Container Exchange banks massive windfall despite missing target

The company behind the state’s key recycling scheme pocketed a multimillion-dollar windfall despite Queensland being the worst in the nation for recycling.

The company behind the state’s key recycling scheme pocketed a multimillion-dollar windfall despite Queensland being the worst state in the nation for recycling.

Container Exchange has been blasted for a lack of deposit sites across the state with the limping program missing key recycling targets the last four years in a row.

It can be revealed the company posted a $46m surplus last financial year at the same time it failed to significantly improve the rate of products returned for recycling.

The financial windfall comes despite the not-for-profit organisation again missing the target of 85 per cent of containers collected – a milestone it has not hit in four years of operation.

Container Exchange collected 63.5 per cent of bottles, cans and poppers in the 2022-23 financial year, a total of 1.9 billion items at 10c each.

While the popular scheme funnelled $166.1m into the pockets of Queenslanders last financial year, its repeated inability to hit the government-enforced target has raised questions about whether more should be done, or the contract torn up. Under legislation a failure to hit the 85 per cent target is grounds for “suspending or cancelling a company’s appointment”.

Opposition environment spokesman Sam O’Connor said while the scheme was popular, Queensland’s return rate had stagnated.

“The Palaszczuk Labor government is failing to meet its own recycling targets and has dropped the ball on a key environmental scheme,” he said. “Containers for Change has bipartisan support but the responsibility falls on the environment minister to hold Container Exchange accountable and to make sure targets are being met.”

He said the 362 container refund points across the state was too few and a major reason the recycling rate was not achieved.

“To get this scheme where it needs to be we need to see more collection points, better education campaigns and genuine partnerships with our resource recovery sector to make sure more of the items collected by Queenslanders are recycled in Queensland,” he said.

Container Exchange claimed in 2020-21 it was “on track” to hit the collection target by June 2022.

Container Exchange has failed to meet its targets. Picture: David Clark

Environment Minister Leanne Linard acknowledged the 85 per cent recovery target was “ambitious”, but she backed the company to remain the government-contracted operator.

“There is more work to be done and I am committed to working with Container Exchange, the not-for-profit company appointed to run the scheme, to further increase the rate of container recycling in Queensland and stopping containers from ending up in landfill,” she said.

“It is the government’s expectation that surplus funds are reinvested into providing greater accessibility for container returns to drive increased recycling. This includes establishing additional container refund points, introducing Container Collect services to the home and partnering with commercial building owners and the hospitality sector to collect containers.”

Queensland is the worst state in the nation for recycling and resource recovery, with only the smaller Northern Territory posting a worse result, the 2022 National Waste Report reveals. The percentage of containers collected is also the second-worst of the six states and territories with an existing refund scheme, according to the report.

Robert Hazel, 89, and his son, Cory Bumstead, 34, at the Stafford Shopping Centre Container Exchange. Picture: David Clark

Container Exchange chief executive Natalie Roach said the 7 billion containers returned since 2018 had benefited the environment.

“We know there is more work to do to encourage all people to get behind the scheme,” she said.

“That is why we are investing to reach the 85 per cent target, expanding the refund point network, introducing new initiatives to collect containers from businesses and public spaces, continuing statewide marketing and education programs and expanding the home collection trial.”

The $46m surplus posted by Container Exchange was $14m higher than the year prior. The company also holds $166m in accumulated cash, which critics say should be splashed on improving recycling programs.

On November 1 Queensland will be the first state to accept glass wine and spirit bottles into the scheme.

Waste Recycling Industry Association Queensland chief executive officer Alison Price said despite challenges, the scheme was creating widespread community benefits, but she doubted whether the ambitious 85 per cent recovery target would ever be hit.

“With the challenges of distance in Queensland, 85 per cent will be a tough target to achieve unless the community gets behind the scheme and understands the positive effect it’s having,” she said.