Recycling crisis may hit household bills, municipal association warns

VICTORIAN householders could face rate rises unless a cheap solution is found for the rubbish recycling stalemate with China, the local government peak body warns.

HOUSEHOLDERS’ rates bills may bear the brunt of the rubbish recycling stalemate triggered by China halting imports of Victoria’s unwanted waste.

The state’s peak body for local councils has warned that some municipalities would likely apply for rate increases because of higher costs in disposal of recycled material.

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Municipal Association of Victoria chief executive Rob Spence said all Victorians could face rate rises unless a cheap solution could be found.

“While rural councils have been the most directly affected to date, it has become clear that the impacts will be statewide, with significant cost implications likely for all councils and ratepayers,’’ Mr Spence said.

“A number of rural councils are already having to consider costly short-term arrangements in order for their recycling services to continue beyond this week.’’

China stopped the import of recycled rubbish from January, forcing Visy to cancel recycling agreements with local collection contractors which service several regional councils, the Herald Sun revealed last month.

The government has been in talks with councils and recycling and collection companies seeking a solution and to avoid recycled rubbish material ending up in landfill.

Council waste charges are currently exempt from the government-mandated rate cap, currently 2.25 per cent a year.

But councils which do not have a separate waste charge would have to seek an exemption from the Essential Services Commission.

“The current situation is a perfect storm resulting from a crash in commodity prices, an increase in recyclable materials collected, and more than a decade of under-investing Sustainability Fund money by successive state governments,” Mr Spence said.

The state government and Visy were invited to comment.

Mr Spence urged households to continue recycling.

“Follow your council’s instructions about what goes into your recycling bin. Also be mindful of your consumption choices, and buy products with recycled content to help close the recycling loop,” he said.

Energy, Environment and Climate Change Minister Lily D’Ambrosio said the government was working with the MAV and industry “to ensure that confidence in Victoria’s recycling program is maintained”.

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@IanRoyall