NSW to implement container deposit scheme

Macquarie Securities

Coca-Cola Amatil (CCL) noted the announcement made on the weekend by the New South Wales (“NSW”) Government regarding a proposed container deposit scheme. The NSW Government has indicated its preference to introduce a traditional 10 cent refund container deposit scheme (“CDS”). The CDS will have a single scheme coordinator which will be determined through an expression of interest process. Furthermore, an implementation group will be established to advise the NSW Environment Minister on starting up the scheme and a Standing Committee will be established to provide ongoing advice regarding the scheme.
Further details on the governance and operating model of the scheme have not been finalised by government. It is expected that once the details have been finalised, the proposed draft legislation and regulations will be released publicly ahead of its introduction into the NSW Parliament around August 2016. The NSW Government is targeting July 2017 for the scheme to be implemented. Further details regarding the container deposit scheme can be accessed online at the following address: http://www.epa.nsw.gov.au/waste/container-deposit-scheme.htm Source: Company announcements
Given the scheme will not be implemented for at least 12 months there will not be any immediate effects for CCL. The extent of medium to long term effects will become more clear when details of the operation model are finalised.