October 26, 1998
Works and Utilities Committee
City of Toronto
Metro Hall
55 John St., 7th Floor
Toronto, Ontario
M5V 3C6
Dear Works and Utilities Committee Members:
I am writing to express the Citizens' Network on Waste Management's strong support for the City of Toronto in its quest to implement its proposed deposit-return by-law for liquor and wine containers to become effective January 1, 1999.
Toronto Has Made a Major Contribution to Public Support for Deposit-Return
Over the last two years the Citizens' Network on Waste Management has been working with the City of Toronto as well as other municipalities, businesses and environmental groups to bring about a deposit-return for beverage containers. More than 84% of the population of Ontario, as expressed through the passage of council resolutions by 270 municipalities including the City of Toronto, support deposit-return systems for beverage containers. They do so because of the economic and environmental benefits to municipalities and their taxpayers. In addition to municipal support, 45 environmental/citizen groups and 16 companies/industry groups have written to the Province to express their support.
The City of Toronto has played an instrumental role in garnering this support. The City has planned and hosted two seminars on these issues. It has conducted the most comprehensive financial analysis of the implications of deposit-return that any city has carried out to date, and it has taken a leadership role in finding progressive ways to implement deposit-return systems for beverage containers such as the proposed by-law for liquor and wine containers.
Deposit-Return for Wine and Liquor Will Save the City $1,000,000 a Year
Toronto's financial analysis of a deposit-return system on liquor and wine bottles demonstrated that the City would save $1,000,000 a year, and would save $4.75 million a year if a comprehensive deposit-return system for beverage containers were put in place. Based on these economics, it would be surprising to find anyone advocating acceptance of a one-year settlement of $700,000. At best this is an annual losing proposition of $300,000 per year to the taxpayers of Toronto. At worst, it represents a one-time subsidy of $700,000 and a loss of $300,000, and forgoing $1,000,000 in savings in each subsequent year. Furthermore, unlike a deposit-return system, the provincial subsidy will have no impact on improving the recovery and diversion rate of the Blue Box.
The General Manager's report to your committee implies that the City would be receiving $700,000 to $800,000 in annual funding which could rise to $4M per year in 2000 and beyond. There is no evidence to support that any additional money would flow to Toronto or any other municipality beyond the initial first-year grant. Minister Sterling's proposal envisages the creation of a waste diversion organization that would provide financing based solely on voluntary contributions from food, beverage and consumer product industries, newspapers and the LCBO. It is naïve to believe industry will make long-term voluntary payments when their direct competitors whether domestic or foreign gain a competitive advantage by not participating.
Previous voluntary funding mechanisms have not worked. A 1994 survey by the Association of Municipal Recycling Coordinators found that Ontario Multi-Material Recycling Inc., now Corporations Supporting Recycling (CSR), owed municipalities $3.5 million in voluntary financial contributions. My understanding is that the City of Toronto has also experienced difficulties in the past in collecting on promised funding.
Toronto Should Go Forward and Implement the Deposit-Return By-law
The City of Toronto should remain steadfast in its determination to implement a deposit-return by-law for wine and liquor containers. Municipalities and citizens across the Province respect Toronto's leadership role on this important issue.
Instead of accepting a partial subsidy, now is a crucial time to remain firm in your commitment to deposit-return and to remember the overwhelming public support for the City's proposed by-law.
In closing, I urge you to look into the future and do what is best over the long-term for Toronto taxpayers, for Toronto's Blue Box program, for Toronto's waste management system, and for the environment.
Sincerely,
John Jackson
Coordinator
