Tariff on glass could cut some businesses deep

Breweries says a new tariff on glass imports could push up the price of wine and beer and other food and drink that comes packaged in glass.

The tariff is aimed at encouraging businesses to buy their glass locally, but breweries are not happy as some are locked into long-term contracts.

Lyn Mayes from the Glass Packaging Forum told ONE News the tariff is a "relic of a bygone era". It used to be in place, and has just been reinstated by the government.

"No one thought it would come back in. The government is saying at the moment that they won't review tariffs until 2015. We'd like them to have a look at it now."

She said contracts were signed without knowing the tariff would come back.

"We'd like the money back please. Because we don't want to pass it on to consumers because we don't think they want to pay more," was her message to the government.

Recycling company O-I is set to benefit from the arrangement. It has been cranking out bottles for the past month at its factory in the Auckland suburb Penrose to improve supply of local bottles to the market.

The company has spent $125 million on its New Zealand operation, which has also created 40 jobs.