1 00:00:02,840 --> 00:00:05,160 Speaker 1: My name is Lily Maddon and I'm a proud Arunda 2 00:00:05,400 --> 00:00:10,160 Speaker 1: Bungelung Calcottin woman from Gadigol Country. The Daily oz acknowledges 3 00:00:10,240 --> 00:00:12,440 Speaker 1: that this podcast is recorded on the lands of the 4 00:00:12,440 --> 00:00:16,000 Speaker 1: Gadighl people and pays respect to all Aboriginal and Torres 5 00:00:16,120 --> 00:00:18,919 Speaker 1: Right island and nations. We pay our respects to the 6 00:00:18,960 --> 00:00:21,720 Speaker 1: first peoples of these countries, both past and present. 7 00:00:27,040 --> 00:00:29,680 Speaker 2: Good morning and welcome to the Daily os It's Thursday, 8 00:00:29,680 --> 00:00:30,520 Speaker 2: the second of March. 9 00:00:30,680 --> 00:00:32,080 Speaker 3: I'm Zara, I'm sam. 10 00:00:32,120 --> 00:00:36,360 Speaker 2: The soft plastic recycling program formerly used by big supermarkets 11 00:00:36,400 --> 00:00:39,879 Speaker 2: here in Australia has folded following a period of difficulties 12 00:00:39,920 --> 00:00:40,519 Speaker 2: for the company. 13 00:00:40,720 --> 00:00:44,000 Speaker 4: Recycling scheme. Red Cycle has been ordered to be wound 14 00:00:44,040 --> 00:00:46,720 Speaker 4: up by the New South Wales Supreme Court after failing 15 00:00:46,720 --> 00:00:50,600 Speaker 4: to pay storage fees for thousands of tons of plastics 16 00:00:50,640 --> 00:00:52,640 Speaker 4: secretly stockpiled around the country. 17 00:00:52,800 --> 00:00:56,120 Speaker 2: It led to big outbursts from customers who believe that 18 00:00:56,160 --> 00:00:59,360 Speaker 2: their recycled goods were going to a better voice. So 19 00:00:59,400 --> 00:01:03,000 Speaker 2: what exactly went wrong with this soft plastics recycling scheme 20 00:01:03,080 --> 00:01:05,679 Speaker 2: and what does it mean for the future of Australia's 21 00:01:05,680 --> 00:01:08,280 Speaker 2: plastic waste. Well, we're going to tell you everything you 22 00:01:08,319 --> 00:01:10,959 Speaker 2: need to know in the deep dove, but first the headlines. 23 00:01:15,680 --> 00:01:18,399 Speaker 3: Opposition leader Peter Dudden has hit back at the federal 24 00:01:18,440 --> 00:01:21,440 Speaker 3: government's proposed plans to raise the taxes for those with 25 00:01:21,520 --> 00:01:25,160 Speaker 3: over three million dollars in their superannuation accounts. He says 26 00:01:25,200 --> 00:01:29,120 Speaker 3: it creates a completely unacceptable level of uncertainty for Australians. 27 00:01:29,560 --> 00:01:32,120 Speaker 3: Dunne said the Opposition would oppose the move and accuse 28 00:01:32,160 --> 00:01:34,000 Speaker 3: the government of breaking an election promise. 29 00:01:36,600 --> 00:01:39,759 Speaker 2: The value of Australian homes declined by zero point one 30 00:01:39,840 --> 00:01:43,000 Speaker 2: four percent in February. That's the smallest decline since the 31 00:01:43,080 --> 00:01:46,000 Speaker 2: RBA began consecutive rises to the cash rate in May 32 00:01:46,080 --> 00:01:48,680 Speaker 2: last year. It's unclear whether this is a sign that 33 00:01:48,760 --> 00:01:51,240 Speaker 2: the period of falling prices is coming to an end 34 00:01:51,400 --> 00:01:53,840 Speaker 2: or whether this is just a pause with further declines 35 00:01:53,880 --> 00:01:54,360 Speaker 2: on the way. 36 00:01:56,000 --> 00:01:58,280 Speaker 3: The Chinese government has hit back at a ban on 37 00:01:58,320 --> 00:02:02,480 Speaker 3: TikTok for all US government devices amid national security fears. 38 00:02:02,960 --> 00:02:05,480 Speaker 3: They say the US is abusing its state power through 39 00:02:05,520 --> 00:02:08,720 Speaker 3: the measure. The ban comes amid similar moves in Canada 40 00:02:08,760 --> 00:02:11,560 Speaker 3: and the European Union, with the Chinese government accusing the 41 00:02:11,680 --> 00:02:15,360 Speaker 3: US of creating a discriminatory environment for foreign companies in 42 00:02:15,400 --> 00:02:17,720 Speaker 3: the American market. 43 00:02:18,520 --> 00:02:22,200 Speaker 2: And some good news for your Thursday. The UK's electricity 44 00:02:22,240 --> 00:02:25,680 Speaker 2: grid produced one hundred percent clean energy for a record 45 00:02:25,720 --> 00:02:29,079 Speaker 2: breaking twenty five hours in December. That's according to new 46 00:02:29,120 --> 00:02:33,320 Speaker 2: analysis from the Imperial College London. This included wind, solar 47 00:02:33,360 --> 00:02:36,720 Speaker 2: and hydro energy, with the energy sources also combining to 48 00:02:36,760 --> 00:02:39,840 Speaker 2: break the record for the amount of clean surplus power produced. 49 00:02:44,760 --> 00:02:48,519 Speaker 2: The soft plastics recycling program used by Coals and Woolies 50 00:02:48,560 --> 00:02:52,440 Speaker 2: in Australia has entered liquidation. So it was declared and solvent, 51 00:02:52,880 --> 00:02:55,680 Speaker 2: unable to pay its debts, and now it is folding. 52 00:02:56,360 --> 00:02:58,400 Speaker 2: The business will be forced to sell off its assets 53 00:02:58,440 --> 00:03:01,480 Speaker 2: to try and cover its outstanding debt before it closes down. 54 00:03:01,760 --> 00:03:04,880 Speaker 3: Let's start with the company itself. What's their name? How 55 00:03:04,880 --> 00:03:06,400 Speaker 3: did they find themselves in this position? 56 00:03:06,880 --> 00:03:09,960 Speaker 2: So the company we are referring to here is Red Cycle, 57 00:03:10,200 --> 00:03:15,239 Speaker 2: and it coordinated a recycling program specifically for soft plastics. 58 00:03:15,800 --> 00:03:18,480 Speaker 2: So the way it worked was that things like plastic bags, 59 00:03:18,520 --> 00:03:22,200 Speaker 2: bubble wrap and food packaging, things that can't be recycled 60 00:03:22,200 --> 00:03:27,440 Speaker 2: through normal recycling bins could be recycled through this specialized program. 61 00:03:27,720 --> 00:03:30,520 Speaker 2: It's been the only return to store soft plastics program 62 00:03:30,560 --> 00:03:32,960 Speaker 2: in Australia, so that basically means that you could take 63 00:03:33,040 --> 00:03:35,880 Speaker 2: back your soft plastics to the store you originally purchased 64 00:03:35,880 --> 00:03:39,360 Speaker 2: it from. The scheme was fairly widespread. It was running 65 00:03:39,400 --> 00:03:42,480 Speaker 2: in two thousand supermarkets across the country, as I said, 66 00:03:42,520 --> 00:03:45,400 Speaker 2: originally in Woolies and Coals, but then more recently also 67 00:03:45,560 --> 00:03:47,920 Speaker 2: in Aldi. And the way that it was supposed to 68 00:03:47,960 --> 00:03:51,600 Speaker 2: work was that the plastics collected by Red Cycle were 69 00:03:51,640 --> 00:03:55,560 Speaker 2: processed at special facilities and then they were used to 70 00:03:55,600 --> 00:04:00,000 Speaker 2: create recycled products things like outdoor furniture and shopping. True. 71 00:04:00,640 --> 00:04:04,120 Speaker 2: Red Cycle claims it saved over five point four billion 72 00:04:04,160 --> 00:04:07,720 Speaker 2: pieces of soft plastic from landfill through the process. But 73 00:04:07,920 --> 00:04:11,040 Speaker 2: of course, foreshadowing in the opening here, it hasn't been 74 00:04:11,120 --> 00:04:12,720 Speaker 2: smooth sailing to say the least. 75 00:04:12,760 --> 00:04:14,440 Speaker 3: What happened here? Where did this all go wrong? 76 00:04:14,520 --> 00:04:17,799 Speaker 2: Well, according to Red Cycle, things started to go south 77 00:04:17,880 --> 00:04:21,040 Speaker 2: for the company during the pandemic. So they say that 78 00:04:21,200 --> 00:04:24,040 Speaker 2: online shopping was booming, as we'd all know, and as 79 00:04:24,080 --> 00:04:27,360 Speaker 2: a result, people were contributing more and more soft plastic 80 00:04:27,440 --> 00:04:31,560 Speaker 2: than ever before. Red Cycle claims that collection volumes actually 81 00:04:31,560 --> 00:04:35,520 Speaker 2: increased three hundred and fifty percent on its twenty nineteen intake, 82 00:04:35,680 --> 00:04:39,240 Speaker 2: and that Ozzie's were returning nearly five million pieces of 83 00:04:39,279 --> 00:04:42,080 Speaker 2: soft plastics every single day. That is a lot of 84 00:04:42,080 --> 00:04:44,760 Speaker 2: soft plastic. But at the same time as all of 85 00:04:44,800 --> 00:04:48,400 Speaker 2: this was happening, as the intake was being increased, Red 86 00:04:48,440 --> 00:04:51,000 Speaker 2: Cycle was actually struggling to find partners who wanted to 87 00:04:51,040 --> 00:04:55,240 Speaker 2: take on that extra plastic. And so with any economic issue, 88 00:04:55,320 --> 00:04:57,440 Speaker 2: there is always a problem if there is more supply 89 00:04:57,640 --> 00:05:00,400 Speaker 2: than demand, and so there were very few parts partners 90 00:05:00,440 --> 00:05:02,760 Speaker 2: at that stage who will bind the soft plastics off 91 00:05:02,760 --> 00:05:05,279 Speaker 2: Red Cycle, and that was made even worse in June 92 00:05:05,320 --> 00:05:07,760 Speaker 2: of last year when a fire broke out at one 93 00:05:07,800 --> 00:05:10,360 Speaker 2: of the few partner facilities of Red Cycle that were 94 00:05:10,400 --> 00:05:14,240 Speaker 2: actually left. The Hume Highway was shot in both directions 95 00:05:14,279 --> 00:05:17,400 Speaker 2: last night after a recycling facility in Somerton went up 96 00:05:17,440 --> 00:05:20,560 Speaker 2: and flamed. The factory that went up in flames was 97 00:05:20,839 --> 00:05:23,920 Speaker 2: a closed the loop facility who Red Cycle were highly 98 00:05:23,920 --> 00:05:26,880 Speaker 2: dependent on for taking a majority of its plastic stock 99 00:05:27,160 --> 00:05:29,800 Speaker 2: to turn into Ashville, and so the loss of that 100 00:05:29,839 --> 00:05:33,640 Speaker 2: facility to a fire essentially pushed Red Cycle over the 101 00:05:33,720 --> 00:05:36,840 Speaker 2: edge and over the economic edge at least so in 102 00:05:36,920 --> 00:05:40,280 Speaker 2: November of last year, Red Cycle announced it was suspending 103 00:05:40,360 --> 00:05:44,679 Speaker 2: its soft plastics collection program after the nine newspapers revealed 104 00:05:44,680 --> 00:05:48,840 Speaker 2: that Red Cycle was actually stockpiling plastics instead of recycling them. 105 00:05:49,279 --> 00:05:51,599 Speaker 2: We've since learned that Red Cycle has more than five 106 00:05:52,080 --> 00:05:55,719 Speaker 2: two hundred tons of soft plastic stockpiled at fifteen sites 107 00:05:55,760 --> 00:05:59,080 Speaker 2: here in New South Wales, at about fourteen stockpile sites 108 00:05:59,120 --> 00:06:03,159 Speaker 2: in Victoria, so very clearly not an isolated incident. 109 00:06:03,680 --> 00:06:06,520 Speaker 3: And now the Red Cycle has suspended its operations and 110 00:06:06,560 --> 00:06:11,240 Speaker 3: we've almost discovered these almost thirty sites across New South 111 00:06:11,240 --> 00:06:13,480 Speaker 3: Wales and Victoria. What are the next steps from here? 112 00:06:13,960 --> 00:06:16,960 Speaker 2: When Red Cycle was suspended, a task force was set 113 00:06:17,000 --> 00:06:19,800 Speaker 2: up by the supermarkets involved to try and make a 114 00:06:19,839 --> 00:06:23,080 Speaker 2: plan going forward, and one of the outcomes from the 115 00:06:23,160 --> 00:06:27,039 Speaker 2: task force was that Coals and Woolies have now taken responsibility. 116 00:06:27,160 --> 00:06:30,720 Speaker 2: Four Red Cycles stockpiled soft plastics in an attempt to 117 00:06:30,760 --> 00:06:33,320 Speaker 2: basically avoid it being sent to landfill, so they're now 118 00:06:33,360 --> 00:06:37,279 Speaker 2: taking on that responsibility. The New South Wales EPA, which 119 00:06:37,360 --> 00:06:41,200 Speaker 2: is the state's environmental protection agency, has warned they're watching 120 00:06:41,279 --> 00:06:44,839 Speaker 2: how the supermarkets now manage those stockpiles. In their eyes, 121 00:06:44,880 --> 00:06:48,040 Speaker 2: they're really trying to avoid a potential fire risk, and 122 00:06:48,120 --> 00:06:50,880 Speaker 2: remember that is a very real risk. We've already heard 123 00:06:50,880 --> 00:06:53,719 Speaker 2: about a fire happening at one of Red Cycle's partner 124 00:06:53,760 --> 00:06:57,000 Speaker 2: facilities in the past. A statement from Woolies said that 125 00:06:57,160 --> 00:07:01,320 Speaker 2: both Woolwards and Coals have been engaging in constructive conversations 126 00:07:01,560 --> 00:07:04,320 Speaker 2: with the environmental agencies in each of the states to 127 00:07:04,640 --> 00:07:07,200 Speaker 2: ensure that the right thing is done. From here, I 128 00:07:07,200 --> 00:07:08,839 Speaker 2: think we'll have to wait and see what kind of 129 00:07:08,839 --> 00:07:11,560 Speaker 2: plan the retailers come up with, to see whether the 130 00:07:11,600 --> 00:07:14,400 Speaker 2: EPA here in New South Wales and certainly across the 131 00:07:14,400 --> 00:07:17,680 Speaker 2: country will be satisfied with the risk of storage and 132 00:07:17,720 --> 00:07:20,480 Speaker 2: that real risk of fire. We said that's in the 133 00:07:20,520 --> 00:07:23,080 Speaker 2: short term, but I think it'll also be interesting to 134 00:07:23,080 --> 00:07:26,640 Speaker 2: see what the long term solutions being proposed are once 135 00:07:26,640 --> 00:07:29,360 Speaker 2: the stockpile has been addressed. There's also the question of 136 00:07:29,600 --> 00:07:31,680 Speaker 2: what we'll fill the gap that has now been left 137 00:07:31,720 --> 00:07:32,440 Speaker 2: by Red Cycle. 138 00:07:33,280 --> 00:07:35,560 Speaker 3: We're going to take a short break, we'll be right back. 139 00:07:41,280 --> 00:07:44,240 Speaker 3: So Red Cycles failed, there's a copious amount of soft 140 00:07:44,240 --> 00:07:46,120 Speaker 3: plastics that no one really knows what to do with. 141 00:07:46,360 --> 00:07:49,040 Speaker 3: Willworths and Coals are working on a plan. This is 142 00:07:49,040 --> 00:07:50,960 Speaker 3: a really hard story for people who have been trying 143 00:07:51,000 --> 00:07:52,040 Speaker 3: to do the right thing. 144 00:07:52,560 --> 00:07:55,160 Speaker 2: It is and I think that when we have conversations 145 00:07:55,200 --> 00:07:58,120 Speaker 2: like this about recycling, it can be really difficult and 146 00:07:58,160 --> 00:08:01,200 Speaker 2: really demoralizing because it feels like the things that you 147 00:08:01,280 --> 00:08:04,760 Speaker 2: and I are doing everyday people are doing, of returning 148 00:08:04,800 --> 00:08:08,000 Speaker 2: soft plastics or trying to do the right recycling things 149 00:08:09,200 --> 00:08:12,360 Speaker 2: is for nothing. But in this case, there has been 150 00:08:12,440 --> 00:08:16,200 Speaker 2: a structural breakdown. This isn't a matter of you know, 151 00:08:16,600 --> 00:08:19,200 Speaker 2: normal people doing bad things. It's a matter of the 152 00:08:19,280 --> 00:08:22,880 Speaker 2: system actually not working, and that burden falls on the 153 00:08:22,920 --> 00:08:26,600 Speaker 2: retailers who are making them available, It falls on the manufacturers, 154 00:08:26,640 --> 00:08:30,000 Speaker 2: and it falls on government and so together there's going 155 00:08:30,040 --> 00:08:32,120 Speaker 2: to have to be a plan to fill the void 156 00:08:32,120 --> 00:08:33,719 Speaker 2: that Red Cycle has left. 157 00:08:35,600 --> 00:08:38,080 Speaker 3: Thank you for joining us on the Daily Ods this morning. 158 00:08:38,360 --> 00:08:41,040 Speaker 3: If you learn something from today's episode, don't forget to 159 00:08:41,080 --> 00:08:43,760 Speaker 3: hit subscribe. So there's a TDA episode waiting for you 160 00:08:43,840 --> 00:08:46,840 Speaker 3: every morning. We'll be back again tomorrow. Until then, have 161 00:08:46,920 --> 00:08:56,480 Speaker 3: a great day.