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Letter reveals State Government knew in November 2021 of costs to Boag’s of Container Refund Scheme

A letter Boag’s wrote to the State Government in November 2021 (attached) reveals the State Government knew back then about the additional costs that Boags would have to bear due to the State Government’s Container Refund Scheme (CRS).

The letter to Premier Peter Gutwein dated 9 November 2021, reveals that the introduction of the CRS would cost Boag’s around $8 million a year and due to the ‘for-profit’ design of the state government scheme there would be an additional cost on top of that of $1.5 million a year, making the total additional cost to Boag’s the equivalent of 10 per cent of Boag’s’ fixed operational budget.

The company has told me that they have also briefed the state government about the hugely detrimental impact of rising energy costs but nothing has happened.

The letter also points to the lack of engagement by the state government on the company’s concerns stating in the third last paragraph, “It is unfortunate that in our view the level of engagement by your government with our concerns has been dismissive. To date, we have had no substantive response to our repeatedly conveyed concerns, only public comments from the Minister which have generally reflected poorly on our business and our motives and those of the wider beverage industry”.

Boag’s is a Tasmanian icon.

It is one of the state’s most famous, loved and respected brands.

For Boag’s and its almost 80 staff to have been treated this way by the State Government is unforgivable.

The lack of engagement with such a vital and important Tasmanian company is symptomatic of a government that has lost its way.

It’s possible that if these issues are addressed Boag’s might be in a position to continue the tours.

Under Labor we would have acted straight away to deal with these issues and our power price policy would provide much-needed, immediate relief.

Michelle O’Byrne MP
Member for Bass