Senate debates
Monday, 7 December 2020
Bills
Recycling and Waste Reduction Bill 2020, Recycling and Waste Reduction (Consequential and Transitional Provisions) Bill 2020, Recycling and Waste Reduction Charges (General) Bill 2020, Recycling and Waste Reduction Charges (Customs) Bill 2020, Recycling and Waste Reduction Charges (Excise) Bill 2020; In Committee
8:25 pm
Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Hansard source
by leave—In respect of the Recycling and Waste Reduction Bill 2020, I move Australian Greens amendments (1) to (11) on sheet 1134 together:
(1) Clause 5, page 4 (line 31), at the end of the paragraph beginning "The third regime", add "As part of that regime, specific provision is made for a mandatory product stewardship scheme for packaging and plastics."
(2) Clause 10, page 7 (line 3) to page 12 (line 4), insert:
annual turnover, of a packaging and plastics scheme member: see subsection 94G(5).
container includes (without limitation) any cup, drinkware, pack, carton, box, tin, packet, bag, pouch, tube or other container.
filter tip of a cigarette has the same meaning as in the Tobacco Plain Packaging Act 2011.
packaging includes:
(a) a container, wrapper, confining band or other thing in which a good is packed, or 2 or more goods are packed; and
(b) anything around which a good is wound or wrapped, or 2 or more goods are wound or wrapped; and
(c) a container that is designed to contain a liquid for human consumption (whether for the purposes of transporting or storing the liquid, or for the use or consumption of the liquid).
packaging and plastics scheme: see subsection 94A(1).
packaging and plastics scheme member: see section 94B.
packaging and plastics targets: see subsection 94A(2).
reportable financial year, for a packaging and plastics scheme member: see subsection 94G(3).
sanitary products has the meaning prescribed by the rules.
scheme product: a scheme product is one of the following:
(a) packaging;
(b) a product made of, or containing, plastic if the product is within the following classes of products:
(i) balloons;
(ii) sanitary products;
(iii) wet wipes;
(iv) filter tips of cigarettes;
(v) products specified in rules made for the purposes of this subparagraph;
(c) a product made of, or containing, plastic if the product consists of microbeads;
(d) a product made of, or containing, oxo-degradable plastic.
scheme requirement means a requirement specified in rules made for the purposes of subsection 94C(1).
wet wipes has the meaning prescribed by the rules.
(3) Clause 66, page 67 (after line 13), after the paragraph beginning "These requirements might", insert:
The mandatory product stewardship regime also provides for a specific scheme for packaging and plastics, which includes setting packaging and plastics targets and requirements for packaging and plastics scheme products.
(4) Page 100 (after line 16), after Part 5, insert:
P art 5A—Mandatory product stewardship—packaging and plastics scheme
Division 1—Establishment and membership of the packaging and plastics scheme
94A Packaging and plastics scheme
(1) This Part establishes a scheme (the packaging and plastics scheme) that is directed towards achieving the packaging and plastics targets by doing the following:
(a) establishing scheme requirements in relation to packaging (see Division 2);
(b) monitoring packaging and plastics scheme members (see sections 94G and 94H);
(c) directing a packaging and plastics scheme member to take, or not to take, certain actions (see sections 94J and 94K).
(2) The packaging and plastics targets are the following targets:
(a) all packaging used in Australia will be reusable, recyclable or compostable by 2025;
(b) 70% of all packaging used in Australia will be recycled or composted by 2025;
(c) 70% of all plastic packaging used in Australia will be recycled or composted by 2025;
(d) all packaging used in Australia will include, on average, 50% recycled content by 2025.
94B Membership of the packaging and plastics scheme
A person is a packaging and plastics scheme member of the packaging and plastics scheme if:
(a) the person is:
(i) a constitutional corporation; or
(ii) a body corporate that is incorporated in a Territory; and
(b) the person manufactures, imports, distributes or uses packaging for commercial purposes.
Division 2—Scheme requirements
94C Scheme requirements
(1) The rules may require one or more specified persons to take, or not to take, specified action in relation to a specified scheme product.
Note: For specification by class, see subsection 13(3) of the Legislation Act 2003.
(2) The action must relate to the objects of this Act.
Note: For limitations on the power to make rules for the purposes of this Part, see sections 94D (Matters the Minister must be satisfied of before scheme requirements are made) and 94E (scheme requirements—constitutional connection).
(3) Without limiting subsection (1), rules made for the purposes of that subsection in relation to a scheme product may do any or all of the following:
(a) prohibit (either absolutely or subject to conditions), limit, restrict or otherwise affect the manufacture, import, export, distribution or use of a scheme product;
(b) prohibit (either absolutely or subject to conditions), limit or restrict substances from being contained in a scheme product;
(c) require a scheme product to be labelled or marked in accordance with the rules;
(d) specify requirements in relation to packaging a scheme product;
(e) specify requirements in relation to the durability, reparability and reusability of a scheme product;
(f) specify requirements in relation to communicating information, in accordance with the rules, in connection with distributing, reusing, recycling, recovering, treating or disposing of a scheme product;
(g) specify other requirements in relation to reusing, recycling, recovering, treating or disposing of a scheme product;
(h) provide for the Minister to exempt a specified person from a requirement specified in rules made for the purposes of that subsection.
(4) The paragraphs of subsection (3) do not limit each other.
94D Matters the Minister must be satisfied of before scheme requirements are made
Before the Minister makes rules that prescribe scheme requirements, the Minister must:
(a) be satisfied that the requirements will further the objects of this Act (see section 3); and
(b) be satisfied that the requirements are directed towards achieving the packaging and plasticstargets (if applicable); and
(c) have done the following:
(i) published a draft of the requirements and invited packaging and plasticsscheme members to make submissions on the draft;
(ii) considered any submissions that are received within the time limit specified by the Minister when the Minister published the draft.
94E Scheme requirements—constitutional connection
(1) One or more of the following must apply in relation to scheme requirements in relation to scheme products:
(a) the requirements are expressed only to apply in relation to action taken, or not taken, by a constitutional corporation;
(b) the requirements are expressed only to apply in relation to the taking of action in the course of constitutional trade or commerce;
(c) the requirements are expressed only to apply in relation to an action taken, or not taken, in a Territory;
(d) the requirements are appropriate and adapted to give effect to Australia's obligations under an agreement with one or more other countries.
(2) The scheme requirements in relation to scheme products must:
(a) specify whether they are made in accordance with paragraph (1)(a), (b), (c) or (d); and
(b) if they are made in accordance with paragraph (1)(d)—identify the agreement referred to in that paragraph.
94F Compliance with scheme requirements
(1) A person contravenes this subsection if:
(a) the person is subject to a scheme requirement; and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Fault -based offence
(2) A person commits an offence if the person contravenes subsection (1).
Penalty: Imprisonment for 2 years or 120 penalty units, or both.
Strict liability
(3) A person commits an offence of strict liability if the person contravenes subsection (1).
Penalty: 60 penalty units.
Civil penalty provision
(4) A person is liable to a civil penalty if the person contravenes subsection (1).
Civil penalty: 240 penalty units.
Division 3—Monitoring of, and issuing directions to, packaging and plastics scheme members
94G Report from certain packaging and plastics scheme members
(1) A packaging and plastics scheme member must provide a written report in accordance with subsection (2) to the Minister if the member has had a reportable financial year.
Civil penalty: 1200 penalty units.
(2) The report must:
(a) be in the approved form; and
(b) be provided within 2 months after the end of the reportable financial year to which the report relates; and
(c) set out:
(i) the actions taken, or not taken, by the member to help achieve the packaging and plastics targets during the reportable financial year; and
(ii) the actions the member will take to help achieve those targets; and
(d) include information about the actions taken, or not taken, by the member in compliance with any scheme requirements; and
(e) include any matters specified in rules made for the purposes of this paragraph.
Reportable financial year
(3) A financial year is a reportable financial year for a packaging and plastics scheme member if the member had an annual turnover of $5 million or more in the previous financial year.
Publishing reports
(4) As soon as reasonably practicable after receiving a report from a packaging and plastics scheme member, the Minister must, in such manner as the Minister thinks appropriate, cause to be published or made available the following information from the report:
(a) the actions taken, or not taken, by the member to help achieve the packaging and plastics targets during the reportable financial year to which the report relates;
(b) the actions the member will take to help achieve those targets;
(c) the actions taken, or not taken, by the member in compliance with any scheme requirements;
(d) information relating to a matter specified for the purposes of paragraph (2)(e) that is specified in rules made for the purposes of this paragraph.
Annual turnover
(5) For the purposes of this section, the annual turnover of a packaging and plastics scheme member, during a financial year, is the sum of the values of all the supplies that the member, and any body corporate related to the member, have made, or are likely to make, during that year, other than the following supplies:
(a) supplies made from any of those bodies corporate (including the member) to any other of those bodies corporate;
(b) supplies that are input taxed;
(c) supplies that are not for consideration (and are not taxable supplies under section 72-5 of the A New Tax System (Goods and Services Tax) Act 1999);
(d) supplies that are not made in connection with an enterprise that the member carries on.
(6) Expressions used in subsection (5) that are also used in the A New Tax System (Goods and Services Tax) Act 1999 have the same meaning in that subsection as they have in that Act.
(7) The question whether 2 bodies corporate are related to each other is to be determined for the purposes of this section in the same way as for the purposes of the Corporations Act 2001.
94H Requests for information from packaging and plastics scheme members
(1) The Minister may, in writing, request a packaging and plastics scheme member to give the Minister information relating to the actions taken, or not taken, by the member towards achieving the packaging and plastics targets within a period specified in the request.
(2) If a packaging and plastics scheme member receives a request from the Minister under subsection (1), the member must provide the information requested within the period specified in the request.
Civil penalty: 1200 penalty units.
94J Minister may give directions to packaging and plastics scheme members
(1) This section applies if:
(a) the Minister has received:
(i) a report from a packaging and plastics scheme member under section 94G; or
(ii) information from such a member as requested by the Minister under section 94H; and
(b) the Minister is reasonably satisfied, on the basis of the report or information, that the actions taken, or not taken, by the member are not sufficient in helping to achieve the packaging and plastics targets.
(2) The Minister may, in writing, direct the member to take, or not to take, actions specified in the direction.
(3) A direction under subsection (2) is not a legislative instrument.
Notifying packaging and plastics scheme member of proposed direction
(4) Before giving a direction, the Minister must give the member written notice that the Minister is proposing to give the member the direction.
(5) The notice to the member must:
(a) set out the reasons the Minister is proposing to give the direction; and
(b) invite the member to respond, in writing, to the notice within a period specified in the notice.
(6) The Minister must consider any response given to the Minister within the specified period.
94K Packaging and plastics scheme member must comply with directions
(1) A packaging and plastics scheme member who is given a direction under subsection 94J(2) must comply with the direction.
Fault -based offence
(2) A packaging and plastics scheme member commits an offence if:
(a) the member is given a direction under subsection 94J(2); and
(b) the member engages in conduct; and
(c) the conduct contravenes the direction.
Penalty: 150 penalty units.
Civil penalty provision
(3) A packaging and plastics scheme member is liable to a civil penalty if the member contravenes subsection (1).
Civil penalty: 300 penalty units.
(5) Clause 102, page 110 (after line 6), after paragraph (1)(q), insert:
(qa) subsection 94F(3);
(qb) subsection 94G(1);
(qc) subsection 94H(2);
(qd) subsection 94K(3);
(6) Clause 106, page 115 (after table item 7), insert:
(7) Clause 109, page 119 (line 30), at the end of subclause (1), add:
; or (f) persons required by rules made for the purposes of subsection 94C(1) to take, or not to take, specified action in relation to a specified scheme product.
(8) Clause 109, page 120 (after line 15), after paragraph (2)(e), insert:
(ea) for an audit mentioned in paragraph (1)(f)—whether the person is taking, or is likely to take, the specified action in relation to the product;
(9) Clause 114, page 123 (after line 15), after paragraph (e), insert:
(ea) for an audit in relation to a person required by the rules made for the purposes of subsection 94C(1) to take, or not to take, specified action—the person;
(10) Clause 142, page 146 (after line 15), after paragraph (1)(g), insert:
(ga) persons who are required to take, or not to take, specified action in relation to scheme products under rules made for the purposes of section 94C;
(11) Clause 143, page 148 (after line 16), after paragraph (1)(e), insert:
(ea) requirements made under rules made for the purposes of subsection 94C(1) (packaging and plastics scheme requirements); or
This is the second group of substantive amendments I'll move tonight, following the ones we've just dealt with, which were for a ban on single-use plastics. I'm very sad that wasn't supported by the Senate tonight, but we won't be giving up. I would also mention again to the Senate that we've pulled an amendment on sheet 1029. That will not be moved tonight. That's off the menu. The reason we've pulled it is that we had some very constructive discussions with senators from Labor and other parties.
What we're doing in these amendments is very simple and straightforward. APCO, the Australian Packaging Covenant Organisation, are very confident they're going to meet the targets of their voluntary schemes. They've provided that evidence to two Senate inquiries. Their key stakeholders, the Food and Grocery Council, said they were going to meet their targets, Woolworths said they were going to meet their targets and Amcor said they were going to meet their targets. They're very confident. So we said: 'Great. If you can talk the talk then you won't mind walking the walk.' Tonight we're simply going to take what's already in existence and mandate by 2025 targets that are currently voluntary, so that when you walk into a supermarket 100 per cent of all packaging will be either recyclable or compostable, and 30 per cent of that packaging will be made from recycled product.
Of course, this is absolutely critical to the recycling industry in Australia. If they had confidence that APCO were going to meet their targets we wouldn't need a mandatory product stewardship scheme as is before the chamber tonight. That allows them to invest, increase their recyclate—take plastics as an example—and know there will be a readily available market for that plastic because, in law in this country, 30 per cent of that packaging is going to have to be made from already recycled material. That's very important to the waste management associations. Their evidence was very clear. Rose Reid and Gayle Sloan spoke at two Senate inquiries and were very up-front that they wanted a mandatory product stewardship scheme. In other words, they wanted the policy certainty that their industry could invest the money and get on with the job. And that means Australian jobs. It means tens of thousands of Australian jobs.
Senators don't necessarily know how potentially jobs-rich the recycling industry is. In a recent independent report on the recycling industry it was very clear that even just better washing of recycled materials could lead to 20,000 new jobs in this country. The report was from a technology centre in engineering excellence in Sydney. They were looking at the processes necessary to re-engineer products. That report is the only independent assessment of the state of recycling in Australia and of how we can build a circular economy. They're clearly saying that the recycling industry doesn't have policy certainty, and they outline that as one of the key problems with this government's approach. By the way, they're very complimentary of the government's approach in other regards. But they said that their feedback, from speaking to stakeholders, was very clearly that they didn't have the necessary confidence to invest. The recycling industry, across the board, doesn't believe that we have the policy settings right in this legislation, but they do support a mandatory product stewardship scheme for plastic packaging. Remember, they already employ 60,000 Australians, and they're the ones saying there are tens of thousands of new jobs if we get on with building a circular economy, fixing the waste process and looking after the planet.
I will just reiterate to senators that it's not only these key companies. I was on a fantastic hook-up that was organised by Plastic Oceans with the CEO of Amcor and other stakeholders. The CEO of Amcor, which is the second-biggest packaging company behind Visy, said on the call, and I've got the transcripts, that he supported mandatory product stewardship schemes—not just product stewardship schemes; he used the words 'mandatory product stewardship schemes'. I sometimes wonder why the government just won't do this—why they won't give the recycling industry, local governments, community groups and environment groups the certainty they need that there will finally be a policy framework so we can meet our targets. No more uncertainty—let's get on with it.
Lastly, Woolworths said in their submission—and they said it while giving evidence, because I asked them very specifically—that there's no difference to their costs in meeting a mandatory scheme versus a voluntary scheme. Because they are taking it so seriously and are getting on with it—they understand this is a significant matter of public interest—it isn't going to cost them any more to have a mandatory scheme. So, in fact, there is no basis at all to this idea that somehow mandating voluntary targets are going to cost businesses more money. There are no prescriptions here about exactly how industry should meet the targets. The Senate, in this legislation, is not saying to industry: 'Here are your targets. This is how you're going to meet them.' It's saying, 'You've got voluntary targets, great. You love them and are talking them up. You don't mind if we put them in law. It's up to you how you meet them. Go away and do it. Fantastic.' We could breathe easy, knowing that, by 2025, we would have finally got on with the job of rebuilding the recycling industry, have a proper circular economy and actually be protecting our planet. That's what this is about. It's a win-win for everyone. The only group, as I said, who have opposed it seem to be a couple of the bigger packaging companies. So I really don't understand why we wouldn't support this tonight.
I'll go through some detail in my last 2½ minutes or so. This, essentially, asks businesses with a turnover of over $5 million to report. No small businesses in the packaging industry will be captured. There are not many small businesses in the packaging industry as it is. There are plenty, by the way, in the recycling industry that want these amendments. Packaging companies with a turnover under $5 million don't have to report to the minister. The minister, when he receives reports for those businesses with turnovers of over $5 million, can look at them. If he sees that there's a problem with them meeting their targets, he can then ask for a 'please explain'. He can then go to the process of providing a direction. If they don't comply with that direction, there's still discretion at that point as to whether the minister will actually put in place the penalties, or enact the penalties, which are in this legislation.
This is based on the product stewardship scheme that already exists. There's no reinventing of the wheel here. These are very simple but extremely important amendments. If we amend this tonight, and it goes to the House, I would ask the government to consider that we've all done a good job here. We've all done our bit to try and solve the waste crisis, we've all done our bit to create Australian jobs in the recycling industry and we've all done a solid for the oceans. And the Australian people expect that. They're listening and watching tonight. I've never seen an environmental issue as big as plastic in the oceans. It cuts across everything. No-one likes it—it doesn't matter who they are—but everybody wants to do something about it. This one's very simple. I would urge senators to support these amendments. Please, let's hold the packaging industry to account; let's take what they've said they're going to do anyway, put it into law and therefore give the recycling industry the certainty they need to invest in a circular economy.
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