A report by the Economic Regulation Authority (ERA) has found that the State’s Containers for Change program has not resulted in an unreasonable rise in prices at the checkout.
The ERA said its Report on the effects of the container deposit scheme on beverage prices in Western Australia (Draft report, 21 July) showed drink prices had increased by less than it cost suppliers to participate in the Containers for Change Scheme.
Containers for Change was launched on 1 October 2020 and, in the first six months, the ERA estimated resulting retail price increases were 10.5c per container for non-alcoholic beverages in metropolitan markets and 7.6c per container for alcoholic beverages in metropolitan markets.
The independent economic regulator said regional prices increased by a similar amount, taking into account fluctuations due to a smaller data-set.
Minister for the Environment, Amber-Jade Sanderson said the ERA’s Report confirmed beverage companies were doing the right thing and had not unreasonably raised drink prices because of the container deposit Scheme.
“This is welcome news and I thank the industry for their participation in Containers for Change,” Ms Sanderson said.
“The Report also once again shows just how well the Western Australian community has embraced the Scheme, with a return rate in the March 2021 quarter that was bigger than that achieved by NSW during their Scheme’s first year of operation.”
Ms Sanderson said it was an achievement to be celebrated and one West Australians could be proud of.
The ERA said it would continue to monitor prices for the rest of the Scheme’s first year and would then make a recommendation to Government about whether monitoring needed to continue.
The ERA 37-page draft Report can be accessed at this PS News link and feedback can be submitted by 23 August at this link.
