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| Mr HAMPTON (Natural Resources, Environment and Heritage): Madam Speaker, I move that the bill be now read a second time. The purpose of the Environment Protection Beverage Containers and Plastic Bags Bill is to establish the regulatory framework for a Northern Territory container deposit scheme and a ban on the supply by retailers of single-use, lightweight, non-biodegradable plastic bags. These important initiatives will assist in establishing a culture of improved waste management, recycling, and sustainable living in the Northern Territory. Passage of this bill will see the Northern Territory become the first jurisdiction in Australia to commit to such an initiative since the South Australian government introduced its legislation on container deposits in 1975, and plastic bags in 2009. The Territory community has long supported the introduction of a container deposit scheme. Over the years we have seen a number of voluntary schemes implemented, including that now operating in Alice Springs. The member for Nelson will be aware of the history of consideration of such a scheme in the Northern Territory. He has been a strong advocate for a container deposit scheme. I thank the members for Nelson, Macdonnell, and Fannie Bay for their contributions made in informing the development of this bill. I am sure they are as excited as I am about the introduction of this bill which represents a significant milestone in making a container deposit scheme a reality in the Northern Territory. Through the Territory 2030 strategic plan this government is committed to reducing the amount of waste being taken to rubbish dumps by 50% by 2020. The container deposit scheme and plastic bag ban proposed in this bill are two key measures which will assist in reaching this target. These measures will take millions of bottles, cans, and plastic bags out of landfill, our waterways, parks, and streets. The container deposit scheme and plastic bag ban are also important strategies identified in the Territory government’s Climate Change Policy. Territorians use approximately 40 million plastic bags and over 100 million drink containers each year and consumption is on the rise. These plastic bags and drink containers fill our landfills with products that do not really break down, and many of them cause high visible litter problems or find their way into our oceans. In the 2009-10 Keep Australia Beautiful National Litter Index, plastic litter items contributed the highest amount of volume to the litter total in the Northern Territory. The Northern Territory’s container litter represents 10% of all container litter recorded across Australia. This is unacceptably high considering the Northern Territory represent just 1% of the country’s population. Plastic bags and beverage containers create litter in our street, kill wildlife and, through their production, deplete natural resources and increase greenhouse gas emissions. This bill will reduce beverage container and plastic bag litter and increase resource recovery in the Northern Territory. The Northern Territory currently has a limited collection system for recyclables. The opportunity to expand collection systems and services is an exciting opportunity and a great challenge. The Territory government has started to build new working relationships with established industries and businesses and wants to develop opportunities for new partnerships locally. Not only will the environment protection bill work to minimise environmental pollution, but the container deposit scheme will be a great opportunity for individuals, community groups, sporting groups, and schools to raise money. During the drafting of the bill, the Territory government has been consulting with key stakeholders in the beverage industry, retail industry, waste industry, local councils, as well as community groups. The majority of stakeholders in the retail and waste industries consulted either accept of support the container deposit scheme. No doubt, the beverage industry as a whole would prefer government to not go down this path, but constructive discussions have occurred. A number of companies have indicated their acceptance, and I believe more will do so as we work through the detail. All community groups consulted were supportive, and strong feedback from the public indicates that most in the community agree that the container deposit scheme would help to reduce litter in the Northern Territory. All retailers consulted, including national and remote operators, are supportive of the plastic bag ban. Consultations with stakeholders will continue over the coming months to work through the operational components of the container deposit scheme and the plastic bags ban. Madam Speaker, I will now turn to the bill in more detail. The objectives of the Environmental Protection (Beverage Containers and Plastic Bags) Bill 2010 are: To minimise environmental pollution by: One, establishing a container deposit scheme to reduce beverage container waste and to increase resource recovery, reuse and recycling; and two, regulating the supply by retailers of single use plastic bags. The bill combines provisions for a container deposit scheme and a ban on plastic bags. I will discuss each of these in turn. The bill provides the necessary regulatory framework for the establishment of a container deposit scheme. It achieves this by prohibiting the supply in the Territory of containers unless they are approved or specifically excluded. Under this bill, an approval to supply beverage containers in the Territory is subject to the requirements that the container bear the approved refund marking and an effective waste management arrangement is in place for the container. A waste management arrangement for approved containers is an arrangement made by participants in the scheme for the collection, sorting and aggregation of the containers and their reuse, recycling or other appropriate disposals. Under the scheme, empty containers bearing the approved refund marking can be delivered to an approved collection depot for the consumer to receive a 10¢ refund per container. Collection depot operators must also ensure that a waste management arrangement is in place for the containers collected. This creates the necessary nexus between beverage manufacturers and those collecting their containers. The operator of an approved collection depot must pay the 10¢ refund to the person returning an approved container. The operator of the collection depot may require the manufacturer to pay the refund amount and the reasonable costs incurred by the operator relating to sorting, cleaning, storing, packing and processing the container to ensure the container can be reused, recycled or otherwise disposed of. It is anticipated that the beverage industry will appoint an administrator for the scheme, similar to the super collectors in South Australia. Their role includes collection and management of deposits and fees, and finding markets for the collected glass, plastics, aluminium and cardboard. The bill establishes a container deposit scheme in which the beverage industry has a central role in the implementation. I understand that some in the community believe that government should run the scheme, or that it should be managed by an independent operator. Government has looked very closely at those alternatives, and while there are attractive elements with both, it is quite clear that either would be at risk of being invalid under the Australian Constitution. The provisions in the bill have therefore been modelled on those in the South Australian container deposit legislation. This creates a uniformity of approach that provides certainty and simplicity for everyone involved, and provides industry with a model they are already familiar with and have been operating for over 35 years. Other areas of consistency with South Australia are that each eligible container will receive a 10¢ deposit, and the initial scope of containers covered by the scheme is identical. There are, however, some changes to the approach in this bill that are worth highlighting. The bill requires the responsible minister to develop principles for ensuring effective, efficient and equitable waste management arrangements. These principles will be developed in consultation with manufacturers, distributors and retailers of regulated containers, operators of collection depots and prospective participants. These principles will be formally adopted as a service level charter identifying responsibilities of participants in the scheme. The principles will deal with: · the responsibilities of participants in managing the collection, reuse, recycling or other disposal of regulated containers in a cost-effective and efficient way; · the provision of reasonable access to collection depots throughout the Northern Territory; · the establishment of a standard and transparent process for receiving and paying refunds and handling costs, including those processed in bulk; · a dispute resolution process for participants; and · an accountable and transparent monitoring process. Another difference in this bill is the inclusion of a built-in mechanism to review and possibly expand the types of containers covered by the scheme. As stated, the containers included in the scheme will initially be aligned with those in the South Australian scheme; however the bill requires a review of the range of containers to which the scheme applies within two years of commencement. A further key difference is the inclusion of provisions for setting and monitoring of targets for the reuse, recycling or other disposal of regulated containers. So while the scheme to be established by the bill is modelled on the South Australian scheme, government has sought to make specific improvements within constitutional constraints. It is imperative that all beverage manufacturers wishing to sell their product in the Northern Territory participate in the implementation of the scheme. Importantly, offences have therefore been created in the bill to ensure everyone is clear about their responsibilities regarding the scheme. This scheme is not voluntary. The supply of a beverage in a regulated container to a retailer for sale can only occur if the container is approved. The bill creates two levels of offences to deal with any contraventions of this requirement which are scaled to the level of risk the offence poses to the scheme. An offence involving strict liability will be imposed on typically low-risk offences with the current maximum penalty of $13 300 for an individual, or if subject to an infringement notice, a penalty of $266. A second offence involving fault elements of recklessness and intention will be enforced for the larger, higher-risk offences. The penalty for such offences is currently a maximum of $53 200 for individuals and $266 000 for a body corporate. Each transaction which supplies unapproved containers attracts a separate offence, thereby increasing the deterrent to those who may be considering undermining the scheme through non-compliance. Additionally, this bill holds the director of a body corporate accountable for any of the committed offences. Other offences created through the bill include the sale of an unapproved beverage container by a retailer, claiming a refund on a container which was not purchased in the Northern Territory or South Australia and claiming a refund on a container which was purchased before the scheme commencement date. This last offence is part of a suite of measures in the bill which is aimed at preventing the return of containers which were purchased prior to the scheme’s commencement for refund. This is to manage the potential problem of stockpiling as returning such containers can potentially have a substantial financial impact on the scheme as manufacturers would be required to pay redemptions on containers prior to that redemption being factored in to the market price of regulated containers. This would be unfair to industry so this bill disallows the redemption of deposits on containers purchased before the scheme comes in to operation. Other measures to minimise this risk include the capacity in the bill for a limit on the number of containers which can be redeemed in a single transaction. Additionally, government will ensure this issue features prominently in the community awareness campaigns conducted for the scheme. This bill provides for commencement of the container deposit scheme in late 2011. Following consultations with stakeholders, a transition period has been included in the bill to allow the beverage industry time to label regulated containers with an approved refund marking. This period will be 24 months from the commencement of the bill. In the interim period, the South Australian refund marking will be recognised for the purposes of the Northern Territory scheme. The scheme established under the bill does not require that retailers operate as collection centres, although they may choose to provide such a service. I expect this may be the case in remote communities where community stores may choose to offer collection services as an adjunct to other enterprises. It is also important that this bill allows for innovative and convenient collection technology such as reverse vending machines. While part of container deposit schemes in Europe and North America for some time, these machines are only now being trialled in South Australia. The service level charter established under the bill will help resolve some of the issues which have proven to be a barrier to the adoption of innovative technology in the South Australian scheme. No doubt the container deposit scheme created through this bill will create considerable interest amongst industry, local government and the community. Government has undertaken considerable consultation thus far which has assisted in framing this bill, and will continue to consult as the emphasis shifts to implementation next year. No doubt there will be some in the community who wish to raise issues such as the impacts on kerbside collection and price impacts on regional implementation. I offer reassurance that government has methodically worked through these issues and is confident this bill will create a scheme which is financially, legally and regionally viable. With commitment, none of these issues are insurmountable and I encourage industry to continue to engage with this perspective in mind. As the emphasis shifts to implementation of the scheme ongoing engagement will be achieved through a number of mechanisms. A steering group of key retailers, beverage industry and waste industry representatives, including representation from remote communities, will be established to lead the development of the service level charter. A comprehensive communication strategy has been developed which will ensure the community is kept well informed of developments, and a working group has also been established incorporating the Darwin City Council, City of Palmerston Council, Local Government Association of the Northern Territory and the Northern Territory government. The group will work through the potential impacts the scheme may have on current kerbside recycling contractual obligations. My Department of Natural Resources, Environment, the Arts and Sport is committed to working through these considerations with local councils to ensure positive outcomes for Territorians, the environment and councils. The Environment Protection (Beverage Containers and Plastic Bags) Bill will also regulate the supply of single use non-biodegradable lightweight plastic shopping bags. Plastic bags are a highly visible ugly component of litter. They do not readily break down in landfill, and often find their way into our oceans or our streets. Their production depletes natural resources and increases green house gas emissions. Under this bill the supply by retailers of single use lightweight plastic bags will be prohibited. More specifically, the bill defines these bags as those with handles and made of polyethylene, with a thickness of less than 35 microns. This bill does not prohibit the supply of alternatives to single use plastic bags and the following alternatives will remain available to consumers. · reusable ‘green bags’, that is, heavy polypropylene plastic bags designed to be reused over 100 times; · recycled bags shoppers bring along themselves; · heavier retail or boutique bags, typically used by clothing and department stores; · biodegradable bags that state they meet the relevant Australian standard; · barrier bags, the type dispensed from roll, typically for items such as loose fruit and vegetables and deli products. The ban is due to take affect in late July 2011. Government has listened to retailers and this date avoids the busy Christmas period. In the lead up to the ban, a four month phase-out period will be implemented. The objective of the phase-out period is to raise awareness of the ban, facilitate a smooth introduction and allow retailers the time to introduce systems and alternative bags. During the phase-out period a retailer may only provide a prohibited plastic bag to a customer to carry goods if an alternative bag is also available to be provided to the customer upon request. This will ensure that consumers gradually become accustomed to their options and retailers are not left without unreasonable stocks of old plastic bags by the introduction of the ban. In the lead up to and during the phase-out period, government will be assisting retailers by providing a comprehensive training manual, signage materials, fact sheets and information forums. Government will also be working with the relevant unions, ensuring for example that relevant occupation health and safety issues are adequately addressed. Government is particularly focused on providing assistance to small and remote retailers so they can readily access plastic bag alternatives. It is enlightening to note of the 90 stores operating in remote parts of the Territory, at least 37 stores are unlikely to be impacted by the regulatory ban as they are already plastic bag free. This clearly demonstrates the benefits of being proactive on important environmental issues and that this bill is in line with community expectations and business realities. A concerted community awareness campaign will also be conducted to inform consumers of the changes and, more particularly, their options. It will cover, for example, issues such as bin liners and how to avoid getting caught short without a bag when popping into the shop on the way home from work. We have all become accustomed to the easy availability of lightweight plastic bags. It will take some time to imbed new routines and behaviours, but South Australia has clearly shown it can be done. Once the full ban comes in to effect, a retailer cannot provide a prohibited bag to a customer. The penalty for supplying a prohibited bag is 50 penalty units, or currently $6650 for an individual and $33 250 for a body corporate. The bill also creates an offence for misrepresenting that bag is permitted when it is actually prohibited, and the penalty for this offence is $26 600 for an individual and $133 000 for a body corporate. Two-and-half-years after the ban has commenced, the bill requires the responsible minister to prepare a report which will assess the effect of the plastic bag ban on the following: on the community, the restrictions of supply of prohibited plastic bags, and the other relevant matters pertinent to the plastic bag ban. I introduce this bill as an important step towards developing a culture of improved waste management, recycling, and sustainable living in the Northern Territory. How we reduce the consumption of natural resources that support our everyday lives while maintaining our standard of living is one of the great challenges of the 21st century. By combining community expectations with sound business practice to protect our environment, this bill embodies the principles of ecologically sustainable development that informs this government’s decisions. This bill puts the principles of ecologically sustainable development into practice. Madam Speaker this bill helps us take an important step towards reducing our collective ecological footprint. The passage of this bill will lead us towards a Territory economy that is strategically placed as a green resource base into the future, and the community expects this government and this bill will work towards delivering on those expectations. I commend the bill to honourable members. Debate adjourned. |