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IPART calls for industry feedback on NSW CDS

IPART calls for industry feedback on NSW CDS

The Independent Pricing and Regulatory Tribunal (IPART) is seeking feedback from the drinks industry and small business on the impact of the container deposit scheme - ‘Return and Earn’ - on the NSW beverage market.

IPART has released an Issues Paper today and requires submissions to made on the IPART website before March 13, 2018.

Chair Dr Peter Boxall said: “We’re inviting comment on our proposed approach to the review, including feedback on how the costs of the scheme have affected beverage prices, and whether there has been any impact on competition in the beverage industry.” 

IPART has not been asked to monitor the effectiveness of the scheme in achieving its objective of litter reduction or operational elements of the scheme, including the availability or accessibility of container collection points.

It will release a Progress Report on its findings in April, and Final Report in December 2018, covering the controversial Container Deposit Scheme’s first year of operation.

What the report will monitor

The Premier has asked IPART to monitor and report on:

1. The effect of the CDS on prices of beverages supplied in a container.

2. The effect of the CDS on competition for beverages and the performance and conduct of suppliers.

3. Any other market impacts on consumers that arise from the commencement of the CDS.

If IPART identifues adverse effects or behaviours arising from the operation of the scheme, it will recommend actions to address them.

It will also recommend whether monitoring should continue beyond the first 12 months. In addition, it may investigate any effects on consumers or suppliers that appear to be unfair or unjustified at our own discretion, or on request from the Premier or Minister for the Environment.

What is outside the scope of the review

The scope of IPART’s role is limited to monitoring, reporting on and potentially investigating the market impacts of the CDS, as outlined above.

It has not been asked to monitor indicators of the scheme’s effectiveness, such as its impact on the reduction in litter or operational elements of the scheme, such as the availability or accessibility of container collection points.

How it will conduct the review

IPART will conduct a public consultation process and its own research and analysis. It will also consult individually with key stakeholders such as consumers, suppliers, small business, industry bodies and government agencies.

The Issues Paper is the first step in its public consultation for the review.

It has also started collecting information from consumers on the market impacts of the scheme through our website feedback form. In addition, it has obtained advice from the CIE on the beverage industry in NSW and options for monitoring the impacts of the CDS.

Its progress report in April 2018 will set out its draft framework for monitoring the market impacts of the CDS and its findings on these impacts over the first three months of the CDS, and invite further submissions.

IPART will also hold at least two public forums – one in Sydney and one in a regional area – to provide stakeholders with another opportunity to comment on the review.