Clarence Valley Metal Recyclers Pty Ltd (CVMR) has been ordered to pay $149,000 in fines by the NSW Land and Environment Court for claiming container deposit scheme (CDS) refunds for almost 3,000,000 containers for which CDS refunds had already been claimed (see Environment Protection Authority v Clarence Valley Metal Recyclers Pty Ltd).

Offending conduct

CVMR was charged with three offences.

Two of the offences related to containers that had been recovered from comingled kerbside recycling bins from Glenn Innes and Inverell and processed at Glen Industries’ MRF in Glenn Innes. CDS refunds had been paid to Glen Industries under the CDS MRF Protocol in relation to these containers.

Thie third offence related to containers that had been collected from reverse vending machines (RVMs) by TOMRA Cleanaway and sent to Glen Industries. CDS refunds had already been paid directly to consumers in relation to these containers when they were processed through the RVMs.

CVMR is a scrap metals / materials merchant and recycler. In mid 2020, Glen Industries and CVMR entered into an agreement under which CVMR purchased containers from Glen Industries for reuse and recycling only. Glen Industries initially sent the containers to CVMR in crushed form. From October 2020, at CVMR’s request, Glen Industries commenced sending containers to CVMR in uncrushed form.

Sell & Parker operate a CDS collection point in Coffs Harbour known as the Coffs Harbour Automated Depot (CHAD). CHAD accepted bulk loads of eligible containers (greater than 500 at a time) from consumers and commercial customers. Between July 2020 and June 2021, CVMR presented almost 3,000,000 of the containers it had purchased from Glen Industries to CHAD and received almost $300,000 in CDS refunds for those containers.

Penalties imposed

The NSW EPA initially brought the three charges in the Coffs Harbour Local Court. CVMR pleaded guilty to all three offences and was fined $45,000 in total by the Local Court. The EPA appealed that decision to the NSW Land and Environment Court on the basis that the penalty was manifestly inadequate.

The Land and Environment Court found that the sentencing process in the Local Court had miscarried and imposed orders requiring CVMR to pay fines of $149,000 in total, together with more than $29,000 in investigation costs plus the EPA’s legal costs.

The EPA has said that it has since implemented heightened monitoring procedures to prevent abuse of the NSW Return and Earn system.

Jennifer Hughes, Zara Horton

This material has been produced by Beatty Hughes & Associates for the purposes of providing general information and does not constitute legal advice.