Victorian councils seek alternative after Visy suspends recycling contract

SEVERAL Victorian councils are trying to find somewhere to dump their recycled rubbish after paper giant Visy told collection contractors it would no longer accept their waste from next month.

SEVERAL Victorian councils are trying to find somewhere to dump their recycled rubbish after paper giant Visy told collection contractors it would no longer accept their waste from February 9.

Visy said it had become “commercially unviable” to accept materials to be recycled, blaming the decision by China to ban the import of recyclable materials from January 1.

Visy and other recycling companies sort millions of tonnes of residential and commercial waste such as paper, plastic and glass every year, then ship it to China to be processed into re-usable materials.

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Pile of recycling are in limbo after a paper giant told collection contractors their waste would not longer be accepted.

Melbourne-based Visy invoked the clause of “force majeure”— or unforeseen circumstances — to suspend the contracts, referring to the China decision and the collapse of the recycling materials market.

“We are suspending the performance of our obligations,’’ the company said in a letter seen by the Herald Sun.

Environment Minister Lily D’Ambrosio said the state government would investigate the problem.

“I have asked for a meeting with these businesses to seek an explanation into what’s happened and will be discussing these matters with local government,’’ Ms D’Ambrosio said.

“I will be seeking assurances from all relevant parties to ensure this will have no impact on Victorians.’’

Visy handles millions of tonnes of recycling material every year. Pic: Supplied

Discarded plastic bottles and cans are a national waste problem. Pic: Supplied.

Warrnambool company Wheelie Waste, which contracts to at least 11 rural councils including Northern Grampians, Greater Shepparton and Warrnambool, was informed of the decision on January 24. Other councils may also be affected, but could not be confirmed.

Contractors and councils are now negotiating with other Melbourne recycling companies such as SKM Recycling and Polytrade to find a solution in the next 10 days.

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Citywide, which is owned by the City of Melbourne and also collects residential rubbish in Moreland, said its contract with Visy would continue.

“Visy accepts the majority of the products we send them and their recent changes do not greatly impact us,’’ a Citywide statement said.

Visy and Wheelie Waste were approached for comment but did not respond.

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@IanRoyall