Hobsons Bay residents will be hit with waste collection fee hikes of 17 per cent due to the China recycling crisis.
The draft budget for 2018-19 flags a $30.30 increase to bring the charge to $200.
The council has said the fee rise was a direct result of China’s ban on low-quality recycled paper and plastics.
Cr Colleen Gates said paper and cardboard made up about 59 per cent of household recycling in Hobsons Bay, with Australia exporting about half of recyclable waste paper to China.
“The China policy has changed the market and the price of commodities, particularly recycled paper,” she said.
“This decision affects the viability of local government contracts with the three kerbside recycling processors in Victoria, namely Visy Recycling, Polytrade and SKM Industries. Council is working with our recycling contractor, SKM, to ensure our recycling service continues in a sustainable way.”
She said the extra costs were to cover SKM’s additional fees to upgrade machinery and find new markets. “An alternative option is to landfill recyclable material, but this would cost more, be detrimental to the environment and result in poor recycling behaviours,” Cr Gates said. The council has applied for state government funding to cover additional costs, but this would only apply to June 30.
Maribyrnong council has warned China’s decision could cost the council almost $360,000 in lost revenue from sales of recyclables to Visy.
The council’s draft 2018-19 budget estimates the ban could add a further $500,000 to the cost of dealing with waste.
“If these two financial impacts are realised next financial year an application for support to state government will be made,” it stated.
With Benjamin Millar
