Go public on lawsuit backflip, Coke told

The Northern Territory government is calling on drinks giant Coca-Cola Amatil to publicly abandon its threatened lawsuit against a proposed cash for bottles and cans law.

The company recently revealed it wanted to challenge the territory's container deposit legislation, which would be similar to a scheme that has been underway in South Australia for decades.

"That's an act that says basically if a product's legal to sell in one state, it's legal to sell in another state," a Coke spokesman said last month.

But ABC Radio reports that the company is now saying it is "working very hard to meet the requirements" of the Northern Territory scheme.

NT Environment Minister Karl Hampton said the drinks giant should alleviate all doubt by publicly announcing it would not go ahead with the legal action.

"We need Coca-Cola to be open with the Territory public and say they are no longer going to pursue court action," Mr Hampton said.

"They need to be open and transparent," he said.

The NT scheme is designed to promote recycling and reduce rubbish, and is due to kick off in January next year.

Under the planned laws, a 10c refund would be available for a range of empty containers such as bottles and cans bought in the NT.

Coca-Cola believes the refund will act as a new tax on their product and could see sales fall.

The announcement they would try to meet the requirements of the new law won faint praise from independent MP Gerry Wood, who has strongly supported the cash for containers proposal.

"If Coke have done it, terrific," Mr Wood said.

But he said he understood that under the Mutual Recognition Act, which Coke would likely rely on in any court challenge, companies were not able to take action against a law until 12 months after it had come into force.

"They can still hold off," Mr Wood said.

Mr Wood also said Coca-Cola could try to deliberately sabotage the proposed cash for containers law by making the recovery costs extremely high, pushing up the price of drinks strongly.

Spokespeople for Coca-Cola Amatil did not return calls.