Recycling cost increase fears

Horsham Rural City Council leaders fear China’s ban on importing a range of recyclable materials could double the cost of the municipality’s recycling collection services.

Council technical services director John Martin said while recycling services would continue despite the ban, the council was shouldering a significant cost increase.

“Until now, our recycling contractor has received a payment for materials to the processor,” he said.

“Visy Recycling has now introduced a gate fee on the processing of recyclable materials. This will result in a processing cost increase of more than $100 a tonne.”

Mr Martin said this was an extreme cost increase and if it continued, would almost double the operating cost of the council’s recycling collection service.

“At this stage, it’s only a temporary cost increase until the end of February, as the ongoing arrangements for processing of recyclable materials are still under negotiation,” he said.

“Importantly, it still remains cheaper than disposing to landfill, and means that these valuable recycled resources will continue to be used effectively.”

Mr Martin said while the effects of recycling industry changes were only just being felt, it was likely more councils across the state would be affected.

“The Municipal Association of Victoria is working on behalf of councils in negotiations with recycling processors, collection contractors and the State Government to help broker a resolution,” he said.

“This includes consideration of investment opportunities using the State’s Sustainability Fund, which is sourced from landfill levies paid by councils for each tonne of material disposed to landfill.

“The MAV estimates that if these negotiations are not successful, the potential exists for rate increases across the state on top of the Consumer Price Index of between one percent and 2.5 percent.”

Municipal Association of Victoria chief executive Rob Spence said he had been meeting with councils, recyclers, collectors, the Environment Minister, the Treasurer’s office and the Department of Environment, Land, Water and Planning in an effort to help 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,” he 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.”

Mr Spence said the MAV had called on the State Government to assist councils until June 30, so councils were not forced to pull funding from other essential services or send recyclable materials to landfill.

“Significant investment in the recycling industry is also essential to help strengthen our system and protect jobs and the environment,” he said.

“The state’s landfill levy income held in the Sustainability Fund should be urgently allocated for these purposes.

“This is a complex issue that requires co-operation and collaboration between all three levels of government, industry and the community.”

While talks between government, councils, recyclers and collectors continued, Mr Spence urged households to continue recycling.

“Follow your council’s instructions about what goes into your recycling bin,” he said.

“Also be mindful of your consumption choices, and buy products with recycled content to help close the recycling loop.”