The Waste Reduction and Recycling Bill 2011(WRR Bill) entered the Queensland parliament on August 3, with Environment Minister Vicky Darling saying that it “will drag Queensland’s waste sector out of the dark ages” – a comment which has raised the ire of some within industry. In a speech given to the parliament Darling said the government has a ten-year plan to halve the amount of waste going to landfill and the WRR Bill will help the state meet its goals.
“Data shows that Queensland is one of the largest generators of waste in Australia. We produce more than 32 million tonnes of it every single year, which is the highest amount of waste per capita of any state,” said Darling. “We also have one of the worst recycling rates in the country – only about a third of our recoverable waste [is recycled] – we want reusing and recycling to be the first option over landfill.”
According to the Regulatory Impact Statement on theWRR Bill, the Queensland government is expected to apply the following levies to waste:
- $35 per tonne of construction and demolition waste
- $35 per tonne of commercial and industrial waste
- $35 per tonne of contaminated and acid sulphate soils
- $50 per tonne of lower hazard regulated waste
- $150 per tonne of higher hazard regulated waste
Despite Queensland’s desire to rapidly increase recycling rates and diversion from landfill, municipal solid waste (MSW) is excluded from the levy. “Households will not be affected - this is an industry waste levy which will commence on December 1 this year,” Darling said.
Originally intended to come into force in July this year – the implemenation of the levy was delayed due to the effects of the series of natural disasters that stuck Queensland this year, including Cyclone Yasi and the December-January floods which caused major disruption accross the state.
The levy revenue from 1 December 1, 2011 to July 1, 2014 is estimated to be around $338 million – which will be channelled into three different funds, including:
- $159 million for the Waste Avoidance and Resource Efficiency (WARE) Fund for waste-related programs and projects.
- 120 million for a new Sustainable Future Fund (SFF)where it will be used to assist in the delivery of local government waste and environmental programs.
- $100 million to help support state government sustainability objectives outlined in Toward Q2: Tomorrow’s Queensland.
“Queensland is the only state to set aside waste levy revenue to generate a fund for the exclusive use of councils,” Darling said. “The new legislation is the most decisive step ever taken in Queensland to improve and modernise waste management, and will bring Queensland into line with other states and with Federal laws.”
Bill to create major market distortions: industry
Despite Darling’s desire to increase diversion rates accross Queensland, the WRR Bill contains a number of levy exemptions, including an exemption on MSW. According to the Inside Waste Industry Report 2011-2012, MSW makes up approximately 42% of waste generated in Queensland. Other expected waste levy exemptions include self-hauled loads, disaster waste, biohazardous waste, illegally dumped waste and waste collected via community clean ups.
The Waste Contractors & Recylers Association of QLD’s (WCRAQ) executive director Rick Ralph sees these exemptions as a key weakness in the bill. “There is a potential here for the Bill and the [subsequent] regulation to distort the market,” he said.
“Consider this – self-haul is exempt from the levy – it goes over the weighbridge and into the pit of the transfer station,” he said. “I pull out a tyre and I pull out a gas bottle, because those two have been sorted from the waste stream – I’ve just turned that domestic self-haul waste from levy exempt to leviable – as it’s now commercial-industrial waste.”
“Incineration; only 10% of the residue goes to landfill. Autoclaving the exact same medical waste – it’s now 100% leviable. So what you’re doing is making incineration commercially a better deal that autoclaving the identical waste stream.”
Speaking to Inside Waste Weekly in June, Max Spedding from the Australian Landfill Owners Association (ALOA) said; “In other states where we have operated with a small levy difference between waste types there have been market distortions. With a difference of $35 per tonne between municipal and commercial waste, the industry will be in chaos.”
“The government had promised to work through the regulations with us, they haven’t. We’re now advised that we won’t get the regulations until the legislation has been passed – we consider that unacceptable,” Ralph said.
Referring to Darling’s comments that she would “will drag Queensland’s waste sector out of the dark ages,” Ralph said that the Minister owed the industry a personal apology.
“This industry provides an essential service. It provides the basis livability framework for society – without us society wouldn’t have a heavy environment in which to live,” he said.
“From that point of view, the commentary about us being the dark ages in Queensland is offensive. That fact that it is now in Hansard and parliamentary notes, we need to get that corrected. It’s harmful to the image of our industry.”
Good news for recyclers
Despite reservations from WCRAQ and ALOA, the Australian Council of Recycling (ACOR) welcomed the WRR Bill, with chief executive Rod Welford saying in a statement, “The Bill provides a significant new foundation for increased levels of recycling in Queensland.”
“Using the proceeds of the Levy to provide incentives for improved recycling of materials and new markets for products made from recovered materials will also drive economic and environmental benefits for the community,” he said.
“Significantly, ACOR has been working with the Government to ensure the levy does not disadvantage existing recycling operations by imposing an excessive cost burden on disposing of the non-recyclable portion of materials being processed through a recycling facility.”
“Allowing for a reduced levy on these residues of the recycling process is an Australian first, which will help promote new investment in recycling technologies and help position Queensland as a competitive leader in recycling in Australia.”
