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Packaging and Labelling Packaging and Labelling REPORT NO. 49 14 February 1996 Commonwealth of Australia 1996 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, the work may be reproduced in whole or in part for study or training purposes, subject to the inclusion of an acknowledgement of the source. Reproduction for commercial usage or sale requires prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra, ACT, 2601. ISBN 0 644 36054 2 Moving towards the Productivity Commission The Federal Government, as part of its broader microeconomic reform agenda, has announced its intention to merge the Bureau of Industry Economics, the Economic Planning Advisory Commission and the Industry Commission to form the Productivity Commission. The three agencies are co-located in the Treasury portfolio so that amalgamation can begin on an administrative basis. While appropriate arrangements are being finalised, the work program of each of the agencies will continue. This report has been produced by the Industry Commission. The name change will take effect when the relevant legislation is enacted. Produced by the Australian Government Publishing Service Head Office LB2 Collins Street East MELBOURNE VIC 8003 Level 28 Collins Tower 35 Collins Street MELBOURNE VIC 3000 Telephone (03) 9653 2100 Facsimile (03) 9653 2199 14 February 1996 Canberra Office Telephone (06) 240 3200 • • • • • • • • • • • • • • • • • • • • • • • The Honourable George Gear MP Assistant Treasurer Parliament House CANBERRA ACT 2600 Dear Minister In accordance with Section 7 of the Industry Commission ACT 1989, we have pleasure in submitting to you the report on Packaging and Labelling. Yours sincerely Nicholas Gruen Maurice Joyce Presiding Commissioner Commissioner TABLE OF CONTENTS Abbreviations Glossary OVERVIEW PART A INTRODUCTION 1 Packaging and labelling in Australia 1 1.1 Scope of the inquiry 1 1.2 The benefits and costs of packaging and labelling 1 1.3 The packaging and labelling industries 3 1.4 Material inputs 5 1.5 Innovation 10 1.6 Users of packaging 11 1.7 Workforce skills and training 20 PART B COMPETITION AND PERFORMANCE 2 Assessing competition and performance 25 2.1 Competition and efficiency 25 2.2 Glass 27 2.3 Metal containers 32 2.4 Paper and board packaging 39 2.5 Plastics packaging 43 2.6 Labelling 46 V PACKAGING AND LABELLING 3 International trade issues 49 3.1 International trade in packaging 50 3.2 Tariffs on imports 52 3.3 Prospects for export growth 61 3.4 Anti-dumping 65 3.5 Trade liberalisation in foreign markets 73 4 Enhancing competition 79 4.1 Industry measures 79 4.2 Controlling concentration 83 4.3 Prices oversight 87 PART C PACKAGING WASTE MANAGEMENT 5 Packaging and waste 95 5.1 Packaging in the waste stream 95 5.2 The environmental benefits of packaging 98 5.3 The environmental costs of packaging 99 5.4 Full social cost pricing 106 5.5 Policy mechanisms 111 6 Recycling and reuse of packaging 131 6.1 Attitudes to the environment and recycling 131 6.2 Recycling 133 6.3 Waste management policy and the use of targets 135 6.4 Collection of post consumer packaging 138 6.5 Reuse 149 6.6 Costs and benefits of waste reduction and recycling targets 153 6.7 Other regulatory approaches 160 VI PART D PACKAGING AND LABELLING REGULATION 7 Packaging and labelling regulation 163 7.1 Design and responsiveness of regulation 164 7.2 Performance based regulation 166 7.3 Labelling regulation 171 7.4 Labelling standards, enforcement and international trade 190 7.5 Regulatory institutions 193 APPENDICES A Terms of reference B Inquiry procedures C International trade statistics D Tariff provisions E Waste management policies in Australia and other countries F Packaging and labelling regulation G Regulatory co-operation References VII PACKAGING AND LABELLING VIII ABBREVIATIONS ACA Australian Consumers Association ACI Australian Consolidated Industries Packaging ACCC Australian Competition and Consumer Commission (formerly the Trade Practices Commission and the Prices Surveillance Authority) ACTDG Australian Committee on the Transport of Dangerous Goods ACTU Australian Council of Trade Unions ADA Anti-Dumping Authority ADG Code Australian Code for Transport of Dangerous Goods by Road and Rail agvet Agricultural and veterinary chemicals AIP Australian Institute of Packaging ALCM Association of Liquidpaperboard Carton Manufacturers ANZEC Australian and New Zealand Environment Council ANZECC Australian and New Zealand Environment and Conservation Council APEC Asia Pacific Economic Cooperation AQIS Australian Quarantine and Inspection Service ASDA Australasian Soft Drink Association BHP Broken Hill Proprietary Company BIE Bureau of Industry Economics BRRU Business Regulation Review Unit CD Compact disc CDL Container deposit legislation CEDA Committee for Economic Development of Australia CEPA Commonwealth Environment Protection Agency CER Closer Economic Relations IX PACKAGING AND LABELLING CIDS Cleaner Industries Demonstration Scheme CIF Cost, insurance and freight COAG Council of Australian Governments CPI Consumer product information sheet CRC Co-operative Research Centre for Waste Management and Pollution Control CRR Council recycling rebate CUB Carlton and United Breweries DEST Department of the Environment, Sport and Territories DFAT Department of Foreign Affairs and Trade DHSH Department of Human Services and Health DIST Department of Industry, Science and Technology DPIE Department of Primary Industries and Energy DSD Gesellschaft Duales System Deutschland mbH EC European Commission ECA Environmental Choice Australia EIA Environmental Impact Assessment EPA Environment Protection Authority EPL Extended producer liability ESD Ecologically sustainable development FBCA Federal Bureau of Consumer Affairs FDA Food and Drug Administration of the United States of America GATT General Agreement on Tariffs and Trade GMA Grocery Manufacturers of Australia HDPE High-density polyethylene IAC Industries Assistance Commission (a predecessor to the Industry Commission) ISO Standard of the International Standards Organisation IWRA Industry Waste Reduction Agreement X KAB Keep Australia Beautiful National Association KESAB Keep South Australia Beautiful LATMA Label and Tag Manufacturers Association of Australia LCA Life Cycle Analysis LDPE Low density polyethylene LLDPE Linear low density polyethylene LRRA Litter and Recycling Research Association Mt megatonne MRF Material recovery facility NATA National Association Testing Authorities NDPSC National Drugs and Poisons Scheduling Committee NFA National Food Authority NHF National Heart Foundation NIEIR National Institute of Economic and Industry Research NRA National Registration Authority for Agricultural and Veterinary Chemicals NRS National Registration Scheme for Agricultural and Veterinary Chemicals NSC National Standards Commission NSWGPT New South Wales Government Pricing Tribunal OECD Organisation for Economic Co-operation and Development ORR Office of Regulation Review PACIA Plastics and Chemicals Industries Association PATEFA Printing and Allied Trades Employers’ Federation of Australia PCA Packaging Council of Australia PET Polyethylene terephthalate PMAA Proprietary Medicines Association of Australia PP Polypropylene XI PACKAGING AND LABELLING PSA Prices Surveillance Authority (a predecessor of the Australian Competition and Consumer Commission) PUPA Promoting the use of plastics again and again and again PVC Polyvinyl chloride RCH Rodda Castle and Hind RIA Regulatory Impact Assessment RIS Regulatory Impact Statement RMIT Royal Melbourne Institute of Technology RRRC Recycling and Resource Recovery Council SUSDP Standard for the Uniform Scheduling of Drugs and Poisons TEXCO Tariff export concession order TGA Therapeutic Goods Authority TGC Therapeutic Goods Committee TGO Therapeutic Goods Order TPA Trade Practices Act (Commonwealth) 1974 TPC Trade Practices Commission (a predecessor of the Australian Competition and Consumer Commission) UN United Nations UNESCO United Nations Educational Scientific and Cultural Organisation WMC Waste Management Council Worksafe National Occupational Health and Safety Commission XII GLOSSARY Bodystock Aluminium sheeting used for can bodies. By-product Emissions which are the outcome of a process designed emissions primarily to produce another product. Canstock Aluminium sheeting used in the production of aluminium cans, comprising bodystock, endstock and tabstock. Contract and tort The body of judge-made law which provides recource to individuals. These remedies are available as well as the remedies created by Acts of Parliament. Converting The process of transforming material inputs into a package; that is, the manufacture of packaging. For example, along with other material inputs, polymers are ‘converted’ into various forms of packaging, such as plastic films and bags. Endstock Aluminium sheeting used for can ends. Environmental Assessment of the environmental impact of a project or Impact Assessment initiative. Externalities Costs that are imposed on society as a result of production and consumption decisions by individuals and are not captured by the price system, for example, air pollution from factories and cars. Fillers User industries such as food processors that insert their product into packages. Incineration Combustion (by chemical oxidation) of waste
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