COMMERCIAL WASTE RATES DROPPED

INDUSTRIAL/COMMERCIAL WASTE CHARGES FALL IN BID TO UP WASTE RECEIVED

A reduction in the rate Greater Shepparton City Council charges for commercial waste aims to reverse an estimated $4 million hit to revenue felt this financial year.

The industrial/commercial and building and demolition waste per tonne fee for Cosgrove landfill was this week dropped from $225.50 to $170 in response to market pressures.

The council unanimously voted to adjust the charge during a second quarter forecast review at this week’s council meeting.

Former mayor Dennis Patterson believed the price drop would well equip the council for the ongoing ‘‘rubbish wars’’ playing out in the region.

A report to the meeting detailed that the amount of commercial and industrial waste received at Cosgrove had significantly decreased, impacting on the operational viability and sustainability of the site.

Council’s corporate services director Chris Teitzel said previous prices had been considered to be within reasonable range, but that the market price for waste had dropped.

‘‘And we weren’t quick enough in adjusting the price,’’ Mr Teitzel said.

‘‘(We’re) adjusting the price down so we think it’s more in line with the market.

‘‘It will make it more attractive for the commercial users of Cosgrove Two landfill to take (their) waste back there.’’

After an about $1 million drop in revenue was flagged in December, Mr Teitzel said the council had wanted to analyse and review the market to assess ‘‘how far we needed to move back to get it to a reasonable price’’.

Mr Teitzel said overall it had worked out to roughly a $4 million impact to income in the course of the whole year.

However, he expected $1 million to $2 million had been saved.

‘‘The decreased volumes in the longer term have allowed us to push the Cosgrove Two end date out just a fraction,’’ he said, arguing the decreased volume had bought the council some time.

‘‘At end of day, the waste business is still profitable. It’s not running at a loss.’’

Mr Teitzel said while nothing could definitively ensure waste operators would return to council’s services, they would know within a month what impact the price adjustment had made.

‘‘Having said that, we have spoken with a few key operators within the region to find out what their views are on our pricing compared to the rest of the market,’’ he said.

‘‘Without saying to them if we drop it to this point will you guarantee you’ll come back to us . . . we’ve done a bit of testing to see where we sit and we’ve looked at the other landfills around Victoria.’’

In the words of Cr Patterson, the adjusted charge would arm and ready the council for the current ‘‘rubbish wars’’ taking place.

‘‘Cosgrove, as we know, there’s been some issues there,’’ he said. ‘‘There’s a section (here) that will hopefully allow us to become more competitive,’’ he said, speaking to the motion to drop the charge at this week’s meeting.

WITHOUT SAYING TO THEM IF WE DROP IT TO THIS POINT WILL YOU GUARANTEE YOU’LL COME BACK TO US . . . WE ’VE DONE A BIT OF TESTING TO SEE WHERE WE SIT AND WE’VE LOOKED AT THE OTHER LANDFILLS AROUND VICTORIA. — CHRIS TEITZEL