State won’t buy recycling plant, other operators asked to step in

Melbourne recycling giant SKM won’t get a bailout despite warning tonnes of kerbside material will go to landfill if it closes. But the government insists it has a long-term plan after labelling the recycler a “rogue operator”.

Troubled recycling operator SKM won’t get a public bailout despite warnings tonnes of kerbside material will go to landfill if it closes.

The Andrews Government has begun talks with other businesses that might be able to shoulder more of the waste burden should SKM be shutdown or fall over this week — as company founder Giuseppe “Joe” Italiano foreshadowed on Sunday.

The Herald Sun understands that there is still hope a private buyer can be found for the SKM facility, despite threats of liquidation, and some interest has been expressed by an overseas venture.

SKM Boss Giuseppe Italiano at his home in Deepdene.

Environment Minister Lily D’Ambrosio shut the door on a taxpayer-funded bailout today.

“Our government is not in the (recycling) business and will not be bailing out a company that has shown disregard to community safety and time and time again keeps flouting the law,” she said.

In a sign relations with SKM are at a new low, Ms D’Ambrosio called it a “rogue operator” and that “we know that they don’t know how to run a business” before insisting the government was working on a long-term plan for recycling.

This could include a container deposit scheme to encourage Victorians to return bottles for cash.

Minister for Energy, Environment and Climate Change Lily D'Ambrosio.

Talks have begun with other companies in the sorting and recycling industry to assess whether any of the 31 contracts that SKM holds with councils around Victoria can be absorbed into other operations.

But some kerbside recycling material is likely to go to landfill in the short-term even if extra work is taken on by other operators.

Municipal Association of Victoria president Coral Ross said the government and councils would need to work out how much recycling capacity was available in Victoria.

“Existing players could expand their operations by running longer or extra shifts to reduce stockpiles,” she said.

Cr Ross said a statewide recycling campaign should be fast-tracked to reduce contamination.

Opposition Leader Michael O’Brien said Victorians were good at recycling and “Daniel Andrews needs to make sure their hard work isn’t sent, literally, to the tip”.

State Opposition Leader Michael O'Brien. Photo: AAP

Melbourne Deputy Lord Mayor Arron Wood urged people to keep sorting their recyclables.

“The worst thing would be if Victorians lost confidence in the recycling industry and stopped the practice,” he said.

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Acting Victorian Greens leader Dr Tim Read called on the government to work with local councils to ensure kerbside recycling collection was maintained if a company wasn’t found to take over from SKM.

The Greens said that China’s move to turn away more of our waste had cost Victorian councils was about $16 million in 2017-18 and $38 million in 2018-19.