China’s ban on recycled materials from Australia leaves Tea Tree Gully Council facing big bill for recycling

The recycling crisis is starting to hit the hip pockets of ratepayers, with one council revealing a huge bill to process recycling — for which they used to get paid.

• SKM Recycling suddenly closes two plants in Adelaide
• China Sword crisis hits recycling plants in Adelaide
• Northern recycling plant reaps dividends from China Sword
• Matthew Abraham: Recycling is becoming a waste of time

Tea Tree Gully Council is facing hundreds of thousands of dollars in extra costs to process its recycling because of the “China Sword” crisis.

A financial update presented to its most recent meeting said council would be paying an additional $232,000 before the end of this financial year after China banned imports of recycled paper, cardboard, and plastics from Australia.

The ban has caused chaos across the country, with councils suddenly having to pay to have recycling processed rather than being paid to have it collected.

Huge stockpiles of recycled material are developing, including 387 full shipping containers which have been sitting at a Wingfield recycling plant since last year.

The plant suddenly closed two weeks ago after its owner, SKM Recycling, was hit with environmental enforcement notices in Victoria and SA for creating safety hazards.

The plant’s closure has left only two recycling processors in Adelaide, one operated by three northern councils at Edinburgh and another operated at Wingfield by paper and cardboard company, Visy.

Tea Tree Gully is one of several metropolitan councils which had contracts with Visy before the China Sword ban took most recycling processors by surprise.

Visy operates a pulp mill at Gepps Cross, where paper and cardboard from yellow bins is used as raw material.

It has responded to the China Sword crisis by increasing the amount it is charging councils to process their recycling, leading to extra costs like those being experienced by Tea Tree Gully Council.

The Local Government Association has called on the State Government to release millions from a waste levy fund to help councils cover their increasing recycling bills.

LGA president Sam Telfer said $120 million had been collected from $100 charged to councils for every tonne of waste they send to landfill.

“Now more than ever councils need support from the State Government with waste and recycling, to help drive downward pressure on rates,” he said.

The closed SKM Recycling yard at Wingfield. Picture: Colin James

Mr Telfer acknowledged the State Government had offered support to address the impact of China Sword with a $12.4 million package, funded through the Green Industry Fund.

“However, almost all of this funding was provided to the waste industry, and not to councils to help shield their ratepayers from the immediate impact of the increased cost of processing recycling,” he said.

“The LGA has long advocated for both a freeze on increases to the Solid Waste Levy, and for the money that has been collected through the levy and is stockpiled in the Green Industry Fund, to be spent on worthwhile waste and recycling industry projects that will stabilise the industry and deliver tangible environmental and economic benefits for South Australians.”

Shipping containers full of recycling at the SKM Recycling yard at Wingfield. Picture: Colin James

Environment Minister David Speirs rejected the call for more money to be provided to councils such as Tea Tree Gully to help cover their extra costs.

“Waste management is the responsibility of local government and it’s important that individual council areas get back to basics and focus on delivering key services for their residents,” he said.

Mr Speirs said the government’s $12.4 million support package was to “assist South Australia’s recycling industry, support local jobs and improve resource recovery”.

South Australia was a national leader in recycling, with 83.4 per cent of all waste generated diverted from landfill, he said.

“We will continue to work with local government to maintain this status and improve waste management across the state.”