The NSW government’s Return and Earn scheme, which has already seen more than eight billion containers returned, is set to expand to include glass wine and spirits bottles and larger containers under proposed changes.

However, the announcement was met with heated criticism from the NSW wine industry, which claimed the scheme would be nothing more than a tax for an industry already beset with financial challenges.

“The total lack of engagement from the NSW EPA and [Environment] Minister Griffin is very disappointing,” NSW Wine Industry Association (NSW Wine) President Mark Bourne said.

“This ill-informed proposal, after zero consultation with industry, does not outline in any way how it will further drive a circular economy and has family-owned NSW wineries footing the bill to the tune of over $30m per year.”

In statement released by NSW Wine and Australian Grape & Wine, the groups said the industry was coming off the back of four incredibly hard years, battling the effects of drought, bushfires and smoke, COVID-19 shutdowns, floods, and crippling export tariffs into China.

“Make no mistake, jacking up costs for wine producers in the Hunter, Riverina, Southern Highlands, Orange, Mudgee and beyond – the majority of them small and medium sized family businesses – will send some of them to the wall,” the statement said.

The proposed expansion to the scheme comes as the NSW government looks to increase its recycling capacity.

Minister for Environment James Griffin said public consultation is now open on the planned expansion, which would see up to an additional 400 million eligible bottles recycled each year, including 233 million glass bottles.

“We already accept beer, cider and a range of other beverage containers through Return and Earn, and now we are looking to include glass wine and spirits bottles and larger drink containers,” Griffin said.

“Return and Earn began as a litter reduction tool, and since then, it’s become incredibly popular with almost 80 per cent of adults in NSW having used the scheme, which has more than 620 return points across the State.

“Since Return and Earn began in 2017, more than eight billion containers have been returned, delivering $800 million in refunds to the people of NSW, more than $35 million in donations to community groups and charities, and helping us reduce drink container litter by a massive 52 per cent.”

While the bodies said they were supportive of measures to increase the recycling capabilities of the state, they said adding wine bottles to the Container Deposit Scheme (CDS) wouldn’t increase the amount of glass being recycled and would instead add an additional cost to producers in the state.

“To be clear, NSW Wine supports efforts to improve recycling, but expanding the scope of the CDS (Container Deposit Scheme) to include wine bottles just doesn’t stack up on any level,” the statement said.

“For example, why is the Government whacking one of our great export industries and regional employers with a giant tax when its own research tells them a fourth kerbside bin for glass, which is being rolled out in Victoria, delivers greater environmental benefits?

“And where is the data in the consultation papers outlining the true cost to NSW winemakers, which NSW Wine estimates to be over $30m per year.”

Minister Griffin said the plan would be a boon for communities and businesses and would reduce the amount of waste ending up in landfill.

The NSW Environment Protection Authority will be holding targeted stakeholder information sessions and webinars in the coming months around NSW so a transition can be as smooth as possible for new suppliers to the scheme.

Consultation is now open on the Scheme’s expansion, which would see almost all beverage containers between 150 ml and 3 litres accepted for refund.

The industry bodies were steadfast in their opposition to the proposed plan and said the NSW government and opposition should “put this plan in the trash can where it belongs.”

“After the Minister presented the plan as a fait accompli, we call on the Government to go back to the drawing board and undertake genuine consultation with industry,” the statement concluded.

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