The Australian Competition and Consumer Commission has issued a determination allowing an arrangement between agricultural and animal chemical manufacturers to charge a levy to fund a rural chemical waste reduction scheme.
"Agsafe Limited currently has an authorisation* in place for a program to collect and dispose of unwanted empty agricultural and veterinary chemical containers, under the drumMUSTER program", ACCC Chairman, Mr Graeme Samuel, said today.
"This determination allows Agsafe to begin funding a second program, known as ChemClear, from reserve funds collected under its existing authorisation. The ChemClear program, which provides a collection and disposal service for unwanted registered AgVet chemicals, will join the drumMUSTER program as components of Agsafe's Industry Waste Reduction Scheme.
"The ACCC considers that the introduction of the ChemClear program is likely to benefit the public by reducing stockpiles of unwanted agricultural and veterinary chemicals, and by providing a safe means of disposal for such chemicals".
A levy of four cents per litre or kilogram on eligible AgVet products sold in non-returnable chemical containers over one litre or kilogram in content is imposed by the manufacturers, and paid for by farmers. Without authorisation, the agreement may have raised concerns under the competition provisions of the Trade Practices Act 1974.
"The ACCC accepts that the imposition of the levy does constitute a detriment and has made it a condition of authorisation that Agsafe engages an independent auditor to ensure that the levy is set at an appropriate level".