Container Deposit Scheme Update
On 8 May 2016 the NSW Government announced its intention to pass legislation to establish a container deposit scheme to commence operation from 1 July 2017. The NSW Government intention is to introduce a scheme similar to one that has operated in South Australia for several decades.
NSW Government research indicates that approximately 160million containers are littered in NSW every year in bushland, creeks, rivers and the ocean. Of these 44% are drink containers.
Scouts has been engaging with the NSW Government regarding this initiative given the opportunity for significant revenue generation for Scouts NSW and a profound contribution to improving our environment.
There are two main sources of value potential for Scouts NSW:
- Initial collection of containers by Scout Groups redeemed by Scouts NSW at a Scouts NSW (or other) collection depot (10c per container) with proceeds retained by the relevant Scout Group.
- Operation by Scouts NSW of depots to consolidate containers with revenue through a handling fee provided for each container by the Scheme Coordinator.
General Manager, Andrew Smith is leading a project on behalf of the Board of Directors to establish the feasibility of Scouts NSW involvement in the scheme. The feasibility study will generate a business case that looks at the costs, returns and risks of this opportunity. He is actively managing and engaging with the State Government and other stakeholders to ensure that Scouts NSW is in a strong position to enter the market.
With the scheme already a huge success for Scouts South Australia, Andrew has visited collection centres in SA to gain further understanding of the inner-workings of this business and potential benefits for Scouts NSW.
Scouts SA, QLD and NSW are working collaboratively in this regard leveraging the considerable experience Scouts SA have accumulated in operating a Container Deposit and Recycling Business over several decades.
“This initiative has the potential to grow the revenue base of Scouts NSW in support of our great youth programs to young people State-wide,” Mr Smith said.
To ensure that the approach to government is consistent, Mr Smith is the authorised representative on behalf of Scouts to make representations regarding Container Deposit Business Development.
Regular updates will be provided as the project progresses.