South Australia Parliament to examine impact of China Sword recycling crisis on councils

China Sword has caused havoc for recycling across South Australia. Now a parliamentary inquiry is going to investigate just how big the problem has become.

The impact of the China Sword recycling crisis on South Australian councils will be examined by a parliamentary inquiry.

The Environment, Resources and Development Committee will investigate the extent of the crisis, triggered by China’s ban last year on the importation of recycled paper, cardboard, plastic and glass.

Councils have been hit hard by increased processing costs, with Tea Tree Gully saying they are responsible for one third of its 2.7 per cent rate increase.

Three others — Onkaparinga, Marion and Holdfast Bay — are planning to build their own $26 million recycling plant in Adelaide’s southern suburbs.

The parliamentary inquiry will look into whether more money should be made available for councils from the Government’s Green Industries Fund, which contains $120 million raised from levies on waste taken to landfills.

It also will examine how South Australia has responded to the China Sword crisis and what changes are needed to improve waste management.

The inquiry comes as a new advertising campaign tries to educate the public about recycling, particularly which bins take which material.

Contamination in yellow bins remains a serious issue, while not enough households are using green waste bins to their full potential.

In a circular to councils, the Local Government Association said the inquiry “represents an important opportunity for the local government sector to make its voice heard on waste management and resource recovery and explain how the industry transition that is currently underway is affecting councils and communities”.

“The inquiry is also an opportunity for councils to seek policy and legislative support from Parliament whilst making the operational decisions required to meet the recent challenges,” it said.

LGA president Sam Telfer said China Sword was costing South Australian councils at least $8.8 million each year “putting significant pressure on council budgets”.

The LGA previously has called for money to be released from the Green Industries Fund to help councils cope with increased recycling costs caused by China Sword.

The request was rejected by Environment Minister David Speirs, who said $24 million already had been provided in a support package for the recycling industry.

Mr Telfer said local government paid $34 million annually into the Solid Waste Levy, which will increase by 3 per cent on July 1 from $100 to $103 for each tonne of waste taken to landfills.

“Councils need partnership and support from the State Government to help shield ratepayers from the increased costs of waste and recycling, and drive downward pressure on rates,” he said.

Submissions to the inquiry can be made at the committee’s website. They close on July 19.