The Australian Packaging Covenant, which covers some 900 companies and the state and federal governments, had set a target of recycling 70 per cent of all used packaging over the five-year plan to June 30, 2015.

However, a leaked excerpt of a review of the period found the industry would miss its recycling rate goal and recommended the council consider dropping the target.

Among the reasons for ditching the "aspirational" 70 per cent recycling goal was the discovery that the industry was "significantly" miscalculating how much plastic was being imported as more of Australia's industry headed offshore.

"Estimates indicate the potential impact to be a consumption underestimation of approximately 50 per cent in 2013-14," the review noted, citing a separate report compiled last December.

Jeff Angel, convenor of the Boomerang Alliance, an environmental group, said the reported plastics consumption last financial year was 527,000 tonnes, with a recycling rate of 44 per cent.

The imports reassessment, which appears to be confined to plastics, would cut that reuse rate to less than half the industry's overall goal.

"The [adjusted] plastic packaging recycling rate of 29 per cent is pathetic," Mr Angel said.

"The long-standing failure of the industry packaging covenant helps explain why we have such a growing problem with plastic pollution of our streets, beaches and oceans," he said. "Governments need to regulate."

Stan Moore, APC chief executive, said the review "was very much a working document", and not ready for general release by the covenant council.

"This is currently being considered by the council," Mr Moore said, adding that no decision had been made about whether to lower the 70 per cent goal in the future.

"It's an admission of defeat if they drop the target," Mr Angel said.

Steve Beaman, the NSW EPA's director of waste and resource recovery unit, said the overall national packaging recycling rate is about 64 per cent, with paper and cardboard exceeding the target at 77.3 per cent, while glass came in at 47.4 per cent.

Federal, state and territory environment ministers will meet in Melbourne on July 27, with the future of the covenant – now given a one-year extension until next July – among the agenda items, according to the NSW government.

More flak

The council also received some flak from the WA Local Government Association which this week withdrew from the APC, saying it would "focus on more meaningful waste reduction activities".

Troy Pickard, who stepped down as president of the association on Wednesday, said local government and the community ended up spending "an enormous amount every year to recycle material and collect litter".

The industry's opposition to compulsory container deposits, which offer recyclers a small payment for handing in beverage bottles and cans, was hindering the recycling effort, he said in a statement.

"To have the National Packaging Covenant Industry Association, responsible for delivering on the covenant to also be an anti-container deposit legislation industry organisation presents a fundamental conflict of interest and severely impacts on successful delivery of the covenant's aims," said Mr Pickard, who is also the mayor of Joondalup in Perth.

Mr Moore said he was disappointed by WALGA's decision to drop out of the covenant, but said all of the association's points would be addressed in time for the council's main December meeting.

Bag ban?

Greens NSW MP Mehreen Faruqi said Australia's waste problems were expanding as per capita consumption rose, increasing the use of natural resources.

"Plastics waste is a major problem, including tens of millions of plastic bags entering the environment every year causing pollution of waterways and oceans, and injuring and killing thousands of birds and marine animals," Dr Faruqi, the party's environment spokeswoman, said.

"The Greens want to ban single-use light weight plastic shopping bags to reduce consumption and protect the environment," she said, noting South Australia, ACT, Northern Territory and Tasmania had all banned plastic bags. "It's time for NSW to catch up."

Recycling push

The EPA's Mr Beaman said that while ministers would review the APC "to see how industry takes responsibility to address all packaging waste", the NSW had decided to introduce container deposits as part of a wider recycling push.

"NSW has set ambitious waste targets and is implementing the nation's largest waste investment – the $465.7 million Waste Less Recycle More initiative – to help achieve them," he said.

The money includes a $15 million recycling innovation fund, with grant applications open until 16 July, he said.