Channelling of Additional Charge Collected under Beverage Container Return Scheme
Ministry of Sustainability and the EnvironmentSpeakers
Summary
This question concerns Assoc Prof Jamus Jerome Lim’s inquiry into whether the 10-cent beverage container charge offsets producer costs and why NEA or town councils receive no funding for utilities. Minister for Sustainability and the Environment Grace Fu Hai Yien clarified that the charge is a refundable deposit for consumers, not a subsidy for producers. She explained that the scheme is operated by BCRS Ltd, a not-for-profit industry consortium funded by producer fees and recyclable sales. The Minister stated that BCRS Ltd is responsible for leasing reverse vending machines and compensating town councils for utility expenses. This ensures industry-led management of container collection and recycling logistics while maintaining the deposit as a direct refund to the public.
Transcript
47 Assoc Prof Jamus Jerome Lim asked the Minister for Sustainability and the Environment (a) whether the additional 10-cent-per-bottle charge under the NEA-led Beverage Container Return Scheme is channelled to beverage producers to help offset the costs of collecting and recycling empty containers; and (b) why no such cost offset is provided to (i) NEA for funding reverse vending machines and (ii) town councils for utilities costs incurred.
Ms Grace Fu Hai Yien: The National Environment Agency (NEA) has licensed Beverage Container Return Scheme Limited (BCRS Ltd) to operate the Beverage Container Return Scheme. BCRS Ltd is an industry-led, not-for-profit company incorporated by a consortium of beverage producers.
BCRS Ltd is responsible for the collection and recycling of returned beverage containers. This includes leasing and deploying Reverse Vending Machines (RVMs), managing the logistics of collecting the empty containers and making payments to partners, such as town councils, for utility costs incurred by the RVMs. The scheme operator is funded through the producer fees it collects and through the sale of recyclables collected. The 10 cents charge per bottle referred to by the Member would be the deposit refundable to consumers who return the empty bottles to the RVMs under the scheme. Members may wish to refer to the combined reply made on 3 February 2026 when the Scheme was discussed extensively. [Please refer to "Mitigating Cost Impact on Customers with Beverage Container Return Scheme's Roll-out in April 2026", Official Report, 3 February 2026, Vol 96, Issue 15, Oral Answers to Questions section.]