Brewers outraged by NSW container scheme

Kate Shuttleworth
NOVEMBER 28, 2017
Australian Associated Press

An independent brewer in NSW is considering legal action over costs associated with the state’s drink container deposit scheme which starts on December 1.

The imminent rollout of NSW’s controversial “cash-for-cans” scheme has independent brewers up and arms – with one considering legal action over compliance costs they say are putting them out of business.

From Friday, the government says consumers can head to 200 collection points across the state – including reverse vending machines, cafes and service stations – where they’ll be able to redeem eligible bottles for 10 cents each.

Anyone who hands in containers can donate their 10-cent refund to charity or receive a refund into a registered PayPal account or in the form of a Woolworths retail voucher.

Woolworths, a refund partner of the scheme, has already erected signs in their stores advising customers that “the price of many beverages will be increasing” with “the NSW Government initiative to reduce litter”.

Manly-based craft beer distributor Johnny Latta is considering legal action over a $25,000 administration fee he’s been charged by the Environment Protection Authority (EPA) to register the range of craft beer sold by Nomad Brewing Company.

Mr Latta, who represents 35 breweries from around the world, has been charged $80 per unique beer product, adding that he accepts more than 80 new products a month.

“I’ve told the head of EPA that I am not paying the $25,000 bill, and they can come and sue me.

“Basically the government has placed us in a war against commercial brewers who are able to aggressively price their beers to compete,” he said.

“Coke sells 20 different soft drinks, and they are selling hundreds of thousands of cases, so $80 per product is nothing to them.”

The beverage giant has already said it will recover costs of the scheme from customers by raising prices.

“We aim to recover the fees through an additional charge being added to our pricing to customers,” Coca-Cola Amatil’ managing director Alison Watkins told shareholders in August.

Mr Latta and Chris McNamara from the Independent Brewers Association will take their complaints to Environment Minister Gabrielle Upton and the EPA’s head Barry Buffier.

“I’d like to get some answers about why small brewers have been included,” Mr McNamara told AAP.

“We will be pointing out the inequities that exist in the system and how they detrimentally affect small brewers – for example, the advantage given to larger brewers given their size and business,” he said.

The government has offered businesses $200,000 interest-free loans to help them with the high fees associated with the recycling scheme, which it says will halve the number of bottles and cans being discarded.