impact on recycling levels in the NT. Figure 1-5 (Section 1) represents monthly figures from four collection depots operating across the first four months of 2012 which suggest an exponential expansion of the rate of participation in the scheme. There is a likelihood this rate of growth will continue in the near to medium term. For this reason non-market benefits, derived from ‘willingness to pay’ research cited in the Packaging Impacts CRIS, have been included alongside market benefits here. The significant impact of the NT CDS is estimated to translate into an NT benefit of approximately $8,010,000. This estimate is an adjustment of the Packaging Impacts CRIS Boomerang Alliance CDS option estimate, in line with NT’s proportion of national population. National Impacts www.nt.gov.au 39 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement The following analysis considers the costs and benefits of Option 3 at a national level, that is, in terms of the impacts on individual jurisdictions and the Australian Government. Because there are no beverages imported from New Zealand into the NT, that jurisdiction receives no impacts. The scheme design and enforcement costs are borne exclusively by the NT Government. The impact of scheme implementation and compliance costs on each Australian jurisdiction is dependent on how costs are ultimately borne. The beverage industry is believed to currently amortise its costs relating to the SA CDS nationally, by adjusting beverage prices commensurate with handling fees paid in SA consistently across all jurisdictions. The national beverage industry may choose to similarly amortise costs borne relating to the NT CDS nationally. In this case consumers in all jurisdictions would bear costs equally. Alternatively, beverage industry costs might be fully or partly passed on to NT consumers exclusively; or the beverage industry might choose to bear the costs relating to the NT CDS itself. The benefits that come from the market value derived from the resources collected falls exclusively to those who control the end fate of the product collected. This currently falls to the five CDS Coordinators currently operating in the NT. The avoided externality costs (e.g. landfill operating costs) exclusively benefit the 2012 NT November Government and NT local governments. The avoided costs of litter clean up benefit the NT Government and NT local governments. In terms of non-market benefits and benefits to tourism marketability, these are enjoyed exclusively by NT households and the NT tourism industry. The national costs of Option 3 are set out in Table 4-7. The national benefits of Option 3 are set out in Table 4-8. www.nt.gov.au 40 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement National Impacts – COSTS Scheme design and Scheme operation and compliance enforcement NT Yes. Entirely – – – – Yes. Beverage companies nationally: the number of beverage Government Australian Government Beverage Industry companies located in each jurisdictions is as follows: 56 NSW; 47 Vic.; 29 SA; 10 Qld; 9 WA; 0 Tas.; 0 ACT; 1 NT; 1 USA; 0 NZ. Costs to jurisdictions will be proportional to the number of companies based there and the value of those companies’ sales in the NT. There are no NZ beverage companies that sell products in the NT. Retail Industry – – Waste – – – Yes. (Higher if beverage industry passes costs on through price Management Industry NT house holds increases.) exclusively National house – holds Nil (unless beverage industry passes costs on through price increases) November 2012 (including the NT) Table 4-7: National Impacts of Option 3: Costs www.nt.gov.au 41 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement National Impacts – BENEFITS Market Value Avoided Avoided Enhanced Non-market benefits of landfill litter conditions for Resources operating clean up tourism Shared with Shared – – NT Local with NT Gov Local Gov Yes. Shared Yes. – – with NT Gov Shared costs NT – Government NT Local – Government with NT Gov Australian – – – – – – – – – Government Beverage Industry Retail Industry – – – – – Waste Yes. Value of – – – – Management material sold – – Industry NT house – Yes. environmental holds National house and amenity benefit November 2012 – – – – – – – – Yes. Significant – holds (including the NT) NT Tourism industry economic gain from increased amenity. Table 4-8: National Impacts of Option 3: Benefits www.nt.gov.au 42 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement OPTION THREE – CONSULTATION QUESTIONS FOR STAKEHOLDERS Beverage Industry in all Australian and NZ Jurisdictions What do stakeholders from the beverage industry estimate the operation and compliance costs of a NT CDS to be (in the longer term, if the NT CDS is granted permanent exemption from the MRA and TTMRA)? please respond to the indicative costs supplied here; please provide your estimated costs and any evidence to support your assertions, including sales figures; please indicate costs over a 25 year period; please consider costs for the following: o reporting requirements and updating labels; o establishing industry-run organisations responsible for the operation of the scheme; and o operating costs. Please indicate any operation and compliance costs/issues not considered in this discussion of Option 3. Please also list benefits of the NT CDS flowing to stakeholders from the beverage November 2012 industry. What is the market value of recovered resources sold to date under the NT CDS? Please state the value of other benefits. To what extent are costs incurred by stakeholders from the beverage industry being passed onto consumers in the form of beverage price rises? If costs incurred by stakeholders from the beverage industry are being passed onto consumers in the form of price rises, are these being passed on to NT consumers alone or Australian consumers as a whole? If costs incurred by stakeholders from the beverage industry are being passed onto consumers in the form of price rises, what arguments have been considered www.nt.gov.au 43 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement favouring this course of action? Waste Management Industry and Collection Depots in the NT and other Jurisdictions What do stakeholders from waste management industry including collection depots estimate the impacts of a NT CDS to be (in the longer term, if the NT CDS is granted permanent exemption from the MRA and TTMRA)? please respond to the indicative costs supplied here; please provide your estimated costs and any evidence to support your assertions; and please indicate estimated costs over a 25 year period. In particular, please supply data around: capital investment in NT CDS infrastructure to date; future capital investment in NT CDS infrastructure; the market value of resources recovered to date under the NT CDS; and the value of unredeemed beverage containers collected to date. Local Government What do stakeholders from local governments estimate the impacts of a NT CDS to be (in the longer term, if the NT CDS is granted permanent exemption from the MRA and TTMRA)? November 2012 please respond to the indicative costs and benefits supplied here; please provide your estimated costs and benefits and any evidence to support your assertions; and please indicate estimated costs and benefits over a 25 year period. In particular, please supply data around: reductions in litter recovery costs; reductions in landfill costs; the operating cost of existing waste collection, transport and processing at material recycling facilities; the reduction in these costs since the NT CDS began operations; www.nt.gov.au 44 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement the market value of resources recovered from processing at existing recycling facilities; the overall viability of existing recycling facilities; and the viability of existing kerbside collection in Darwin and Palmerston. Households/Consumers in all Australian and NZ Jurisdictions What do households and consumers estimate the impacts of a NT CDS to be (in the longer term, if the NT CDS is granted permanent exemption from the MRA and TTMRA)? please respond to the indicative costs and benefits supplied here; please provide your estimated costs and benefits and any evidence to support your assertions; and please indicate estimated costs and benefits over a 25 year period. In particular, please supply data around: household participation costs; and environmental and amenity improvements. Tourism Industry in the NT, other Jurisdictions and NZ What do stakeholders from the tourism sector estimate the impacts of a NT CDS to be (in the longer term, if the NT CDS is granted permanent exemption from the MRA and TTMRA)? November 2012 please respond to the indicative costs and benefits supplied here; please provide your estimated costs and benefits and any evidence to support your assertions; and please indicate estimated costs and benefits over a 25 year period. In particular, please supply data around: value of a significant drop in litter to the tourism market. www.nt.gov.au 45 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 6.2.4. Option Four – Other less trade-restrictive approaches in the Northern Territory In assessing the regulatory impact of a number of options to achieve its objectives within the NT, the NTG considered a range of options. The conclusions the NT drew as to the suitability of these options is reviewed here. Litter Abatement Programs Litter abatement programs result in the costs associated with littering continuing to be borne largely by government rather than those responsible for producing or the dropping the litter. Community grants, financed by government and potentially industry groups would be the major mechanism to fund litter abatement programs. Education Campaign Education encourages behaviour change within the community. If implemented as a stand alone option, outcomes are uncertain and are likely to be less effective where waste management infrastructure is undeveloped. Any outcomes are not sustainable over time as experienced at the national level. This option is best viewed as a complementary approach – an important part of any new litter management scheme or regulatory approach, including a CDS. A new and reinvigorated education campaign would require additional government funds. Strategic Grants to Community, Industry & Local Government November 2012 This approach has been used to address waste and litter in the NT since 2003. While many projects have been funded, outcomes are unclear. Some localised success has been achieved, but it has not been able to deliver comprehensive and sustained outcomes across the NT. Extended Kerbside/Drop-off Service There is little doubt that extended or improved kerbside waste collection is of value in increasing recycling rates and in this context is an important component of a broader waste and recycling program for the NT. www.nt.gov.au 46 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement Currently kerbside recycling is available only to residents of Palmerston and Darwin councils. A limited number of waste disposal sites offer drop off facilities for recyclable products. A Kerbside/Drop off service could be extended to operate a Kerbside service in other major NT centres and new drop off services in regional areas. This option would increase resource recovery but doesn’t address away-from-home litter. It would not require new legislation; however, increased costs associated with this option have led to NT councils (beyond Darwin and Palmerston) being resistant to implement. Implementation would lead to additional costs for local government, business and residents, with full coverage of the NT unlikely. Improved Recycling - Public Places & Events This option involves targeting the volumes of beverage container waste in public places and at events. While it has potential to efficiently address litter volumes in specific concentrated areas it does not address broad scale littering across the NT and is unlikely to significantly reduce litter volumes. It does not provide an incentive to the community to recover litter. Improved Recycling - Workplaces Improved recycling opportunities within NT work places will address access to infrastructure however this option will have no impact on litter. This option does have a valid role in improving recycling opportunities in the NT. November 2012 Residual Waste Processing System Residual waste processing systems lead to increased recovery of packaging material, such as beverage containers, from mixed waste streams. They are valuable in commingled kerbside collection to maximise the recovery of potentially valuable resources. Acceleration of the introduction of mechanical and biological process plants to expand resource recovery would increase the recovery of inert material such as plastics, glass and metals (such as beverage containers). These measures involve considerable infrastructure and are suitable as a national measure, potentially using cost sharing arrangements. This technological approach has the potential to substantially increase the recovery rate for inert material from www.nt.gov.au 47 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement both commingled kerbside collection and from the general waste stream. However, this approach will have no impact on litter reduction. November 2012 www.nt.gov.au 48 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement OPTION FOUR – CONSULTATION QUESTIONS FOR STAKEHOLDERS Beverage Industry in all Australian and NZ Jurisdictions How do stakeholders from the beverage industry regard the alternative schemes discussed in this option? could any of the schemes provide a significant benefit? If so, at what cost, and to whom; please provide any estimated costs and any evidence to support your assertions; and if possible, please indicate costs over a 25 year period. Please describe any commendable schemes not considered in this option. Waste Management Industry and Collection Depots in the NT and other Jurisdictions How do stakeholders from the waste management industry including collection depots regard the alternative schemes discussed in this option? could any of the schemes provide a significant benefit? If so, at what cost, and to whom; please provide any estimated costs and any evidence to support your assertions; and November 2012 if possible, please indicate costs over a 25 year period. Please describe any commendable schemes not considered by this option. Local Government How do stakeholders from local government regard the alternative schemes discussed in this option? could any of the schemes provide a significant benefit? If so, at what cost, and to whom; please provide any estimated costs and any evidence to support your assertions; and www.nt.gov.au 49 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement if possible, please indicate costs over a 25 year period. Please describe any commendable schemes not considered in this option. Households/Consumers in all Australian and NZ Jurisdictions How do households and consumers regard the alternative schemes discussed in this option? could any of the schemes provide a significant benefit? If so, at what cost, and to whom; please provide any estimated costs and any evidence to support your assertions; and if possible, please indicate costs over a 25 year period. Please describe any commendable schemes not considered by this option. Tourism Industry in the NT, other Jurisdictions and NZ How do stakeholders from the tourism industry regard the alternative schemes discussed in this option? could any of the schemes provide a significant benefit? If so, at what cost, and to whom; please provide any estimated costs and any evidence to support your assertions; and if possible, please indicate costs over a 25 year period. November 2012 Please describe any commendable schemes not considered by this option. www.nt.gov.au 50 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement 7. REFERENCES 1 McGregor Tan Research September 2010. Container Deposit Legislation (CDL) Items from the 2009/10 KAB National Litter Count 2 ibid 3 ibid 4 ibid 5 ibid 6 Approximate estimate based on raw data in McGregor Tan Research September 2010. Container Deposit Legislation (CDL) Items from the 2009/10 KAB National Litter Count; and, NT Government 2011. Report for Environment, Heritage and the Arts Division. Department of Natural Resources, Environment, The Arts and Sport. Northern Territory Government Project No: 9149. p 5 and 55, unpublished and http://www.oceanwatch.org.au/seanet/seanet-programs-by-state/seanet-northern-territory/ Darwin Harbour clean up day 2011 7 Approximate estimate based on raw data in McGregor Tan Research September 2010. Container Deposit Legislation (CDL) Items from the 2009/10 KAB National Litter Count 8 Approximate estimate based on raw data in McGregor Tan Research September 2010. Container Deposit Legislation (CDL) Items from the 2009/10 KAB National Litter Count 9 Donnelly D and Buard M C 2011. Community Preferences for Litter Reduction, NEPC Service Corporation 10 ibid 11 Sustainability Victoria. Fact Sheet www.sustainability.vic.gov.au/resources/.../Info_19_-_Litter.doc 12 Donnelly D and Buard M C 2011. Community Preferences for Litter Reduction, NEPC Service Corporation 13 Tourism NT. http://www.tourismnt.com.au/research/trends-outlooks/economic-value-of-tourism.aspx 14 Wright Corporate Strategy July 2009. Preliminary Assessment of a Container Deposit Scheme Operation and November 2012 Costs Northern Territory. 15 Hyder Consulting Sep 2008. Australian Beverage Packaging Consumption, Recovery and Recycling Quantification Study, Packaging Stewardship Forum for the Australian Food and Grocery Council. 16 Northern Territory Government June 2012. Cash for Containers Quarterly Report, http://www.greeningnt.nt.gov.au/containers/quarterly_reports.html 17 Standing Council on Environment and Water 2011. Packaging Impacts Consultation Regulation Impact Statement. Canberra. http://www.scew.gov.au/publications/pubs/packaging-impacts/packaging-impacts- www.nt.gov.au 51 Northern Territory Container Deposit Scheme Mutual Recognition Act Consultation Regulation Impact Statement consultation-ris-december-2011.pdf 18 ibid 19 ibid 20 BDA Group and Wright Corporate Strategy March 2009. Beverage Container Investigation 21 Stefan Gabrynowicz, EPA SA April 2009. Economic Costs and Benefits of SA’s Container Deposit System The 4.25 cents/container is the depot handling fee estimate Gabrynowicz proposed. An estimated 4.66 cents/container was also proposed as all-up gross cost covering handling fee, admin, transport, supercollector costs. 22 Standing Council on Environment and Water 2011. Packaging Impacts Consultation Regulation Impact Statement. Canberra. http://www.scew.gov.au/publications/pubs/packaging-impacts/packaging-impactsconsultation-ris-december-2011.pdf p 53 23 Hyder Consulting Sep 2008. Australian Beverage Packaging Consumption, Recovery and Recycling Quantification Study, Packaging Stewardship, Forum for the Australian Food and Grocery Council 24 Sustainability Victoria Fact Sheet www.sustainability.vic.gov.au/resources/.../Info_19_-_Litter.doc 25 Donnelly D and Buard M C 2011. Community Preferences for Litter Reduction, NEPC Service Corporation 26 Ibid November 2012 www.nt.gov.au 52