Container Deposit Scheme

The Hon. G.A. KANDELAARS (14:56): My question is to the Minister for Sustainability, Environment and Conservation. Will the minister update the chamber about measures undertaken in other jurisdictions to implement South Australia's container deposit scheme and how South Australia leads the nation in its efforts to recycle and reduce waste?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:56): How incredibly up-to-date the Hon. Mr Kandelaars is with what is happening interstate, and I thank him for his very important question. We have in South Australia many examples of world’s best practice when it comes to waste management and recycling. It's fantastic to see that our experiences are inspiring other jurisdictions to follow our lead, albeit it has taken them quite a few years to do so.

A perfect example of this situation is our own iconic container deposit legislation. South Australia introduced this groundbreaking legislation, I am advised, in 1977. It has been so widely adopted in our state that it was declared a heritage icon in 2006 by the National Trust in recognition of the role it has played in contributing to South Australia’s cultural identity. In 2008, we increased the refund from 5¢ to 10¢, and container return rates continue to increase strongly, I am advised, with an overall return rate of 78.46 percent in 2014-15, a 12 per cent increase compared to 2007-08.

The Northern Territory, of course, has already adopted a similar scheme after doing some battle with Coca-Cola Amatil, I think it was, and various other container manufacturers. I now welcome the news that New South Wales has modelled their scheme on our CDL, and it is set to come into effect in July 2017.

The CDL, of course, is not the only reform where South Australia has led the nation. We were also the first jurisdiction to ban lightweight plastic bags in 2007. Each of these reforms has not only helped South Australia become national leaders in waste management and recycling but also resulted in significant waste reduction.

For example, a 2014 report by the Commonwealth Scientific and Industrial Research Organisation into coastal marine debris in Australia found that the CDL had resulted in two-thirds less beverage container litter along the South Australian coast compared to other states. According to Keep South Australia Beautiful (November 2014), when compared to New South Wales, the Northern Territory, Queensland, Victoria and WA over the past seven years, South Australia has had the lowest percentage of beverage containers in its litter stream.

In 2012 it was estimated that the ban on plastic bags had resulted in a 45 per cent decrease in the percentage of lightweight plastic bags in South Australia’s litter stream. South Australia now has a recycling rate of 79.4 per cent, I am advised, amongst the world’s best and the highest per capita recycling rate in the country. But this activity has also had a significant economic impact on our state.

The CDL has been instrumental in engaging community groups and has generated significant employment in the recycling sector. For example, the scheme is credited with providing between 800 to 1,000 jobs in the beverage container collection and recycling industry in South Australia. During 2014-15, over $58 million was returned to South Australians for sporting clubs, community groups and charities, and the Scouts financially benefited from the scheme.

In addition, the waste management and resource recovery industry is a growing sector of our economy. It has an annual turnover of around $1 billion, I am advised, and contributes over $0.5  billion directly and through multiplying effects to gross state product, and employs almost 5,000 people directly and indirectly. Our experience has shown us the enormous value that such schemes can have for our state, not only in terms of litter reduction in our homes, in our parks and on the roads but as a very practical way for community groups and charities from the non-government sector to get involved and also benefit.

New South Wales and the Northern Territory are mirroring South Australia's container deposit legislation, and I understand the ACT has indicated that if New South Wales adopts such a scheme they are well disposed to do the same. Then it is only a matter of time before the rest of Australia follows suit. I would finally say that we worked very closely with our New South Wales government colleagues, both at an officer level and at a government level, to help them understand how our scheme worked and to give them the benefit of our long experience and advice. I am very pleased to say that we will continue to offer that experience and advice to any other jurisdiction that wants to be part of the future by adopting South Australia's 1977 CDL scheme.