Question details
Question on Notice
With reference to the Government’s Container Deposit Scheme, suppliers will pay 30 per cent more per container from February 2023.
Why is the cost of running the Container Deposit Scheme falling to suppliers, specifically small suppliers.
I thank the member for his question.
Victoria’s container deposit scheme (CDS Vic) is a mandatory product stewardship scheme, with first suppliers of beverages in eligible containers in Victoria required to pay a fixed price per container to fund the management, administration, and operation of the scheme. The cost of running return points and collection of containers is included in the scheme price as well as the 10-cent refund. CDS Vic is the most convenient and accessible scheme in the country, with over 640 return points.
CDS Vic operates on a partnership model. VicReturn is the scheme coordinator and is responsible for the administration and financial operation of the scheme including maintaining scheme liquidity and setting the scheme pricing. VicReturn is a not-for-profit organisation and as such does not make a profit on the scheme.
The average cost per container charged to suppliers is the lowest scheme price in Australia and was held at this level from the commencement of the scheme on 1 November 2023 for 15 months. The price is reviewed by VicReturn every 6 months to ensure that scheme liquidity is maintained.
VicReturn’s most recent price review identified that due to strong container return rates and lower than expected beverage supply volumes it was necessary to increase the price per container. The Victorian scheme has grown faster than any other state at the same point in time.
Steve Dimopoulos MP
Minister for Environment
