Clarence Valley Metal Recyclers hit with $149,000 in fines, legal costs over Return and Earn recycling rort: EPA

In a first for NSW, a North Coast business has now been ordered to pay almost $150,000 for exploiting a popular statewide recycling scheme. Here’s how it happened.

A South Grafton business has been busted defrauding the popular Return and Earn recycling scheme by double counting almost three million containers.

Clarence Valley Metal Recyclers (CVMR) has now been ordered to pay more than $149,000 in fines and legal costs for cheating the statewide scheme in a first for New South Wales.

CVMR claimed the refund at the Coffs Harbour automated depot, between Bunnings and Coffs Harbour Base Hospital, when it knew that the containers had previously been processed at a facility in Glen Innes, it was previously reported.

The Coffs Harbour automated recycling depot on the Pacific Highway.

Now, the NSW Environment Protection Authority’s (EPA) has carried out its first prosecution regarding the Return and Earn Scheme under the NSW Waste Avoidance and Resource Recovery Act 2001, according to a public statement.

The fine was handed down in the Land and Environment Court this month after the EPA appealed a sentence imposed by a local court last year, on the grounds fines totalling $45,000 were considered unreasonably low and an insufficient deterrent.

EPA acting executive director Arminda Ryan said the fraudulent activity was uncovered by detailed monitoring and audits at recycling facilities, which revealed anomalies.

“The Return and Earn scheme is one of the best recycling schemes in the world and it is very disappointing that someone would take advantage of that and return containers they know are ineligible, as well as containers that had already received a refund,” she said.

“To protect the integrity of the scheme containers are closely monitored, and this will continue to help us root out fraudulent behaviour from individuals and companies.”

The company reaped the benefits of the rort – for a time.

CVMR pleaded guilty last year to “double-dip” offences after it paid Glen Industries $57,000 for 66 tonnes of recyclable containers that had already been returned and refunded.

The containers were then resubmitted through Return and Earn, along with another 33 tonnes of non-eligible containers, at the Coffs Harbour automated depot.

During re-sentencing, the court said CVMR’s conduct was carried out systematically over a period of time and there was significant financial benefit.

Ms Ryan said heightened monitoring procedures have been put in place to prevent further abuse of the recycling scheme.

CVMR is required to pay the EPA more than $29,000 in investigation and legal costs related to local court proceedings, as well as legal costs for the appeal.

The NSW government states Return and Earn is the largest litter reduction scheme to have been introduced in NSW.

The government initiative is funded by contributions from the beverage industry.

It offers a 10c refund for depositing eligible drink containers at return points.

The government states more than four billion containers have been collected since the scheme launched on December 1, 2017.

Originally published as Clarence Valley Metal Recyclers hit with $149,000 in fines, legal costs over Return and Earn recycling rort: EPA