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

CHINA’S recycling ban will cost SA’s waste industry up to $8.8 million per year — and ratepayers are likely to pick up the bill, the Local Government Association of SA warns.

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CHINA’S so-called National Sword Policy will cost South Australia’s recycling sector up to $8.8 million per year — and ratepayers are likely to pick up the bill, the Local Government Association of SA warns.

The figure was revealed in a market analysis report commissioned by the LGA in the wake of the Chinese Government’s ban on imported recycling products.

It was based on a $63 per tonne increase in the cost of processing recycling materials with SA councils collecting 140,000 tonnes of kerbside recyclables.

LGA president Lorraine Rosenberg said the report highlighted the severity of the issue and urged the State Government to intervene.

“The primary concern of the local government sector is to ensure the ongoing sustainability of the recycling industry in South Australia — and preserve the community’s trust and faith in the recycling process — through this time of transition,” she said.

“In the medium-to-long term, we need strong action from the State Government to support a local reprocessing and remanufacturing industry being established here in South Australia that will ensure the long-term viability of the system.

“In the meantime, the best way to equitably assist councils to continue providing cost-effective waste management services to their communities is through a freeze on any further increases to the Solid Waste Levy.”

Ms Rosenberg said the levy was scheduled to increase from $87 per tonne to $100 per tonne in metropolitan area on July 1.

She said a freeze would save councils $4.5 million in 2018/19.

Ms Rosenberg also said councils and other members of the waste management sector who had been disadvantaged by the policy should have a chance to apply for funding from the State Government’s $100 million Green Industry Fund.

Environment Minister David Speirs said the State Government was working with key stakeholders as it considered its more appropriate response.

“I’ve also had very productive discussions with Federal and State Environment Ministers,” he said.

“South Australia’s recycling industry is ahead of the curve both nationally and internationally and I’m confident that South Australia is well positioned to meet the challenges facing all jurisdictions.”