A LOCAL businessman has slammed the cash for containers scheme as not worth the paper it’s written on.
Frank Gregory (pictured), of Barkly Metal Traders, would like to set a blowtorch to the Container deposit legislation which was introduced last month into the NT as part of the Environment Protection (Beverage Containers and Plastic Bags) Act 2011.
Mr Gregory, whose company is only one of two collection depots in the entire Barkly region, said the returns scheme has made a mockery of both consumers and small businesses like his.
“It has cost me more than $40,000 to get this depot up and running and so far I haven’t got one cent back,” he said.
“I don’t know how long I will be able to keep on going at this rate. I’ve already had to put workers on hold because there’s no money coming in.”
Under the cash for containers scheme, people can put 10 cents back in their pockets if they return clean cans, bottles and cartons to designated collection depots.
The move, based on a similar program that has run in South Australia for many years, was designed to promote recycling and reduce rubbish going to landfill by 50 per cent.
However, according to Mr Gregory, the Territory Government has failed to put enough thought into the operation of the scheme which has enabled price gouging.
“For some reason the NT Government has approved five companies to be coordinators and they, in turn, have done deals with various manufacturers,” Mr Gregory said.
“However, it has been left up to depots like mine to do deals with the coordinators and so far I have only been able to successfully negotiate with two of these companies.
“Under the Act and the Container deposit legislation I am obliged to pay out on all containers but because I am only able to onsell certain brands I cannot start operating or I would be broke within days.
“Even if locals collected all the cans in town I would not be able to pay them.”
Since the cash for containers scheme was introduced into the Territory, Tennant Creek residents have also been hit with extra charges.
Prices for some beverages have risen by up to 18 cents per container to cover the cost of the 10 cent refund and handling fees.
Goldfields Hotel Manager Mick O’Rourke said for their Carlton deliveries this week they paid close to $800 extra because of the cash for containers legislation.
“This has to be paid by someone and unfortunately our customers have to pick up the tab and they’re not happy about it,” Mr O’Rourke said.
“It has been a massive headache for licensees because we’re the ones who have to deal with all the disgruntled customers.
“Everything has gone up - beer, wine, spirits and soft drink. A carton of beer now costs $5 more.”
NT Environment Minister Karl Hampton, who visited Mr Gregory at his Irvine St depot recently, admitted that there were glitches in the scheme.
His said his Department was committed to resolving the problems and would work with collection dealers like Mr Gregory to make the cash for containers scheme more workable.
Email a friend