The Queensland government has recently put forth proposed legislation aimed at revamping the governance of the Containers for Change program, while simultaneously confirming that there will be no increase to the current 10-cent refund amount.
Coca-Cola Europacific Partners (CCEP) expressed concerns in a submission to a parliamentary committee, stating that the new legislation introduces “practical challenges” that might lead them to reconsider their participation in the program.
A representative for the state’s environment minister indicated that a parliamentary committee is evaluating proposed modifications intended to enhance the container refund initiative.
Coca-Cola has indicated that it may withdraw from Queensland’s container refund program should significant reforms be enacted. An inquiry into the Containers for Change program, which was presented in the state parliament last year, revealed allegations of conflicts of interest, unfair contracts, and instances of bullying and harassment.
This inquiry led to ten allegations being forwarded to Queensland’s corruption watchdog, although specific details have not been disclosed.
The LNP government has now proposed legislation to reform the governance of the program while ensuring that the 10-cent refund remains unchanged. CCEP emphasized in its submission that the new laws create “practical challenges” that could compel them to reevaluate their role in the scheme.
The company highlighted that its reputation is closely tied to the integrity of the program, and the proposed reforms alter the conditions under which they initially agreed to participate. The state government did not directly address inquiries regarding the potential fallout from Coca-Cola’s exit from the program.
Coca-Cola is a founding member of COEX, the organization that manages the Containers for Change initiative. Established in 2018, this non-profit organization is financed by charging beverage companies for each container they produce.
The inquiry report indicated that the program has generated $2.5 billion in revenue since its launch, but noted that less than 40 percent of that amount has been returned to Queensland residents, with under 2 percent allocated to charitable organizations.
In its submission, Coca-Cola acknowledged the “historical accounts of complex and, in some cases, disputed matters related to COEX’s governance,” but criticized the limited time afforded to them for a rebuttal. “While we respect the Committee’s processes and the complicated issues it was deliberating, we did not have a meaningful opportunity to address these matters during the Inquiry, despite their implications for CCEP’s reputation,” the company stated.
Concerns have been raised that consumers might face price hikes as a result of the proposed reforms. Submissions from COEX, Coca-Cola, and beverage manufacturer Lion, the other founding member of COEX, all indicated that the anticipated reforms would lead to increased administrative costs. They asserted that these expenses would ultimately be passed on to consumers in Queensland.
“Any rise in scheme costs will ultimately be shouldered by beverage companies and will be reflected in consumer pricing. We are particularly concerned about this given the current economic pressures facing both businesses and consumers,” Lion Australia noted in its submission.
The state government did not directly comment on the claims regarding potential cost increases for consumers. A spokesperson for Environment Minister Andrew Powell stated, “A parliamentary committee is reviewing proposed changes to strengthen the container refund scheme, and we encourage anyone to share their opinions during this process.”
