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| Caboolture dump - Levy protest sign. |
The Council and rate payers are set to pay for a complicated $35-a-tonne waste levy being introduced by the Queensland State Labor Government.
Moreton Bay Regional Council (MBRC) and the State LNP have come out swinging against the levy expected to come into effect December 1 this year.
It has been revealed through documents leaked to 101.5FM (see documents further down): Moreton Bay Regional Council expects increased cases of illegal dumping as a result of increased charges for commercial tipping, proposed increases in charges for domestic self haul, the region having large isolated areas and forest reserves.
Under the regime, strict and accurate dumping records are required to be kept by Council. State LNP Member Andrew Powell said, in an on-air interview with 101.5FM, failure to comply would have serious consequences.
"$200 000 and two years imprisonment... for an individual," Mr Powell said.
"$200 000 and two years imprisonment... for an individual," Mr Powell said.
In a sign of the levy's complexity, State Labor Member Of Parliament and chair of the Waste Levy committee Carryn Sullivan, first said there would be no levy on domestic waste but latter changed her position.
“There will be a levy on what we call residual waste… if it can’t be all recycled there will be a levy on the residual waste. That would have to be determined on site,” Ms Sullivan said.
Spokesperson for Commercial Enterprises, MBRC Division 10 Councillor Brian Battersby said council strongly opposed the new $35-per-tonne levy.
“Council would be required to pay the State Government around $3 million a year in levy payments, while wearing a further $1 million per year in implementation, collection and administration costs,” Cr Battersby said.
“The commercial and industrial waste levy may place additional pressure on the budgets of small business operators in the region.
“This levy may also mean local residents have to pay more for council wheelie bin and recycling services to recover the $1 million cost of the State Government’s levy."
Division 12 Moreton Bay Regional Councillor, Adrian Raedel, hit out at the waste levy saying it will increase costs for everyone.
“This waste levy is just another slap in the face for residents,” Mr Raedel said.
The waste levy was passed in State Parliament yesterday with the LNP opposition vowing to rescind the legislation.
State Environment Minister, Vicky Darling, said the Waste Reduction and Recycling Bill would halve the amount of rubbish directed to landfill within a decade, create thousands of greens jobs and see millions of dollars invested into recycling and resource recovery programs.
“Materials that are recovered, reused or recycled won’t attract the levy, saving businesses money and benefiting our environment," Ms Darling said.
MBRC Documents
Fact Sheet Information re Waste Reduction and Recycling Legislation
1) Increased Costs for Data Collection for the Waste Levy
The monthly data collection and reporting (S 41, S 43 and S 51) for the State is extensive and it will be very costly and a major burden on Council’s resources.
§ estimated it will cost MBRC an additional $1M/yr administration costs - the main costs being from an increased number of staff at the landfill facilities
i. including weighbridge staff to collect and enter data whilst still maintaining current customer service levels ($800,000/yr);
ii. increased number of staff to collect and process data for submission to DERM on a monthly basis ($100,000/yr); and
iii. increased number of staff to check the waste loads and ensure they are disposed of in the correct locations to prevent levy avoidance from customers, which Council would then be liable to pay for ($100,000/yr).
§ estimated it will cost MBRC an additional $1.5M each site (i.e $4.5M for the 3 landfill sites) for infrastructure costs to upgrade the facility entrances to accommodate vehicle turn around locations for weighing all the stockpile and residual waste movements
See Scenario 1 for details
2) Additional Requirements for Data Collection at Landfills than for Transfer Stations
If the waste is delivered directly to a landfill (levyable site) site, rather than to a transfer station (non-levyable site), then the data collection is far more onerous.
§ Additional details are required when the waste is delivered (i.e. information about each individual load, rather than the total load if it had come from a transfer station)
o Who delivered each load of waste (for domestic and commercial/industrial);
o Type and amount of waste delivered;
o How much waste is exempt and the proportions of the different types of levyable waste;
o When was it delivered; and
o The vehicle details (registration number);
§ The waste held in stockpiles at the landfill facility;
§ All waste movements (recyclable and residual waste) from stockpiles at the landfill facility need to go over the weighbridge. This includes waste to landfill, waste reused on site and waste exported for recycling, which is required to get Recycling Recovery Deduction (RRD) as all commercial recyclable waste (excl green waste) requires a levy payment upon delivery and then a deduction can be made only when the material leaves the site.
§ There are 10 different formulas within the draft Regulation requiring the calculation of the levy.
§ There are also penalties in the Bill ranging upwards to $200,000 or 2 years imprisonment (s53) for waste levy evasion or noncompliance.
§ DERM officers have advised Councils if they are out of pocket with the administration of the levy then they can increase their gate charges.
See Scenario 2 for details
Solution: Need to simplify and reduce the data collection requirements
Concentrate on ‘waste to landfill data collection’ and not all the other movements of waste in and out of stockpiles or a Resource Recovery Area (RRA). All recyclable waste movements should not need to be weighed.
Council would also request quarterly reporting and payment of the levy. This would allow sufficient time for processing, both the data and the payment sides, while reducing the reporting commitments of the levy.
3) Municipal Solid Waste (MSW) will incur levy charges
DERM’s Fact Sheet states:
“The levy will not apply to municipal solid waste (MSW). Municipal solid waste includes domestic kerbside collected and self-haul waste and waste generated by local governments in the provision of municipal services, such as maintenance of parks and gardens, street bins, sewage and water treatment plant waste”.
All residual MSW from Stockpiles is Levyable
The operator of a levyable waste disposal site (landfill site) is required to pay the levy on all waste material taken from a stockpile or a RRA and disposed of to landfill (s36, s60 and s62). This will include remnant material from sorting the domestic self hauled general waste when trying to recover any recyclable waste and remnant material (e.g. contamination) from the recycling stockpiles (e.g. metal recovery, greenwaste, concrete and timber recycling pads/areas).
All MSW has a $0 Levy applied - only if it is taken direct to Landfill
If it was domestic waste and it was landfilled upon delivery and not stockpiled or taken to a RRA it would incur a $0 levy charge. However if it is stockpiled or taken to a RRA and any recyclable waste removed, a levy charge of $35/tonne will now apply to the residual waste.
This system does not encourage the recovery of domestic recyclables. If Council continues to try and increase the amount of waste recycled from self hauled domestic waste it will need to recover the levy costs from residents.
All residual MSW from a Sorting Area at a Waste Facility is Levyable
From the draft Regulation – Division 3 ‘Rate for waste levy’ (s16(4)) it stipulates that:
“The waste levy that applies to MSW that is-
(b) sorted at a waste facility;
is the waste levy for commercial and industrial waste”.
Therefore if MSW is sorted at a waste facility then a waste levy will apply. It is unclear from the Bill if a sorting area within a landfill site was to be treated either like a stockpile or a RRA and if the remnant material disposed to landfill after sorting the domestic self hauled general waste to try and recover any recyclable waste would incur the levy.
Solution – Domestic waste should be totally levy exempt no matter how it is processed.
4) Levy Charges for reusing recyclable waste at landfills
DERM’s Fact sheet states:
“Some specific waste is proposed to be exempt from a levy including:
all waste that is destined for recycling or beneficial reuse”.
A resource recovery deduction (RRD – Section 38) can be claimed against the total waste levy payable for a quantity of stockpiled waste that is exported from the site in that month if it has been sold or it is to be recycled.
However waste that is recycled and then reused at the landfill facility will not be levy exempt and a RRD can not be claimed. Currently an application for a waste to be levy exempt can be made for recycled waste material used for landfill rehabilitation purposes (Section 28). However this may or may not be granted and it also does not apply to recycled waste materials used in the construction.
Council needs to have assurances from the State that the following materials will be exempt from the waste levy:
- Clean fill
-Clean fill is stockpiled at landfill sites on a regular basis and is essential in the operation of the facility for daily cover (stop ibis colonies forming and feeding off the waste), cell construction, final capping, revegetation, roads and access areas, etc.
- Mulch
-Mulch is used for landscaping and revegetation of areas, including after final capping.
- Crushed concrete
-This product is used extensively around the site to establish recycling pads and roadways for both light and heavy vehicles.
Therefore if Council’s use recycled waste that has been processed on site then a levy will apply, however if virgin materials or recycled waste is bought and imported onto the site it is not considered waste and therefore a levy does not apply. This will not encourage the recycling of these materials if they cannot be used without paying the levy.
DERM have indicated that clean fill will be levy exempt, however all other waste reused on site will still attract the levy.
Solution - All recycled waste materials used in the construction, remediation and day to day operation of a landfill should all be exempt from the levy, without the need to apply for an exemption.
5) Illegal Dumping in Region is likely to increase
· Increased charges for commercial tipping
· Proposed increase in charges for domestic self haul
· Moreton Bay Region has large isolated areas and forestry reserves
Scenario 1
A resident comes into the Landfill with a mixed load of waste including 2 tyres, timber and general waste.
Pre Introduction of Levy
The operator asks for their proof of residency and details of load. The resident is then advised to drop off the tyres in the tyre pile, the timber in the timber pile and the general waste at the Pit area. Any recyclable material in the general waste will be salvaged at the Pit area and the remaining waste is loaded into a bulk bin and taken to the Tip.
Post Introduction of Levy
The operator asks for their proof of residency and details of load (s51 (2)), including the types and amount of waste delivered, how much waste is exempt, when the waste was delivered and details of the vehicle including the registration number. To keep accurate records of the stockpiles the resident’s vehicle is weighed and then they are advised to drop off the tyre in the tyre stockpiled and return to the weighbridge for re-weighing. The details of the tyre stockpile will be upgraded in the weighbridge system. The resident will then be required to drop off the timber in the timber stockpile and return to the weighbridge for re-weighing. The details of the timber stockpile will be upgraded in the weighbridge system. The resident will then be required to drop off the general waste in the Pit area. Any recyclable materials in the general waste will be salvaged from the Pit area. These recyclable materials will have to be weighed and placed into the relevant stockpiles and the details of the stockpiles will have to be upgraded in the weighbridge system. The residual waste from the Pit area will have to be weighed and charged the levy amount of $35/t. As Council does not charge residents on entry to the Waste Facilities Council will have to recoup the cost of the levy for the residual waste.
Issues
1. On some days the Landfill will receive up to 1,800 customers in one day. If the data on the stockpiles is to be maintained this may increase to over 5,000 data entries a day for some sites (see s51(2c)).
2. New turnarounds will need to be installed so the resident can drive out and turnaround to come back across the weighbridge. This may cost up to $1.5M/site. The resident will then have to fit into line with the traffic coming over the weighbridge.
3. Residents will become very frustrated and will argue with the weighbridge operators and cause further delays and greater frustration with delays.
4. There are significant fines (s43 Bill) of $30,000 for not recording the amounts of waste.
5. At least one extra weighbridge operator will have to be employed full-time for 11 hrs/day and 7 days/week.
6. Additional facility operators will have to be employed to ensure contamination in stockpiles is kept to a minimum to reduce extra payment of levy.
7. Additional facility operators will have to be employed to recover the maximum amount of recyclable material from the Pit area to reduce the amount of residual waste being landfilled and the levy being paid to the State.
Scenario 2
A resident comes into a Transfer Station with a mixed load of waste including 2 tyres, timber and general waste.
Pre Introduction of Levy
The operator asks for their proof of residency and details of load. The resident is then advised to drop off the tyres in the tyre pile, the timber in the timber pile and the general waste at the Pit area. Any recyclable material in the general waste will be salvaged at the Pit area and the remaining waste is loaded into a bulk bin and taken to the Tip.
Post Introduction of Levy
As this is a Transfer Station there is no additional requirement to collect Data than what is currently collected.
Waste Type
|
Waste
Amount
(t) |
Levy
Amo-
unt ($) |
Cost
Implications
|
Comments
|
Council
Industrial Waste
|
1,600
|
35
|
$56,000
|
|
Council Self-haul
Waste
|
7,000
|
35
|
$245,000
|
|
Council Cleanfill
|
78,000
|
35
|
$2,730,000
|
Unknown at this stage. Latest info suggests
that it may not be levyable.
|
Commercial
Cleanfill
|
164,000
|
35
|
($1.3 M)
|
Loss of income
($8/t) for Facilities. Latest
info suggests that it may not be levyable.
|
Administration
Costs
|
$1,000,000
|
Weighbridge Operators - $800,000
Facility
Staff - $100,000
Office
Administration - $100,000
|
||
Domestic Kerbside
Waste - MSW
|
101,000
|
0
|
$3,535,000
|
Expected to
increase after 2-3 yrs at possibly $35/tonne
|
Domestic
Self-haul Waste
sorted at Landfills
|
36,000
|
35
|
$1,260,000
|
The waste levy that
applies to MSW that is-
(b) sorted at a
waste facility;
is the
waste levy for commercial and industrial waste (Reg s16)
|
Domestic
Self-haul Waste
sorted at Transfer Stations
|
16,000
|
35
|
$560,000
|
Unknown if
levyable
|
Domestic
Cleanfill
|
45,000
|
35
|
$1,575,000
|
Unknown if
levyable
|
MRF Residue
|
2,500
|
35
|
$87,000
|
First 2 yrs may
be $17.50/t
|
Probable Costs $2,648,000/yr
Possible Costs $4,865,000/yr
Possible Future Costs $3,535,000/yr
