THE Northern Territory government intends to appeal a court decision that found its cash-for-containers recycling scheme was invalid.
Northern Territory Chief Minister Terry Mills says his government won't give up fighting to continue the recycling scheme.
"We are intending to appeal but of course we haven't seen the judgment in detail, but it is our intention to fight this," Mr Mills said after the court decision on Monday.
"We will explore every option to see whether we can keep this scheme going in the Northern Territory," he said.
In the Federal Court in Sydney, Justice John Griffiths found in favour of three major beverage companies which had applied for the NT scheme to be declared invalid so they wouldn't have to comply with it.
Coca-Cola Amatil, Schweppes Australia and Lion Pty Ltd brought the case against the NT government.
The NT's cash-for-containers scheme was similar to a long-running one in South Australia in which consumers pay a 10-cent deposit on drink purchases, refundable when the container is returned to a recycling agent.
Mr Mills called on beverage companies to continue the scheme on a voluntary basis for two months to allow people who had collected containers to have them redeemed.
Coca-Cola increased its drink prices in NT when the scheme was introduced a year ago, and on Monday said it expected wholesale prices in the NT should drop 12 to 15 cents per bottle within the week.
Coke's director of corporate affairs, Alec Wagstaff, said Mr Mills' call for the company to continue the scheme voluntarily raised complex legal issues and would be no simple matter.
He said Coke would, however, give time for people in the NT to get back the deposits they had already paid.
Greenpeace, which had campaigned vigorously against the challenge, said the court decision was a major blow for recycling in Australia and "an outrageous win for Coke's corporate self-interest".
"For a proven and effective recycling system to be ruled invalid is unacceptable and will only galvanise public support for a national recycling scheme," Greenpeace campaigner Reece Turner said in a statement.
It was now up to other states to "stand up to Coke's bullying".
With a COAG meeting on April 11 set to decide on a national recycling refund scheme, it was vital for NSW Premier Barry O'Farrell and his Victorian counterpart Ted Baillieu to back the scheme, he said.
It is understood the federal government supports the NT's efforts to be given an exemption under the Mutual Recognition Act, the act which the successful challengers relied on.
Mr Mills said all other members of COAG also backed the move.
National convenor of the Boomerang Alliance of environmental groups, Jeff Angel, said outside court that Coca-Cola had had a "pyrrhic victory" that was only temporary.
"They took to court the Northern Territory cash-for-containers scheme against the wishes of the community, against the wishes of the government and in fact, the majority of Australians," Mr Angel told reporters.
"Coke have proven themselves to be a bully," he said.
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