Rates cap laid to waste

Residents may foot heavy bill

VICTORIA’S recycling crunch could see Geelong ratepayers slugged with a rates increase above the State Governmentimposed cap.

The Municipal Association of Victoria (MAV) yesterday issued a warning that China’s ban on accepting 24 categories of solid waste would likely see the recycling services cost burden passed on to ratepayers.

It is feared China’s ban is crippling the commercial viability of many recycling companies, with the Geelong and Surf Coast region’s SKM Recycling this week revealing it was in critical talks to safeguard “the ongoing viability of kerbside recycling”.

MAV chief executive Rob Spence yesterday said he had been working with companies, councils and the State Government to broker a resolution.

“While rural councils have been the most directly affected to date, it has become clear that the impacts will be statewide, with significant cost implications likely for all councils and ratepayers,” Mr Spence said.

“A number of rural councils are already having to consider costly short-term arrangements in order for their recycling services to continue beyond this week.

“With Victoria’s three recycling companies positioning for a statewide price adjustment, we are seeking an outcome that would enable recycling services to continue without a significant cost of living impact on Victorian residents.”

A cost adjustment by recycling companies could be passed on to ratepayers — at a rate increase above the government’s 2.25 per cent cap — as council waste charges are excluded from the cap.

Mr Spence said the cost implications currently being discussed represented a rate increase of between 1.1 per cent and 2.5 per cent — on top of the 2.25 per cent State rate cap.

“The current situation is a perfect storm resulting from a crash in commodity prices, an increase in recyclable materials collected, and more than a decade of underinvesting Sustainability Fund money by successive state governments into our waste and resource recovery industry, amongst other factors,” Mr Spence said.

“We are calling on the Victorian Government to provide assistance to councils until 30 June so that councils are not forced to pull funding from other essential services or send recyclable material to landfill.”

Earlier this week an industry insider claimed SKM Recycling may not be able to guarantee recycling collection beyond yesterday amid the industry-wide turmoil.

It is understood some collected recycling may simply end up in landfill if collection companies cannot find a processing company to accept the waste.

Paper giant Visy last month told collection contractors it would no longer accept waste because it had become “commercially unviable”.