Legislative Council Fifty-First Parliament, Second Session (51-2) 51 2 Parliament of South Australia Legislative Council published Ministerial Statement Container Deposit Legislation CONTAINER DEPOSIT LEGISLATION The Hon. G.E. GAGO Legislative Council Minister for Environment and Conservation Minister for Mental Health and Substance Abuse Minister Assisting the Minister for Health The Hon. G.E. GAGO (Minister for Environment and Conservation, Minister for Mental Health and Substance Abuse, Minister Assisting the Minister for Health) (15:36): I seek leave to make a ministerial statement. Leave granted. The Hon. G.E. GAGO Legislative Council Minister for Environment and Conservation Minister for Mental Health and Substance Abuse Minister Assisting the Minister for Health The Hon. G.E. GAGO (Minister for Environment and Conservation, Minister for Mental Health and Substance Abuse, Minister Assisting the Minister for Health) (15:36): I am pleased to advise the council that the government has decided to increase the deposit on beverage containers to 10¢, and it is intended that this increase take effect later this year. CDL has been very popular in South Australia and has successfully altered our littering and recycling habits as a community since its introduction in 1977. South Australians can be justly proud of this scheme. We lead the nation and, in this time of renewed focus on the environment and minimising our footprint, the rest of the country is looking at our law and considering adopting it. Western Australia is fairly advanced in its consideration of a similar scheme and, more recently, Tasmania and the Northern Territory have also expressed interest in beverage container deposits. CDL has contributed to South Australia's having recovery rates of beverage containers well above the national average (such as a glass recovery rate greater than 80 per cent compared with about 36 per cent nationally, and a PET recovery rate of about 66 per cent compared with 35 per cent nationally). Of concern, however, is the data demonstrating that return rates are now showing a decline. The overall rate of return of glass, aluminium and PET (plastic containers) peaked at around 84 per cent in 2002 but has since declined to about 70 per cent, with an overall return rate in 2005-06 dropping to 69.5 per cent. Given that the deposit, if it had been indexed since it was first introduced, would now be just over 30¢, it is reasonable to question whether the deposit is starting to lose its incentive value. In order to encourage a recovery in return rates, the government therefore has determined that the deposit be increased to 10¢. CDL already provides a wide range of environmental, economic and social benefits to the state and, with an increase in the refund level, we can expect: an increase in the return rate of beverage containers, resulting in increased recycling and reuse of the material; reduced waste management costs—including litter cleanup—for local government, which in turn should reduce pressure on council rates; reduced glass contamination of other recycled products in kerbside collections due to higher return rates at collection depots; a decrease in the number of beverage containers going to landfill or appearing in our litter stream; an increase in revenue for charity and community groups and individual collectors; above all, an increase in returns of these products will result in the environmental rewards of the system being increased. Based on life-cycle assessments of CDL that have been undertaken within Australia, it is estimated that the South Australian system currently generates the following environmental benefits: Annual emissions of greenhouse gases reduced by about 50,000 to 70,000 tonnes of CO₂ equivalents, which is equivalent to 7,000 to 10,000 homes taking up 100 per cent renewable energy or about 15,000 cars being taken off the roads permanently—so a significant environmental benefit. Annual emissions of smog precursors reduced by 40 to 50 tonnes, which is equivalent to taking 10,000 cars permanently off the road. Embodied water use reduced by about four to five megalitres (which is about four to five Olympic swimming pools per annum). Embodied energy savings of one to 1.2 petajoules per annum. The government is committed to getting the maximum environmental benefits possible from our recycling systems in South Australia in order to be an efficient low waste, sustainable society.