The state government will provide $13 million to support Victorian councils impacted by China’s decision to ban certain imports of Australian paper and plastic waste from January 1.
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The move threatened kerbside collection services for numerous regional councils, including Mount Alexander, Buloke and Macedon Ranges shires, as multinational company Visy stopped receiving recyclable materials from its contractors earlier this month, some of whom collected for the shires.
It also sparked fears some councils would have to stockpile material, pay more to recycling operators, or put it in landfill.
Buloke Shire was one of the councils whose contractor was forced to pay more to recycle material for the shire.
The shire’s director of works and technical services Anthony Judd recently said its recycling collector, Four Seasons Waste, had a contract with Visy.
In the interim, Four Seasons Waste had secured a short-term deal with a company in Dandenong to recycle the waste.
“There’s cost implications – the current (short-term) cost is much higher than our contractor has arranged,” he said at the time.
The City of Great Bendigo earlier this month confirmed its contractor was not associated with Visy, and kerbside recycling collection services would continue as normal.
The funds will give councillors and their contractors time to develop longer-term solutions, including renegotiating contracts
In addition to the cash injection, the state government will establish a recycling industry taskforce to develop a strategic plan for industry transition, which Victorian waste management association chief executive officer Peter Anderson called for earlier this month.
China required cleaner, more processed version of materials previously sent from Australian shores, and the Victorian recycling industry needed to upgrade its infrastructure to meet those standards, the government said.
Environment minister Lily D’Ambrosio clarified that while recycling was a matter for local councils, the government would assist in navigating China’s new import rules.
“This is about protecting jobs and ensuring Victorians have confidence to continue recycling,” she said
Council assistance will be provided until June 30 and councils will be required to meet any increase in recycling costs from July 1 onwards.