Greens Senator Peter Whish-Wilson has unleashed a scathing attack on the government, however, and has declared his push for the scheme is ‘‘far from over’’.

The container deposit scheme would have seen 10¢ refunded for every container returned, reducing kerbside collection and processing costs for councils.

Research by the Local Government Association also found the scheme would save Tasmanian councils about $1 million a year.

Environment Minister Matthew Groom yesterday announced an independent report by Marsden Jacob Associates found the scheme would cost the state $10 million a year.

‘‘[The report] has found that none of the options for a container deposit scheme considered in the report would provide a net value when considering the overall cost,’’ Mr Groom said.

‘‘The report also concluded that a Tasmanian scheme would not produce enough beverage containers to establish a viable domestic recycling industry. 

‘‘This means that low-value recovered containers would still have to be shipped to the mainland for reprocessing, which would offset many environmental and economic benefits. As a result, the government has decided not to introduce a state-based scheme.’’

Senator Whish-Wilson called the decision ‘‘really weak’’ and believes the government has caved to pressure from beverage companies.

‘‘Four Corners has run entire programs about the aggressive nature of beverage companies,’’ he said.

‘‘This is an example of the government giving in due to special interests.

‘‘More than nine out of ten Australians want this scheme, it will produce just as many jobs as the pulp mill would have and better our recycling rate by 80 per cent.

‘‘There’s no way I’m giving up on this.’’