2014 - Cost benefit analysis for a Tasmanian Container Deposit System
In recent years, there has been considerable focus on container deposit systems (CDS) at both the State and National level.
Funding to undertake a contemporary cost benefit analysis for a Tasmanian CDS was provided in the 2013/2014 State Budget. Following an open tender process, the EPA Division engaged Marsden Jacob Associates to undertake the ‘desktop’ analysis.
The key findings of the Tasmanian analysis are that while there are some benefits to a State-based CDS, these would come at a significant cost. Litter rates of beverage containers would decrease, and there would be benefits to Local Government; however, the cost to industry (and probably to Tasmanian consumers as industry passes on increased costs) would be a net cost to Tasmania of $86 million (NPV) over 21 years.
Read the MJA Final Report here.
In December 2014, the Tasmanian Government accepted the findings of the MJA analysis, and the Minister for Environment, Parks and Heritage announced the decision not to proceed with the introduction of a State-based CDS system.
The Government’s decision emphasised that Tasmania would continue to participate in national work to address litter and waste from packaging. This has included the national Packaging Impacts Study, which examined a range of national options for improving the recovery of packaging materials, including beverage containers, and reducing litter. Collaboration with the Australian Government and the other State and Territory jurisdictions will continue to address these issues.
2009 - Feasibility Study for Container Deposit System
In June 2004 the Tasmanian Parliament’s Joint Standing Committee on Environment, Resources and Development commenced an investigation into Waste Management in Tasmania.
The Committee's final report included a recommendation that the State Government introduce a container deposit system (CDS) in Tasmania, subject to its viability and effectiveness being supported by a cost-benefit analysis.
In December 2008 the then Environment Division contracted an environmental consulting firm, Hyder Consulting Pty Ltd, to study the best model for a CDS in Tasmania, should one be introduced. Hyder's Final Report examined container deposit systems in Australia and overseas, and assessed options for a Tasmanian system.
The report concluded that a ‘hybrid’ CDS built around the most effective elements of existing interstate and overseas systems has the potential to improve recovery of beverage containers in Tasmania. However, the report also demonstrates that establishing and operating a CDS would be a complex and challenging process requiring very careful consideration by the community and the State Government.
Hyder Final Report – Feasibility of a Container Deposit System for Tasmania
Marsden Jacob Associates - Final Report - Tasmanian CDS Cost Benefit