The cash for cans scheme was ruled invalid

The 'cash for cans' scheme was ruled invalid

A government recycling scheme in Australia's Northern Territory (NT), which has been opposed by drinks companies, could be saved after a parliamentary motion was passed.

The initiative – known as 'cash for cans' – was ruled invalid last month after Coca-Cola Amatil, Schweppes Austraila and Lion launched legal action against the measure. Under the scheme, customers pay a AUD0.10 (US$0.10) deposit, which is refunded when a can is returned to be recycled.

However, a motion from Green Party senator Peter Whish-Wilson, calling for governments across the country to "break" the legal block passed unopposed through the Australian senate on Wednesday (13 March), according to the MP's website. 

Whish-Wilson said it was "essential" that the legal loop-hole that Coca-Cola relied upon in its legal challenge was closed.

“What we’ve seen today is all senators send a clear message to Coke (Coca-Cola) that our politicians are with the people," he said. 

“A solution is now required that will create business certainty for those involved in the NT scheme while also providing for its continuing operation."

Coca-Cola Amatil had said it would cuts its prices as a result of the scheme being scrapped.