Thursday, 28 October 2021

 Ms D’AMBROSIO (Mill Park—Minister for Energy, Environment and Climate Change, Minister for Solar Homes) (10:09): In accordance with the Charter of Human Rights and Responsibilities Act 2006 I table a statement of compatibility in relation to the Circular Economy (Waste Reduction and Recycling) Bill 2021.

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006 (the Charter), I make this statement of compatibility with respect to the Circular Economy (Waste Reduction and Recycling) Bill 2021 (the Bill).

In my opinion, the Bill, as introduced to the Legislative Assembly, is compatible with the human rights as set out in the Charter. I base my opinion on the reasons outlined in this statement.

Overview of the Bill

The Bill provides for the introduction of a circular economy in Victoria that maximises the continued use of products and waste material over their life cycle and accounts for their environmental impacts. In pursuit of this objective the Bill imposes requirements on local government to provide waste and recycling services, sets out minimum service standards, provides for the establishment of a container deposit scheme, and provides for information collection and enforcement measures.

Human rights issues

The Bill will promote the right to life (in section 9 of the Charter) and the right to equality (section 8) by establishing a circular economy in Victoria to promote intergenerational equality. Other human rights protected by the Charter are that are relevant to the Bill and discussed below are: the right to privacy and reputation (section 13(a)); the right to property (section 20); the right to a fair hearing (section 24); and the right to the presumption of innocence (section 25(1)).

Privacy

Section 13(a) of the Charter provides that a person has the right not to have their privacy, family, home or correspondence unlawfully or arbitrarily interfered with. An interference with privacy will be lawful if it is permitted by a law which is precise and appropriately circumscribed and will not be arbitrary provided it is reasonable in the circumstances and just and appropriate to the end sought. Section 13(b) provides that a person has the right not to have his or her reputation unlawfully attacked.

Head RV’s powers to hold inquiries

The Bill provides for there to be a Head of Recycling Victoria (Head RV), a new business unit within the Department of Environment, Land, Water and Planning, with functions including to administer the container deposit scheme and to provide overall leadership, stewardship and oversight of waste, recycling and resource recovery services and to support the development of the circular economy in Victoria (clauses 15 and 16). The Head RV has power to hold inquiries for determining any matter relevant to their functions, duties or powers, or the operation of the Bill (clause 16). The Head RV may hold a hearing or part of a hearing in public, or in private if the Head RV considers it in the public interest for the protection of confidential or commercially-sensitive information (clauses 30–32). The right to privacy is relevant, insofar as persons may be required to appear before or give information to public inquiries. However, the right will not be interfered with. The Head RV has discretion to hold inquiries in private to protect confidential information, which could include sensitive information about a person. Inquiries will be held for the important purpose of inquiring into matters relevant to the regulatory scheme the Bill introduces.

Various data collection, sharing, reporting powers

The Bill introduces a regulatory scheme that requires reporting, by ‘regular’ and ‘occasional’ reporting entities (Part 3) to the Head RV. The collection and retention of prescribed information is compulsory for such entities. Under the Bill, the Head RV also has a range of information collection, retention, sharing and disclosure powers (clauses 38–43, 50-55), to perform their powers and functions under the Bill. The Head RV may issue notices requiring a person providing a recycling and resource recovery service to provide certain information or documents, or class thereof (clauses 39–42). Relevantly, the Head RV may establish a centralised data repository and cause to publish information and reports relating to waste and resource recovery services (clauses 50–54).

These powers will predominantly concern the reporting of information by councils, alpine resort management boards and a range of service deliverers, for the purpose of administering the regulatory scheme introduced by the Bill and assessing compliance. It is my view that any application of these powers to compel the provision of personal information so as to engage the right to privacy is minimal, and would only concern persons who have sought to participate in this service provision and their business affairs. To the extent that any personal information is collection, provision is made for confidential information to be excluded from published reports, and unauthorised disclosure of confidential information obtained during exercise of powers under the Bill will be an offence (clause 55). I consider any interference with privacy as a result of data collection, sharing and reporting powers under the Bill to be proportionate to the regulatory aims of the overall scheme.

‘Fit and proper person’ tests

The Bill provides power to the Minister to invite persons to enter into Scheme Coordinator agreements, and to enter into such agreements with persons if the Minister relevant considers them to have appropriate expertise and to be a ‘fit and proper’ person (clause 80). These agreements will govern the supply, network and cost recovery arrangements of the container deposit scheme. This test also applies for persons who seek to enter into network operator agreements (clause 89) to administer the establishment and operation of collection points for the container deposit scheme. For the Minister to satisfy themselves that relevant persons are ‘fit and proper’, the Minister may require the provision of personal information by applicants who are natural persons, such as criminal history, financial records and probity checks. To the extent that this may interfere with the privacy rights of such applicants, I consider it to be not arbitrary, in that there is a legitimate and important purpose in ensuring that only fit and proper persons hold these positions. The effectiveness of the scheme will depend upon the proper performance of these roles, and there is a critical need to protect against the risk of any improper, negligent, or fraudulent conduct occurring.

Requirement for identification to seek refund

The Bill relevantly provides for a container deposit scheme, where persons can seek refunds for eligible containers from collection point operators. Collection point operators must not pay refunds for eligible containers unless persons provides prescribed information and proof of identification if they seek refunds for more than a prescribed number of containers (clause 108). This power to compel identification for persons to gain the benefit of the container deposit scheme may interfere with such person’s right to privacy. However, the requirement is for the important purpose of regulating the stockpiling of eligible containers and mitigating against fraud in an industry where traceability is low. As such, the requirement is reasonable in the circumstances and not arbitrary.

Adverse publicity orders

If a court finds a person guilty of an offence under the Bill or regulations, the court may make orders requiring the person to either publicise the penalty imposed and any other related matter in the order, or notify a specified person of class of person of the penalty (Division 8 of Part 7). Such powers will engage the right to privacy, as it interferes with a person’s reputation by making the commission of an offence known to a specific group of people or to the general public. It also engages the right to freedom of expression in section 15 of the Charter, in that it compels a person to impart information. However, the order only compels the disclosure or publication of information which would already be on the public record as a consequence of judicial proceedings held in open court. In these circumstances, the adverse publicity order does not disclose information that is private but instead requires information that is in the public domain to be communicated in a different form. Adverse publicity orders seek to promote accountability by preventing a person from concealing that they have been convicted of offences and required to pay penalties under the Bill, and ensuring that consumers and/or industry participants are aware of relevant matters when deciding whether to engage services from a particular service provider.

The offences targeted by these orders include offences involving dishonesty, disruption or risk to human health in the context of waste and recycling services. As these are vital and essential services, the proper and effective regulation can be considered a matter of public order (which in the context of the right to freedom of expression, is a permitted internal limitation). As adverse publicity orders seek to achieve the deterrent and denunciatory aims of sentencing, as well as furthering the protection of users of recycling and waste services by publicly naming those who contravene regulations and strengthening the integrity of the regulatory system, it can be concluded that these orders are not arbitrary and thus do not limit the right to privacy.

Authorised officers’ powers of entry, search and seizure

The Bill gives power to authorised officers to enter a place or premises and inspect, take samples, carry out testing, document, bring equipment or material to the place or premises and to seize documents and things in certain circumstances (Division 12 of Part 7).

These powers may interfere with the right to privacy by permitting authorised officers to enter premises, except residential premises which requires consent or a warrant, and exercise a range of powers to gather and document information. However, the powers are subject to safeguards that limit the scope for their arbitrarily exercise. Authorised officers may only exercise powers to enter premises and seize property for the purposes of performing a function or duty or exercising a power under the Bill. Authorised officers may only enter places or premises at reasonable times (unless in circumstances of certain immediate risks), take reasonable steps to announce or give notice of their entry, and must not remain on premises any longer than reasonably necessary.

The Bill also permits the search of premises if authorised by a search warrant (Division 13 of Part 7). Such provisions are considered compatible with privacy on the basis that such searches can only occur with prior authorisation in the form of a valid warrant issued by a judicial officer, and require the existence of reasonably grounds that an offence has been committed and that there is evidence to be found at the place of the search.

Authorised officers’ powers to compel information

Upon entry to a place or premises, authorised officers have powers to compel persons to produce documents or require information or answers (Divisions 12 and 13 of Part 7). Non-compliance without reasonable excuse is an offence. Such powers engage the privacy right. However, any interference will be lawful and not arbitrary. Authorised officers must only request documents located at premises, and only for the purpose of performing a function or duty or exercising a power under the Bill. Officers may only require answers from a person the officer reasonably believes to have knowledge of a matter or thing relevant to another person’s compliance with the Bill. Such information, by nature of the context of the entry to premises, will relate to waste and recycling services and unlikely to involve information relating to personal affairs. Further any information acquired by officers is subject to the confidentiality requirements which places limits on the use and disclosure of such information.

I therefore consider that if the powers authorise interference with the right to privacy, that interference will be lawful and not arbitrary. To the extent that it is relevant, I also consider that any limit on the right to privacy would be reasonable and justifiable in accordance with section 7(2) of the Charter, being necessary to monitor conduct concerning the provision of essential services, and undertake investigations to ensure non-compliance is detected and deterred.

Property

Section 20 provides that a person must not be deprived of their property other than in accordance with law. Any power which authorises the deprivation of property must be conferred by a law, confined and structured, formulated precisely, and accessible to the public to allow people to regulate their own conduct.

Authorised officers’ powers of entry, search and seizure

As set out above, the Bill gives power to authorised officers to enter a place or premises and a range of powers upon entry (Divisions 12 and 13 of Part 7). Relevantly, authorised officers may carry out testing of examination of things that results in the destruction of the thing. Exercise of these powers may interfere with persons’ enjoyment of premises or deprive them of property seized, engaging the right to property. However, any interference will be authorised by legislation and governed by a clear and accessible process. As above, residential premises can only be entered with consent or by a warrant. Authorised officers may only exercise powers to enter premises and seize property for the purposes of performing a function or duty or exercising a power under the Bill. Further to the reasons described above, authorised officers may only seize and remove a thing connected with a suspected contravention of the Bill or regulations. The Bill also provides for the return of seized things as soon as possible, unless certain circumstances exist (Division 14 of Part 7). As such, I consider that the right to property is not limited by these provisions.

Fair hearing

Section 24(1) of the Charter provides that a person charged with a criminal offence or a party to a civil proceeding has the right to have the charge or proceeding decided by a competent, independent and impartial court or tribunal after a fair and public hearing.

Victorian Civil and Administrative Tribunal review

The Bill provides for review of certain decisions set out in Part 8 of the Bill. While the provision set out the review rights to particular reviewable decisions set out in that Part, I consider that the right to a fair hearing will not be limited, as an eligible person may still have the decision reviewed by Victorian Civil and Administrative Tribunal (VCAT) on the grounds set out in Part 8 of the Bill, or may seek judicial review of the decision. Therefore these persons still has access to VCAT and the courts.

Presumption of innocence (section 25(1))

Section 25(1) of the Charter provides that a person charged with a criminal offence has the right to be presumed innocent until proved guilty according to law. The right is relevant where a statutory provision shifts the burden of proof onto an accused in a criminal proceeding, so that the accused is required to prove matters to establish, or raise evidence to suggest, that they are not guilty of an offence.

‘Reasonable excuse’ offence provisions

The Bill introduces a number of new offence provisions that contain ‘reverse onus’ elements (for instance, clauses 28, 39, 41, 42, 49, 69, 71, 73, 86 (civil penalty only), 95 (civil penalty only), 100, 102, 105, 106, 114, 115, 116, 117, 126, 128, 153, 162, and 163). By creating ‘reasonable excuse’ exceptions, the offences in the Bill may be viewed as placing an evidential burden on the accused, in that it requires the accused to raise evidence as to a reasonable excuse. However, in doing so, this offence does not transfer the legal burden of proof. Once the accused has pointed to evidence of a reasonable excuse, which will ordinarily be peculiarly within their knowledge, the burden shifts back to the prosecution who must prove the essential elements of the offence. I do not consider that an evidential onus such as this limits the right to be presumed innocent, and courts in other jurisdictions have taken this approach.

Accessorial liability of officers of body corporate for offences

The Bill also extends liability for certain offences committed by a body corporate or Council to the officers of that body corporate or Council, in certain circumstances. Including where the officer authorised or permitted the commission of the offence by the body corporate or Council, or was knowingly concerned in any way in the commission of the relevant offence (clause 177). This provision is relevant to the presumption of innocence as it may operate to deem as ‘fact’ that an individual has committed an offence based on the actions of another body, based on their association with that body. However, it is my view that the right is not limited in this context.

Clause 177 provides that the relevant person only deemed to commit the offence committed by the other body if the person authorised or permitted the commission of the offence or was knowingly concerned in any way (whether by act or omission) in the commission of the offence. In my view, these provisions do not limit the presumption of innocence as the prosecution is still required to prove the accessorial elements of the offence - that is, that the relevant person authorised or was knowingly concerned with the commission of the offence, or failed to exercise the necessary due diligence to prevent the offending.

In the event that this provision is considered a limit, I am of the view that any limitation is reasonably justified. As with any regulated industry concerning essential services to the public, there is a strong need to ensure adequate deterrence of regulatory offences that may cause harm to industry participants or the public at large. Courts in other jurisdictions have held that the presumption of innocence may be subject to reasonable limits in the context of regulatory compliance. These provisions only target persons who have elected to undertake a position as an officer of a body corporate or Council, which includes assuming the responsibilities and duties that apply to these roles, and who have the capacity to influence the conduct of the entity concerned.

The provisions ensure such persons are appropriately held responsible for all breaches that occur by or on behalf of the entity in which they have responsibility for, enabling offences to be successfully prosecuted and operate as an effective deterrent. Affected persons should be well aware of the regulatory requirements and, as such, should have the necessary processes and systems in place to effectively meet these requirements and not incur accessorial liability. In my view, there is no less restrictive way of ensuring accountability of officers of bodies corporate or Councils for breaches of the Bill, and it follows that these provisions are compatible with the Charter.

The Hon Lily D’Ambrosio MP

Minister for Energy, Environment and Climate Change

 Ms D’AMBROSIO (Mill Park—Minister for Energy, Environment and Climate Change, Minister for Solar Homes) (10:10): I move:

That this bill be now read a second time.

I ask that my second-reading speech be incorporated into Hansard.

Incorporated speech as follows:

The Circular Economy (Waste Reduction and Recycling) Bill is a central part of the Victorian Government’s once-in-a-generation reform of Victoria’s waste and recycling system, to make it more effective, accountable and consistent with community expectations. It lays the foundation for the state’s transition to a circular economy; a transition which will support the creation of more than 3,900 jobs, deliver on our climate change targets and ensure Victorians have a recycling system they can rely on.

Background to the Bill

Victoria’s waste and recycling services suffered severe disruptions in 2019 following the China Sword policy announcement and collapse of SKM Recycling. These events showed how exposed Victoria’s recycling system was to changes in global recycling markets and the consequential impact on local recycling service delivery. The collapse of SKM Recycling left 33 councils without kerbside recycling services, with many having no choice but to send recyclable material to landfill. The Victorian Government worked in partnership with councils and the recycling industry to minimise disruption to households, providing a $6.6 million relief package to affected councils to help reduce financial pressure on councils and impacts on households. These events made clear that there was a need to overhaul our waste and recycling system.

In February 2020, after extensive public consultation, the Victorian Government released Recycling Victoria: A new economy, the Victorian Government’s policy and action plan to transition Victoria to a circular economy and reform our waste and recycling system over the next decade. This Bill gives effect to a key commitment of Recycling Victoria: A new economy to establish a legislative framework to:

• ensure waste and recycling services are reliable, consistent and meet community expectations by introducing an obligation on councils to provide waste and recycling services, and for councils and industry to comply with service standards

• introduce a container deposit scheme with the Head providing direction and oversight in the role of scheme regulator

• provide a range of support to councils in procurement and contracting of waste and recycling services

• require improved data collection from entities in the waste and recycling sector to provide transparency and accountability for what happens to our waste

• undertake inquiries into specific or general parts of the waste and recycling sector to better understand market issues and to recommend appropriate action

• encourage and enforce compliance with new requirements through graduated and proportionate enforcement powers.

To date, the take-make-use-dispose approach of a linear economy has not served us well. A circular economy aspires to eliminate waste and generate more value from our natural resources. It improves how we design, manage, reuse and recycle products and materials. In addition to economic benefits, a circular economy promotes positive social and environmental outcomes. It helps to support jobs across Victoria and delivers real action on climate change. An effective circular economy requires a world class recycling system. Victoria needs a reliable, transparent, consistent and accountable waste and recycling sector. This Bill will introduce the necessary oversight and obligations to make that happen.

Overview of the Bill

This Bill is part of a series of coordinated measures that will support Victoria’s transition to a circular economy, provide stability and leadership to the waste and resource recovery sector, and meet community needs and expectations.

This Bill includes the creation of a regulator to oversee and provide strategic leadership for the waste and recycling sector; reforms to household waste and recycling; provision for service standards to ensure consistency and transparency in how waste and recycling are collected, managed and disposed of; the introduction of a container deposit scheme, establishment of a framework for data collection to identify risks and opportunities in the market and inform responses; and creation of offences and other mechanisms to enforce compliance by councils and waste and recycling sector entities with their legislative obligations.

The Victorian Government continues to develop additional reforms that may require further legislative change, including enhanced statewide infrastructure planning, and a cap on thermal waste to energy processing in Victoria.

As provided for in Part 1 of the Bill, the Bill will become fully operational by 1 December 2023. However, it is intended that the new regulator—Recycling Victoria—will be established by mid-2022 with supporting regulations and other subordinate instruments to follow after consultation with local government, industry and community.

Head, Recycling Victoria

Part 2 of the Bill establishes the position of the Head of Recycling Victoria and sets out their powers and functions. The Head’s role will be to oversee the waste, recycling and resource recovery sector and to support the development of a circular economy. The Head will lead Recycling Victoria, which will be established as a business unit within the Department of Environment, Land, Water and Planning. The Head and his or her staff will be employed under Part 3 of the Public Administration Act 2004.

The establishment of Recycling Victoria will clarify and streamline the role of state government agencies and improve system-wide leadership and oversight of the waste and recycling sector. This will address the findings of several reviews that have noted these weaknesses in the current Victorian system. Under the current arrangements, seven Waste and Resource Recovery Groups (WRRG) co-ordinate and facilitate the delivery of waste and recycling across their regions. Each WRRG has its own board, its own staff and its own approach to working with local councils and businesses in its region. Many waste and recycling businesses and local councils have struggled to understand the different roles and responsibilities of the WRRGs and other government agencies. In addition, the global and multi-faceted challenges facing the waste and recycling sector require a streamlined and integrated approach, with a strong focus on market stabilisation and state-wide policy goals. Accordingly, the WRRGs will be wound up through an amendment to the Environment Protection Act 2017.

In establishing Recycling Victoria and winding up the WRRGs, I want to stress that the Bill provides for the transfer of employment of all WRRG staff. This transfer means the new regulator will retain the regional presence, experience and expertise of those staff. The Head will be a statewide regulator with a regional focus and will work alongside local governments and within regional communities, and will be able to work within the existing regional offices of DELWP to ensure a continued regional presence.

Functions and Powers

Part 2 of the Bill sets out the functions and powers of the Head which enable and empower the Head to oversee, and anticipate and mitigate risks to, the stability of local waste and recycling markets. These include to:

•   provide leadership, stewardship and oversight of the new Container Deposit Scheme

•   develop and implement strategies and plans to foster sustainable, resilient and effective markets within a circular economy.

•   identify, monitor, manage and mitigate risks in the waste and recycling sector

•   oversee and build capacity for municipal waste and recycling service delivery, through supporting local government in the development and management of their procurement, and facilitating strategic procurement for groups of councils

•   enforce service standards for quality and performance of waste or recycling services

•   collect, manage and publish information and data

•   carry out inquiries on the Head’s own initiative and as directed by the Minister, and

•   monitor and enforce compliance with the requirements under this Bill.

These powers and functions are designed to ensure Recycling Victoria is empowered to carry out its regulatory oversight role while remaining flexible, adaptive and responsive to government priorities and emerging markets, innovations and risks.

Mandatory Reporting Requirements

In 2019, the Victorian Auditor-General found that Victorian waste data is incomplete, inaccurate and unreliable. High-quality data is needed to understand the flow of materials through the system and identify market risks and opportunities. Better data would enable all levels of government and the industry to better predict, plan for and respond to many of the issues identified in the waste sector.

The current legislative framework does not provide the Victorian Government and the sector with the tools they need to successfully identify issues and intervene to address market failures in the waste and recycling system. In the absence of these tools, the Victorian Government has had to reactively step in to stabilise the market and provide support.

There is currently no requirement to track or monitor the flow of materials segregated for recycling after these are sent to recovery or reprocessing facilities. Councils and waste reprocessing operators provide data voluntarily, but it is incomplete, its reliability varies, and there is no process to ensure that data collection is standardised and verified.

This Bill establishes a data collection and reporting framework, which is set out in Part 3 of the Bill. The Head will be empowered to establish and manage a centralised data and information system. Regular, periodic mandatory data collection will be required from councils and other key industry participants in the sector such as waste storage facilities and material recovery facilities. The Head will also have the power to request information on an ad hoc basis from a broader group of entities where this is useful for the Head to gain a full picture of the state, stability and operation of the waste and recycling sector. This category of “occasional reporting entities” will be prescribed by regulations and subject to consultation. It may, for example, include certain participants in the Container Deposit Scheme (CDS).

This proposed regime will enable the Head to gather and publish information from industry participants to improve oversight of the waste and recycling market and anticipate and responding to market issues. Better and more comprehensive data will also enhance community confidence in the sector in being able to report how much material is being recycled and where it ends up. Data collection and reporting will improve transparency and accountability of the market to lift performance. It will also inform government policy, programs and evaluation, including understanding what outcomes are being achieved for the Victorian community.

Household Municipal Waste and Recycling Services and Mandatory Business Sorting

The Bill will create a legislative obligation on councils and alpine resort management boards to provide households in their local area with municipal solid waste and recycling services. This obligation is contained in Part 5 of the Bill.

Consistent with the Victorian Government’s kerbside reforms in Recycling Victoria, services will be defined as, at a minimum, four waste streams—food and garden organics, glass, comingled recyclables and residual waste. This legislative clarity is an important prerequisite for establishing state-wide consistency and standards for these services. Exceptions and exemptions will provide flexibility for alternatives to kerbside collection (for example, neighborhood drop off points and home composting) where appropriate. The intent is to support equitable access to best practice recycling across a diversity of home dwellings in metropolitan, rural and regional Victoria. The obligation on councils will also provide for exemptions to support the existing context of service delivery across local government areas, such as where owners’ corporations provide services in some multi-unit developments.

These reforms will be implemented gradually, with the Victorian Government supporting the rollout of new services from 2021. It is expected that all Victorians will have a new glass service by the end of 2027 and food and garden organics service by the end of 2030.

These obligations will substantially improve the value of materials Victorians recycle, including paper and glass. It will divert a large amount of waste from landfill. Giving all Victorian households access to a combined food and garden waste services will divert up to 650,000 tonnes of organic waste from landfill each year and significantly reduce greenhouse gas emissions associated with disposing of organic waste in landfill. These measures deliver on the Victorian Government’s commitment in its waste sector pledge, issued under the Climate Change Act 2017, to improve ways households and communities recycle and manage their waste through the rollout of a four-bin kerbside waste system and by lifting the performance of our waste and recycling sector to support more effective sorting of recyclables.

Consistent with the Victorian Government’s reforms in Recycling Victoria, this Bill includes a head of power for new regulations to be developed requiring mandatory sorting by businesses by 2025, to separate recyclable and organic material from unrecoverable wastes. This will provide greater consistency in services for the public, increase the quality of material collected from businesses and divert waste from landfill. These requirements will be developed in consultation with businesses and the community.

Service Standards for the Waste, Recycling and Resource Recovery Sector

Part 5 of the Bill will empower the Minister to set standards that councils and industry participants must comply with. Standards will be a key regulatory lever to ensure that all Victorians receive consistent services that meet community expectations, to set performance requirements for councils and key industry players, and ensure optimum sorting across households and facilities, driving Victoria’s circular economy.

The Bill will enable standards to be set and enforced for all providers of waste, recycling or resource recovery services and for all waste streams (municipal solid waste, commercial and industrial waste and construction and demolition waste). Initial standards are expected to focus on how the four service streams are to be delivered by councils and alpine resort management boards and will be made through subordinate legislation following consultation with industry and councils. Further standards for other waste streams will be developed subsequently, in consultation with industry.

Container Deposit Scheme

Part 6 of the Bill establishes Victoria’s CDS. The scheme will prioritise community convenience to promote high consumer participation and container return rates. It will improve recycling, reduce Victoria’s litter by up to half and create a clean, valuable stream of materials for recycling and use in local manufacturing. Our scheme is a win for the environment and for all Victorians.

Analysis of other schemes across Australia and overseas shows that the cash incentive together with an easy, accessible, and convenient network of collection points are critical to success.

To deliver on these criteria and ensure accountability and transparency, the Bill introduces a split responsibilities governance model for Victoria’s CDS. A single scheme coordinator will manage the administrative and financial elements of the scheme and will be incentivised to manage the scheme as efficiently as possible to keep costs down.

Network operators will manage the beverage container collection infrastructure. Network operators will be paid on a per-container-collected basis, creating a direct market incentive for network operators to collect as many containers as possible. This model promotes the establishment and maintenance of a convenient, accessible, and reliable network of collection points across Victoria.

Victoria’s CDS will create a high-quality and high-value stream of material for reuse and remanufacturing. The materials that are collected from our scheme offer greater opportunities to turn empty containers into new products right here in Victoria.

Community groups, charities and sports groups will be able to benefit from Victoria’s CDS. These groups can fundraise through the scheme by initiating collection drives or operating a container collection point as a commercial operation. Additionally, our scheme will make it easy for Victorians to donate their 10-cent refund to their preferred charity or community group, further supporting these important organisations.

The CDS will deliver shared benefits for the community, our environment and Victoria’s economy, including economic development for regional Victoria and employment opportunities for disadvantaged groups.

While it may be tempting to focus only on the many benefits the container deposit scheme will bring for all Victorians, we must also acknowledge a related problem we are setting out to solve.

Litter and pollution harm our health, our wildlife, and our environment. In Victoria we know that beverage container litter makes up almost half of all litter. It is a significant problem that requires a considered and strategic solution. Victoria’s CDS provides a financial incentive for Victorians to prevent litter and be rewarded for recycling. As more containers are returned, there will be less litter and waste in the environment and more money in the pockets of those who participate in the CDS.

In accordance with the principle of product stewardship, Victoria’s CDS will be funded by the beverage industry. Beverage suppliers deemed to be ‘first suppliers’ in the Victorian market under Part 6 Division 6 of the Bill will be required to pay into the scheme via an in-arears payment model. During consultation the beverage industry indicated it strongly prefers this model over an in-advance payment model and it is an approach consistent with most Australian schemes. This payment model means the scheme coordinator needs a large ‘float’ to cover scheme costs for the first few months of operation, ensuring there is sufficient funding available for refunds in the early days of the scheme, until beverage supplier payments are flowing smoothly.

The Victorian Government will provide a loan to the scheme coordinator, as this will minimise financial pressure on industry and particularly on small beverage companies, many of which have been significantly impacted by the effects of the pandemic.

Other scheme design choices, such as refund amount and eligible containers, will align with other Australian schemes for harmonisation across the states, keeping things simple for consumers, as well as reducing compliance costs and regulatory burden for beverage suppliers operating across multiple jurisdictions.

Compliance and Enforcement

Part 7 of the Bill gives the Head a range of powers and tools to adequately discharge his or her regulatory activities. These powers and tools are essential for Recycling Victoria to be a credible and effective regulator; drive industry accountability; deliver tailored and proportionate regulatory responses; and intervene to respond to risk and deliver government’s objectives.

Recycling Victoria will coordinate and work with other government entities including the Environment Protection Authority (EPA), Sustainability Victoria and councils. These entities have differing, but complementary, roles to Recycling Victoria. It will oversee the performance of the waste and recycling sector, and have a transparency, market stability and longer-term circular economy focus, while the EPA will continue with its mandate to protect the environment and people by preventing and reducing harm from pollution and waste.

The Head’s enforcement powers include an ability to carry out audits; issue improvement and prohibition notices; accept enforceable undertakings; prosecute and issue penalty notices for relevant offences; and publish outcomes of audits and compliance with standards.

Engagement with Local Government, Industry and Regional Communities

This Bill is a significant reform that will affect every household in Victoria, as well as each council and alpine resort management board and the broader waste, recycling and resource recovery sector. The input and collaboration of these sectors is critical to the successful and smooth implementation of the Bill. Accordingly, the Bill includes a number of mechanisms to ensure effective engagement.

The Head will be required to prepare and publish a Charter of Engagement and a supporting and more detailed engagement strategy setting out how the Head intends to consult and engage with councils, industry, regional communities and traditional owners.

The Bill also provides for the Minister to establish advisory committees, including a minimum of one standing committee with members that have regional and local government experience. This will give a voice to a range of stakeholders across Victoria, including industry, community groups and traditional owners. This standing committee will consider and report on regional issues as a priority.

The ongoing advice of the standing committee will complement the role of Recycling Victoria, which will be closely engaged with regional industry and councils and will maintain a regional presence.

In addition, I intend to establish a local government advisory committee to advise the Head on the new functions, how these arrangements impact and can benefit councils, and how the set up of Recycling Victoria can ensure effective relationships with local governments across the State.

The Minister is also able to establish ad hoc committees to address specific issues or engage with particular sectors or communities on matters that affect them. In this way, the Minister and Head will be able to draw upon the expertise and experience of regional communities, councils and industry to inform the administration of the legislation.

Conclusion

The Victorian Government has committed to pursuing an ambitious waste and recycling agenda. This is a major transformational reform, built on community and industry consultation over a number of years.

This Bill delivers a comprehensive, consistent and enforceable approach to oversee and support the delivery of waste, recycling and resource recovery services across Victoria. This will give confidence and clarity to householders that their efforts to sort and recycle will minimise waste and maximise resource recovery. This Bill lays the foundation for a stronger and more resilient recycling system and for Victoria to transition to a circular economy which will support thousands of Victorian jobs while protecting the environment.

I commend the Bill to the house.

 Mr ROWSWELL (Sandringham) (10:10): I move:

That the debate now be adjourned.

Motion agreed to and debate adjourned.

Ordered that debate be adjourned for two weeks. Debate adjourned until Thursday, 11 November.