ACCC Proposes to Authorise Levy for National Paint Product Stewardship Scheme

 On 10 September 2015, the Australian Competition and Consumer Commission released its draft determination which proposes to authorise the Australian Paint Manufacturers’ Federation, Paint Stewardship Limited and certain paint manufacturers to introduce a 15 cents per litre levy (plus GST) to support a National Paint Product Stewardship Scheme.

The Federation represents paint manufacturers responsible for over 90 per cent (by volume) of paint sold in Australia. The Paint Stewardship Scheme will be a national program intended to promote the safe disposal of all waste architectural and decorative paint by both domestic and trade consumers.

“Unused, leftover or waste architectural and decorative paint often contains hazardous chemicals which can pose a risk to the environment if disposed of improperly,” ACCC Deputy Chair Delia Rickard said.

“There will be better use of resources in our society because the price of disposing paint will more accurately reflect its real cost to society.  The ACCC considers that the levy will result in environmental benefits by reducing the improper disposal of waste paint.”

The Paint Stewardship Scheme will see a significant expansion in waste paint disposal schemes. It will replace the household hazardous chemical disposal programs currently run by State and Territory governments and will also expand collection services to new fixed and mobile sites.

Mr Richard Phillips, Executive Director of the Australian Paint Manufacturers’ Federation further explains.  “The primary consumers of paint in Australia can be divided between trade and domestic consumers.  There are currently, to varying degrees, State, Territory and Local Government funded programs which can collect domestic waste A&D paint.  Most of these programs do not accept trade waste A&D paint.  Where trade waste A&D paint is accepted under these schemes, a fee is usually charged which creates a disincentive for trade users, resulting in significant, unsafe, stockpiles of trade A&D paint with intermittent disposals to landfill.”

By the end of the authorisation period, the Paint Stewardship Scheme aims to provide a collection point for waste architectural and decorative paint within a reasonable distance of 85 per cent of Australia’s population.

By introducing a levy, on their sales of architectural and decorative paint, paint manufacturers’ will be able to fund the Paint Stewardship Scheme.

The ACCC proposes to grant authorisation until 1 June 2021 and will seek submissions from interested parties before making a final decision.

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Further information about the application for authorisation is available on the ACCC website, at:

The Australian Paint Manufacturers’ Federation Inc. & Ors – Authorisation – A91504 and www.apmf.asn.au/media.

 

Media Contact

Richard Phillips

Executive Director, Australian Paint Manufacturers Federation

Phone:  02 9876 1411

Email:  richard.phillips@apmf.asn.au

 

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