The rollout of the Container Deposit Scheme in the NT has been a bumpy ride, but Katherine rubbish authorities are hopeful the kinks will smooth out.
After the starting date of January 3 stalled for a week, residents are now covering retailer price hikes to recover costs.
The system which promises to refund 10c per eligible can to increase recycling and community money pools has prompted a political slinging match.
The Country Liberals withdrew support earlier this month for what it’s calling a “disastrously executed” scheme.
Nevertheless, MT Bins will soon begin operating alongside one of the scheme’s coordinators, Envirobank, as local collection depots in Katherine.
It is coming on board after previously halting then finalising negotiated contracts with coordinators last week.
MT Bins owner Michael Knight said things hadn’t been as clear-cut as first declared.
He said early on, he and other approved depots from Darwin to Alice Springs signed on with the understanding the scheme would mirror that of South Australia which has been running for 30 years.
But when it came down to the crunch, he said, business deals with suppliers gummed up the flow of operations.
“How it works in South Australia, is all sales people know how many containers they sell in areas, so they ratio it down to all collection points and share it out,” Mr Knight said.
“But what happened in the NT, production coming to collection depots is now being sorted by brand.”
Repercussions are already being felt, with some retailers raising prices as a way to offset the refund.
Katherine rubbish warrior Jenny Duggan said she had heard of beer cartons soaring an extra $6, and Mr Knight said even schooners had risen in price, despite not coming under container classification.
“Places are increasing by pretty unreasonable amounts; they’re not just covering costs, they’re making a price out of it, too,” he said.
However, he said cost recovery was more detailed than people thought.
He explained collection depots added on a handling fee, which was passed on to coordinators, who then sent off to the recycler after adding on a cut.
After tight negotiating, Mr Knight said he had secured a handling fee “marginally less” than South Australia’s 5c per container.
But Chief Minister Paul Henderson has responded to unfair hikes by opening a complaint hotline and working with the consumer watchdog.
False claims can attract a fine of up to $1.1 million for a body corporate or $220,000 for an individual, but the ACCC does not have the power to force prices back down.
Rubbish warriour Jenny Duggan, who collects rubbish along the Katherine River corridor every morning, said while the scheme was needed to help the environment, “big hurdles” such as timing, incentives and logistics had been in the way to “achieve a positive result”.
“My biggest bugbear is why didn’t they start doing it next month?
“You can’t cash in last year’s cans - so there was never anything ready to collect on the day.”
There are also big criticisms of the rollout in remote communities, which may have to gather and cart containers to centres like Katherine and Darwin for processing.
The government agreed, blaming teething problems in getting the ball rolling.
But it said everything was on track in delivering a good model.
“We are only the second jurisdiction in more than 30 years to face up to the beverage industry bullies and get this scheme up and running – of course we expect some initial bumps along the way ...,” Leader of Government Business Dr Chris Burns said.
A $300,000 grants program for regional and remote infrastructure is expected to open again early this year.