‘China sword’ recycling ban could cost another $1m across Adelaide’s southwest as Visy flags new fees

THE so-called ‘China-sword’ could mean it costs an extra $1 million a year to sort and process kerbside waste across the southwest.

West Torrens chief executive Terry Buss says the China Sword may have an impact on his council’s recycling costs.

• China recycling ban will cost SA ratepayers up to $8.8m: LGA report

THE so-called ‘China-sword’ could mean it costs an extra $1 million a year to sort and process kerbside waste across the southwest.

At a briefing for West Torrens councillors last week, the district’s corporate and regulatory services manager Bill Ross said Visy Industries, which buys recyclables from waste contractor Solo, had flagged a drastic turnaround in fees.

Until this month, it paid Solo $10 per tonne for the paper and plastics it picked up in kerbside waste, but now wants to charge $60 per tonne to take it off the company’s hands.

Solo picks up rubbish for West Torrens, Marion and Holdfast Bay councils, and under contractual arrangements, the councils had until now understood they would be protected from price hikes that flowed on from China’s ban on imported recyclables.

But Mr Ross told councillors that position might soon change and processing the recyclables collected in West Torrens could cost about $325,000 a year.

The collective figure for West Torrens, Marion and Holdfast Bay would be about $1 million, he said.

Whether Solo would wear that extra cost, or the councils would help pay for it, was at this stage unclear.

“Solo are going to be talking to Visy about the cost increase and no doubt they’ll be consulting their lawyers,” Mr Ross said.

“It does look to me that our current contractual arrangements would not be subject to the additional cost … although we haven’t taken legal advice on that.”

Mr Ross said there was “no doubt” the value of recyclables had “fallen away markedly”.

“It’s a big problem that there’s not solid markets for recyclable materials in Australia,” he said.

“The market is flooded with recyclable material.”

Mr Ross said even with the increased costs associated with recycling, it would still be cheaper to send it to Visy than to landfill, which would cost roughly $140 per tonne.

“But what do you do with it and where does it go? There’s a lot of stockpiling going on,” he said.

The Chinese Government’s decision to effectively ban the importation of all paper and plastics has resulted in commodity prices dropping by as much as 90 per cent.

West Torrens CEO Terry Buss told the CoastCity Weekly if Solo was forced to absorb the additional costs, the councils would need to decide whether to help the company out.

“Contractually, we could say, ‘It’s not our problem, it’s yours’,” Mr Buss said.

“But that’s probably putting our head in the sand.”

Solo was contracted not just to pick up residents’ rubbish, but also to run its North Plympton ‘waste transfer station’, which includes a dump and other services, such as collecting electronic waste.

“It might be a matter of whether Solo can stay afloat – whether they can absorb that sort of a hit to their bottom line,” Mr Buss said.

Mayor John Trainer told last week’s meeting he “always thought it was a bit daggy” sending recycled materials offshore to be processed.

“All recycling depends on there being an economic use for the product,” Mr Trainer said.

He said the council should consider at least partially funding any increased cost Solo might have to pay Visy.

Marion Mayor Kris Hanna said his council was seeking legal advice on the issue.

Visy did not respond.

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