‘SET UP TO FAIL’: Port Douglas Recycling owner gutted by lack of support

The owner of a Craiglie container recycling business forced to close at the end of October has said he believes he was set up to fail.

Stacy Wilkinson, who closed Port Douglas Recycling saying it was no longer sustainable, has told Newsport he did not receive support – despite being promised he would – from the statewide Container Exchange (COEX) program, which runs the ‘Containers For Change’ scheme.

COEX was appointed by the state government to run the scheme, and Mr Stacy’s business was launched when Containers For Change first started in 2018.

But just two years later, another Containers For Change was allowed to open, within just a 16-kilometre distance in Mossman, in a Shire-wide market of just 12,500 people.

Mr Wilkinson said in a detailed statement sent to us (published below): “In 2020 at time of issuing my first concerns, CoEx stated they were 'sending a team' to assist with growth and development. This did not occur,” he wrote. 

“I feel I was set up to fail, and have lost a seven figure sum of money.” 

Newsport asked COEX-Containers For Change for comment about Mr Wilkinson’s concerns that he did not receive proper support from them for his operation.

A COEX spokesperson responded, saying, “Container Exchange put forward a range of support measures to Mr Wilkinson aimed at increasing container collection volumes in his region,” adding that “these included the provision of a dedicated business development employee for the region, extra support and resources for marketing activities and additional container collection infrastructure in his local region.”  

COEX said that Mr Wilkinson “declined the offer of support and has made the decision not to renew his contract as an operator in the Containers for Change scheme.”

Mr Wilkinson clearly disputes COEX’s claim that he declined the offer of support, saying he “was then ignored of the issue until July 2023 when CoEx acknowledged that it was unlikely I would sign another 5 year contract.”

But the COEX spokesperson was adamant that support and communication was always there: “Container Exchange had regularly liaised with Mr Wilkinson to understand the challenges his business Port Douglas Recycling had been facing and to identify opportunities to provide support to potentially improve the situation,” the spokesperson said. 

“Container Exchange put forward a range of support measures to Mr Wilkinson aimed at increasing container collection volumes in his region. 

“These included the provision of a dedicated business development employee for the region, extra support and resources for marketing activities and additional container collection infrastructure in his local region.” 

Full statement to Newsport by Mr Wilkinson: 

First of all, again we apologise to the residents of Port Douglas, it was not an easy decision to make, however be assured that I understand a nearby operator has been approached and encouraged to express an interest in replacing us. 

I wish that operator all the best.

I only wish to state the following key points:

Port Douglas Recycling is not the first regional mum and dad entity to open, and subsequently close after a significant investment in the scheme. The very act itself does not create confidence. There are other past examples. It's a shame for a scheme which has so many positive outcomes.

In the cycle of business, year 5 should be seeing further investment into the business and upgrades in plant and facilities. A revenue stream should increase, and I had planned in 2020 - just prior to the opening of the other facility to address two key issues, one being noise, and the other being heat stress. The new building replaces the existing shipping containers onsite which were to be located as return points at sites in North and South Mossman, Lower Daintree, and we were also in talks with the management of a local supermarket. The result would have been 5 access points for recycling in the Douglas Shire. 

In 2016, prior to scheme commencement, Dr Steven Miles - Minister for Environment and Heritage protection wrote a discussion paper, and he states 'For a scheme to remain viable, it is important to provide an 'optimal' number of container collection points in a particular area.'

A CoEx representative was asked what that optimal number of refund points was, and their response was 'we are just going to keep on opening them.'

I wrote to CoEx asking them to clarify what process took place in the approval, to which a response was given regarding providing Mossman residents 'access to recycling.' I believe there may not be existing policy or procedure surrounding sustainability of operators. I wrote to CoEx seeking clarification of this, and no information was forthcoming.

I recently consulted with representatives at a Global Waste company, and both of those professionals suggested that 'two refund points in the shire was not likely to be successful.'

Unfortunately, CoEx have dropped the ball on their mandated target to achieve a 85% return rate. According to their website, the FY return rate was 63.5% - and with their current annual growth rate, this target is not likely to be reached in a number of years yet. As an entity losing substantial amounts of money annually, this is time I cannot wait.

In 2020 at time of issuing my first concerns, CoEx stated they were 'sending a team' to assist with growth and development. This did not occur. I was then ignored of the issue until July 2023 when CoEx acknowledged that it was unlikely I would sign another 5 year contract.

I am still yet to hear from Cynthia Lui MP for Cook, or the environment minister- the Honorable Leanne Linard, and feel it's time for the government to intervene to protect the integrity of the scheme, and the Queenslanders that invest in it. I feel I was set up to fail, and have lost a seven figure sum of money.

Kind Regards,

Stacy Wilkinson

Director

Port Douglas Recycling