The state government will become one of the major customers in Victoria’s recycling industry as part of a financial assistance package announced on Tuesday.
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The government will provide $37 million to improve the quality of the state’s waste, but experts have warned the effects of improvements are not likely to have an immediate impact for ratepayers, many of whom were slugged with increased waste charges from July 1.
The government says its Recycling Industry Strategic Plan will help drive greater demand for products containing recycled materials through procurement.
Sustainability Victoria will assist government departments and agencies to identify opportunities to develop their own targets to increase acquisition of recycled content.
Victorian Waste Management Association executive officer Mark Smith said the latest move was a “step in the right direction”.
Roads built by the government could have a requirement to contain a certain percentage of recycled material for example, Mr Smith said.
** Central Victorian councils' waste charge increases 2018-19
“The package is not going to result in immediate relief for councils and ratepayers – the systems and processes will benefit the state in the medium to long-term,” he said.
The move follows China’s decision to ban imports of Australian paper and plastic waste from January 1, which sent the Australian industry into free fall, forcing affected councils to stockpile their recycled materials and pay more to recycling operators.
Those costs were subsequently passed onto ratepayers in respective municipalities. Analysis of waste charge increases across central Victorian councils most recent budgets revealed costs will rise by $42.3 on average in 2018-19.
Macedon Ranges shire is on the higher end at $49 dollars per property, while Mount Alexander’s is $32.5.
The City of Greater Bendigo has increased its waste management charge by $40, or 11 per cent, $25 dollars of which stems from higher recycling costs.
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