Container Deposit Scheme: another tax grab from ACT Labor

The Canberra Liberals have today voted against legislation aimed at introducing a Container Deposit Scheme to the ACT. The CDS will ultimately lump Canberra consumers and small businesses with significant upfront costs with little reward, Shadow Minister for Local Business Andrew Wall said.

“This scheme is a tax on beverages, paid for by consumers, with the administrative costs absorbed by small businesses, largely benefiting the Government,” Mr Wall said.

“Small local beverage companies such as craft brewers will feel the impact of this scheme. For a local craft brewer to enter the CDS, it would be looking at an upfront cost that could run into the hundreds of thousands of dollars – this is before its product even hits the shelves.

“Based on current recycling figures, this scheme would deliver an $8 million profit split between an operator of the Materials Recovery Facility and the Labor Government. That is a massive cash grab ultimately funded by small businesses and Canberra beer drinkers.

“There is also too much doubt around whether the incentive of a 10 cent refund per container would actually change the recycling habits of Canberrans.

“The Labor-Greens Government has an insatiable appetite for more taxes and more red tape; this time it comes under the banner of environmentalism.

“In reality, the biggest beneficiary of this scheme is the Labor Government, not the environment,” Mr Wall concluded.