Nillumbik Council ‘explores options’ on SKM waste contract as recycling goes to landfill
Nillumbik Council could join other Melbourne councils in dumping its waste contract with SKM following the recycling company’s closure last month. It is contracted until 2025 but may look to use a trigger clause to get out.
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Nillumbik Council could break a six-year deal with insolvent recycler SKM as it continues to send tonnes of recycling to landfill.
The council was one of dozens forced to divert recycling to landfill after recycling giant SKM’s collapse in August.
Nillumbik chief executive Carl Cowie confirmed the council’s waste contract, not due to expire until 2025, but a trigger clause may allow it to get out.
The council has not paid SKM for the service since its closure.
It comes weeks after Darebin Council announced it had signed a new contract with Visy after seeking State Government intervention in breaking its SKM deal.
“Council is part of a collaborative contract with the Metropolitan Waste and Resource Recovery Group as principal,” Mr Cowie said.
“We are working through the Metropolitan Waste and Resource Recovery Group exploring options to terminate or renegotiate our contract.”
SKM’s Laverton site reopened this week but dates for the Coolaroo site — which serviced Nillumbik — to start processing recycling again were unknown.
Nillumbik councillor Peter Clarke said he wanted to see recycling returned as soon as possible and said conversations had been held with the regional waste group.
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“I’ve been disappointed with the State Government response,” he said.
“There doesn’t seem to be any sense of urgency in addressing the matter.”
Neighbouring Whittlesea Council was unable to confirm specifics about its waste contracts, but said it was working with other suburban councils to resolve the matter.
Whittlesea acting city, transport and presentation director Ben Harries said the council would update residents as soon as it could.
“We are unable to provide detailed comment on our waste contracts, however we can say that the City of Whittlesea is working with other councils and the state and federal governments on finding a sustainable long-term option for recycling,” he said.
“We have explored a variety of options and hope to have a solution within the next few months.”