The NSW government will introduce cash for containers recycling, with Premier Mike Baird writing to the beverages industry last week to invite companies to get on board and help clean up the state's beaches, parks and rivers.

One in three pieces of litter in Australia is a drinks container, but industry has until now fiercely opposed the introduction of container deposits, claiming it would cost jobs.

NSW schools and charities will be encouraged to raise funds by collecting containers for cash, likely to be set at a 10c under Premier Mike Baird's proposal. Credit:Domino Postiglione

Under the NSW scheme, schools and charities will be encouraged to raise funds by collecting containers for cash, likely to be set at a 10c rebate. Beverages companies will be allowed to increase drink prices by the amount of the deposit, and only need to pay the deposit on redeemed containers.

In last week's letter, obtained by The Sun Herald, Mr Baird informed the National Packaging Covenant Industry Association that "the NSW government favours the introduction of a state-based container deposit scheme".