A German court has backed a government plan to introduce deposit charges on non-refillable cans and bottles next year, overturning an earlier ruling to block the measures in the western state of North Rhine-Westphalia.



The German government aims to introduce a deposit of 25 cents for small containers and 50 cents for cans and bottles larger than 1.5 litres from January 1. Deposits are returned when the bottles and cans are disposed of in special recycling machines.



Reuters News Service reports that a court in the federal state of North Rhine-Westphalia blocked the plans in a ruling in September, saying they did not conform with an existing law on recycling and refuse. However, the state's senior administrative court in Muenster rejected this ruling and the complaints of about 25 retail groups and drinks producers in its decision last week. The case will still go to the federal administrative court early next year.



Retailers and beverage manufacturers have long opposed the measure but the government says it is necessary because the percentage of cans and bottles being recycled - typically after being returned to the retailer - has fallen below a 72 per cent minimum target set in 1997. Opponents say industry faces start-up costs of EUR1.4 bn and running costs of EUR0.9 bn pa and lost sales if they are forced to push up prices.