UPDATE, THURSDAY 2.30PM A central Victorian council will pay close to $250,000 in waste disposal charges over five months, as the financial toll of Australia’s recycling crisis begins to bite.
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Macedon Ranges Shire councillors approved additional waste disposal costs, which will equate to $233,000, at a council meeting on Wednesday night, to be funded through operational savings from shire’s current budget.
Contractor Visy sent shockwaves through Victoria’s recycling industry earlier this year, announcing it will stop receiving recyclable materials from some contractors in Victoria.
The move – a response to China banning imports of Australian paper and plastic waste from January 1 – sent increased disposal and collection costs down the supply chain, with waste collection company Wheelie Waste, who is contracted to Mount Alexander and Macedon Ranges Shires, demanding councils foot the bill.
The council approved charges by Visy of $136 per tonne to June 30 2018, however it expects to recoup $85,000 to $90,000 of the additional costs through a Victorian government support package announced in the wake of the crisis.
The shire’s director of assets and operations Dale Thornton said Visy could again increase prices from July 1, which may be passed onto ratepayers.
“We need to stop being at the mercy of these international forces, we have the ability to have our own markets here,” he said.
“Up until now we've put it (rubbish) into one bin and crushed it and then it’s someone else's problem.”
Council waste charges are excluded from the state rate cap and are budgeted separately by most Victorian councils.
Mr Thornton said if Visy chose to again increase its charges, ratepayers would be notified as part of the budget process.
The council was pushing the federal government to help restructure the domestic recycling market to avoid long-term price hikes, Mr Thornton said.
“Our message to residents is to minimise wrapping on products they buy, recycle it in a clean state and we’ll do the rest,” he said.
Mount Alexander shire is one another regional Victoria shire feeling the financial pinch, having Wheelie Waste as its rubbish collection contractor.
The shire’s executive manager of business performance Bradley Thomas said the council was working to understand the impact an increase in the cost of the recycling will have on ratepayers and its budget.
WEDNESDAY Macedon Ranges Shire councillors will discuss how to finance its ongoing recycling contract at a meeting on Wednesday amid growing concern price hikes stemming from a statewide recycling crisis will be passed onto ratepayers.
Contractor Visy sent shockwaves through Victoria’s recycling industry earlier this year, announcing it will stop receiving recyclable materials from some contractors in Victoria.
The move – a response to China banning imports of Australian paper and plastic waste from January 1 – sent increased disposal and collection costs down the supply chain, affecting regional councils like Mount Alexander and Macedon Ranges Shires, whose contractor Wheelie Waste last month suspended kerbside collection services for 24-hours.
The state government recently announced a $13 million support package to Victorian councils impacted by China’s important ban.
However the assistance will be provided until June 30 and councils will be required to meet any increase in recycling costs from July 1 onwards.
Neither Macedon Ranges or Mount Alexander could provide an estimation on projected waste disposal charge increases from July 1.
However Warrnambool City Council, who also has a contract with Wheelie Waste, recently said its waste charges could increase by $40 to $50.
Council waste charges are excluded from the state rate cap meaning any price adjustment by recyclers is unbudgeted and will need to be passed to households through waste charges that appear on rates notices.
Municipal Association of Victoria chief executive officer Rob Spence recently said the cost implications currently being discussed by recyclers represented a rate increase for affected rural councils of between 1.1 per cent and 2.5 per cent on top of the existing rate cap of 2.25 per cent.
Mount Alexander shire executive manager of business performance Bradley Thomas said the council was working to understand the impact an increase in the cost of the recycling will have on ratepayers and its budget.
“In consultation with councillors, our finance team is coordinating a draft budget, which council will consider at its ordinary meeting on April 17,” he said.
