Thursday 17 October 2013

Drink container deposit scheme.

New South Wales is considering imposing a deposit on all bottles and cans sold in this state.   The customer can then claim a partial refund if the container is returned to a collection centre.   The aim is to reduce the litter we see when drink containers are disposed of carelessly.

A similar scheme has been in place for decades in Adelaide, but as usual the devil is in the detail.   We have yet to see how many collection centres will be involved - and precisely where they will be located.

It is expected that this scheme will be self financed.  Each and every drink container will attract a twenty cent deposit at the point of sale - and the customer will get a ten cent refund when it is returned.  It is estimated that this will cost the average household about $ 300 a year.

The big question is whether the average person will bother to go to the trouble of reclaiming those ten cent refunds, or if this will morph into just another tax with little tangible results.

It also offers a huge opportunity for a national charity to be innovative and gain a source of income.   The idea of distributing a plastic rubbish bag to every home in Sydney - and asking the residents to donate used drink containers as their charity donation - would have appeal to many people.

A monthly pickup - street by street - would involve a staggering amount of money when the potential number of items at ten cents each is taken into consideration.

A final decision on this scheme has not yet been taken, but opportunity is knocking on the door and these days charity financing is big business.  Now is the time for an innovative CEO to take a new approach by way of broader horizons.

Much more innovative than simply paying for television time - and asking the public for money !

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