NT expects cash-for-containers problems

A Northern Territory politician is anticipating teething problems when new cash-for-containers laws coming into effect next week.

Independent MP Gerry Wood, who has been a strong supporter of the drink container deposit legislation, said he did not expect a smooth start to the NT’s scheme when it formally starts on January 3.

“It is not easy to get this thing up and going, so I would expect one or two years before some of these hiccups are sorted out,” Mr Wood said.

The returns scheme is based on a similar program that has run in South Australia for many years.

People will be able to return bottles and cans they buy in NT to collection depots, where beverage makers will ultimately have to pay a 10 cent refund.

The move is designed to promote recycling and reduce rubbish, and is due to begin in January next year.

But Coca-Cola Amatil sees the scheme as a tax on its products and has left open the possibility it may take legal action to stop it.

There have been fears Coca-Cola could take action up to a year after the scheme is introduced.

Mr Wood said by the time the teething problems in the new system are ironed out he hoped Coca-Cola would become a supporter of it.

He said he could foresee issues with the way the scheme operated in remote communities and even larger rural centres like Tennant Creek and Katherine.

There has also been concerns that Coca-Cola could use the introduction of the scheme as an excuse to raise their prices.

Earlier this month NT Environment Minister Karl Hampton said Coke was raising its prices for small retailers in the territory.

“The cash for containers model we are adopting has worked in South Australia for decades and Territorians want it here,” Mr Hampton said in a statement.

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