Drink companies win recycling challenge

COCA-COLA has won its Federal Court challenge to the Northern Territory's cash for containers recycling scheme.

In the Federal Court in Sydney on Monday, Justice John Griffiths found in favour of three major beverage companies which had applied for the NT scheme to be declared invalid so they wouldn't have to comply with it.

Coca-Cola Amatil, Schweppes Australia and Lion Pty Ltd took the case against the NT government over the scheme, which is similar to a long-running one in South Australia and involves a 10 cent deposit on drink purchases, refundable when the container is returned to a recycling agent.

Coca-Cola increased its drink prices in NT when the scheme was introduced a year ago, and said its prices would drop if it won the court case.

Greenpeace, which had campaigned vigorously against the challenge, said the decision was a major blow for recycling in Australia and "an outrageous win for Coke's corporate self-interest".

"For a proven and effective recycling system to be ruled invalid is unacceptable and will only galvanise public support for a national recycling scheme," Greenpeace Campaigner Reece Turner said in a statement.

It was now up to other states to "stand up to Coke's bullying".

With a COAG meeting on April 11 set to decide on a national recycling refund scheme, it was vital for NSW Premier Barry O'Farrell and his Victorian counterpart Ted Baillieu to back the scheme, he said.

Speaking outside court, Jeff Angel, national convenor of the Boomerang Alliance of environmental groups, said Coca-Cola had had a "pyrrhic victory" which was only temporary.

"They took to court the Northern Territory cash for containers scheme against the wishes of the community, against the wishes of the government and in fact, the majority of Australians," Mr Angel told reporters.

"Coke have proven themselves to be a bully.

"The fact they won is simply a temporary victory.

"The NT government has already got the agreement of the other states and territories to reinstate the act through the COAG process.

"The NT will see their cash for containers scheme returned to operation."

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