NT looking to appeal recycling court loss

THE Northern Territory government is considering appealing a Federal Court judgment that found a cash for containers scheme is invalid.

Northern Territory Chief Minister Terry Mills says his government won't give up fighting to continue the recycling scheme.

"We are intending to appeal but of course we haven't seen the judgment in detail but it is our intention to fight this," Mr Mills said following the court decision on Monday.

"We will explore every option to see whether we can keep this scheme going in the Northern Territory."

He called on the beverage industry to continue operating the NT scheme on a voluntary basis for two months so that people who have collected cans will be able to get a refund.

Prices of cans and bottles in the NT, some of which rose when the cash for containers scheme was introduced, should immediately drop, Mr Mills said.

Federal Court Justice John Griffiths found the NT's scheme was in breach of the Commonwealth Mutual Recognition Act.

The NT government would lobby within the Council of Australian Governments (COAG) to get an exemption under that Act, Mr Mills said.

Alec Wagstaff, director of corporate affairs for Coca-Cola Amatil, said the judgment meant the company could immediately move to drop prices in the Northern Territory.

"This court case was never about stopping recycling in the Northern Territory," Mr Wagstaff told reporters outside court.

"This judgment was purely a legal issue about the conflict of laws between the Northern Territory and the Commonwealth."

Coca-Cola did not believe container deposits were the best way to improve recycling in Australia and would work with the government to find other ways, Mr Wagstaff added.

"They only address a small part of the problem and they're very expensive," he said.

"Now that the court has ruled the system doesn't effectively apply, we think it's really important the consumers don't suffer."

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