Queensland s Container Refund Scheme update. Australian Beverages Council. 25 August 2017

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1 Queensland s Container Refund Scheme update Australian Beverages Council 25 August 2017

2 Overview 1. Background 2. Comparison between Qld and NSW schemes 3. Legislation overview 4. Product Responsibility Organisation 4. Structure and relationships 5. Next steps

3 Background 14 June 2017: Waste Reduction and Recycling Amendment Bill 2017 introduced into Parliament ( 14 June 2017: Bill referred to Agriculture and Environment Committee. 12 July 2017: Public hearing (27 July public forum in Yeppoon) 11 August 2017: Committee report tabled. To view the submissions, briefing information, broadcast, transcript from the hearing and full report:

4 Comparison between Qld and NSW schemes Qld Commences 1 July 2018 Commences 1 December 2017 Minister direct appoints scheme administrator - PRO No collection zones Competitive market arrangement for network coordination PRO contracts directly with Container Refund Point Operators 10c refund amount Same eligible and excluded containers Same refund marking Same timing for refund marking on containers One scheme administrator NSW Minister contracts with Scheme Coordinator 7 collection zones 1 mandated Network Operator Contracts with Minister and Scheme Coordinator Scheme Coordinator contracts with Network Operator (who contracts with collection point operators) PRO/Coordinator agreements with beverage manufacturers/first suppliers Recognition of prior approval under another scheme Container approvals required New approval required for NSW scheme

5 Legislation overview Establishes a transparent, accountable and auditable scheme Objectives: increase recycling; reduce litter; social enterprise, innovation and technology outcomes Provides for role and obligations of all parties; requirements for, and of, various agreements Penalties for making false refund amount claims; noncompliance of beverage manufacturers (eg. no container recovery agreement in place) Regulation will contain targets; small beverage manufacturer (SMB) definition and SMB contribution limit

6 Producer Responsibility Organisation Legislation specifically establishes the : ability for the Minister to invite and direct appoint a company to be the Product Responsibility Organisation (PRO) and functions, obligations and requirements of the PRO and non-performance penalties and sanctions for the PRO

7 Producer Responsibility Organisation The company appointed as the PRO must: be a not-for-profit company registered under the Corporations Act have a constitution that: maintains a board of 9 directors and prohibits dividends being paid to members of the company. Board composition: At least 1 director representing large beverage manufacturers At least 1 director representing small beverage manufacturers Independent chair and 1 director representing community interests (approved by Minister) At least 2 other directors legal or financial qualifications

8 Producer Responsibility Organisation Prior to PRO appointment the company must provide information about: how the scheme will be administered timing for entering into agreements, including the amounts to be paid by beverage manufacturers and to container refund point operators and establishing a network of container refund points itemised schedule of fees draft strategic and operational plan terms and conditions for agreements how the PRO will resolve disputes and handle commercial and sensitive market information.

9 Product Responsibility Organisation responsibilities PRO is responsible for: providing ongoing efficient and effective arrangements for the collection, sorting and recycling of empty beverage containers establishing a network of container refund points that will provide reasonable access to Queensland communities to return empty beverage containers ensuring beverage manufacturers have container recovery agreements in place and identifying those who are not participating setting the various amounts payable establishing a register of approved containers promoting the scheme and location of container refund points receiving and dealing with complaints form the public and scheme participants.

10 Structure and relationships PRO enters into agreements with: Beverage manufacturers Container Refund Point Operators Material Recovery Facility Operators PRO reports to Minister: quarterly about its operations annually providing details of achievements and an audited financial statement about any matter that may prevent or significantly impact on achieving objectives in the strategic plan; the performance of its functions; the financial viability of the PRO or public confidence in the integrity of the scheme. Container Refund Point Operator may have arrangement with a container collection (donation) point operator about payment of refund amount

11

12 Next steps

13 Thank you For further information contact: Kylie Hughes (Director, Waste Policy and Legislation) phone:

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