Container deposit scheme Victoria: Beer price rise reported after program launch

Victorian beer drinkers have reported “excessive” price increases for a slab of beer with fears companies are trying to profit from the state’s container deposits scheme.

The first day of the Victorian container deposit scheme at Newcomb. Picture: Alison Wynd

The Victorian government is being urged to investigate drink price increases following the launch of the state’s container collection scheme.

The new program, which refunds 10 cents for eligible containers, was expected to add about 12.5 cents per item.

However, some Victorians have reported excessive price rises, including slabs of beer costing $10 more at some retail outlets.

Concerns that companies may be using the launch of the state CDS scheme to raise prices for profit has prompted Reloop Pacific director Robert Kelman to write to Environment Minister Steve Dimopoulos calling for an independent review.

“NSW and Queensland both undertook consumer pricing reviews subsequent to the introduction of their schemes,” the letter said.

Environment Minister Steve Dimopoulos. Picture: David Crosling

“For the sake of Victorian consumer assurance, Reloop is suggesting the Victorian government should undertake a similar pricing review, ensure

against any possible price gouging and assure consumers of the actual costs of the introduction of this scheme in Victoria.”

Mr Kelman told the Herald Sun that the recycling organisation was supportive of CDS scheme but was concerned by the growing reports of price housing from the public.

He warned that any unnecessary price increases in the current inflationary climate would result in people losing faith in the scheme.

“It’s great that Victoria has come online with the rest of the country,” he told the Herald Sun.

“However, this is a state government designed scheme and they have responsibility to make sure that the consumers are being treated fairly,” he said.

“These are big companies and retail outlets that are very powerful, so there needs to be a mechanism that protects the consumer.”

Liberal spokesman James Newbury said opposition electorate officers had received a high volume of complaints. Picture: Luis Enrique Ascui

VicReturn, the body that runs the scheme on behalf of the government, declined to comment.

A Victorian government spokesman declined to comment on whether a review would be carried out, but said: “Drink prices are set by the beverage industry – Victorians expect businesses to support keeping their waste from ending up in the environment or landfill without putting more pressure on the cost of living.

It’s recommended that anyone who believes they have experienced an excessive or unreasonable price increase to contact the retailer and beverage company, or lodge a complaint on the Consumer Affairs Victoria website.

Liberal spokesman James Newbury said opposition electorate officers had already received large volumes of complaints.

He supported an independent review.

“We are in a cost of living crisis and can see staggering cost increases across numerous drinks at a time when people can least afford it,” he said.

“It isn’t good enough for the Labor government to keep saying that price gouging isn’t their problem.”