Tasmanian beverage producers are urging consumers not to be discouraged from purchasing their products when prices go up on May 1.
The pending price hike will come into effect as the state’s new 10-cent container deposit “Recycle Rewards” program begins.
The scheme will be the most expensive of its kind in Australia and comes with significant costs.
Labor leader Dean Winter said the additional cost per aluminium container imposed on suppliers will be just over 21 cents.
Comparable schemes in other parts of the country have lower costs, with the ACT at 16 cents and Victoria at 14 cents per container.
Cidermaker Adam D’Arcy of Plenty Cider told Pulse the looming price hike is “just another hurdle” for Tasmanian producers.
He estimates an additional $3.20 will be added to the sale cost of their 16-pack of cider.
“There’s going to be a greater cost associated with our product, which ultimately will need to be passed on to consumers, making our product more expensive,” he said.
“It’s good to be doing what we need to, to encourage recycling. But the cost of production is already high, margins are already low and it’s putting the squeeze on an industry that’s already under a lot of pressure.”
Labor leader Dean Winter said local bottle shop owners have dubbed the initiative, which could increase the price of a 30-can block of beer by $6.50, “Rocky’s Beer Tax”.
“People trying to do the right thing by recycling shouldn’t be harmed by the scheme,” Winter said.
“Even if a consumer recycles every can or bottle that will only equate to a refund of $3, which goes nowhere near the $6.50 increase.”
Premier Jeremy Rockliff defended the initiative and pointed out its environmental benefits.
“It provides a 10 cent refund for eligible containers and will significantly reduce litter and increase recycling,” he said.
