The Victorian opposition is calling for a freeze on tip taxes as the cost of the state’s recycling crisis continues to grow.
The collapse of SKM Recycling has forced many councils to dump their recyclables but the government says landfill fees are being used to fund financial support.
The company was using five warehouses to store 60,000 tonnes of surplus waste, but now it’s gone into administration and landlords are at a loss as to what to do.
The owners of a warehouse in Derrimut say they’re already more than half a million dollars out of pocket in overdue rent and bills from SKM and their property is still going to be tied up for some time, with up to six months and $3 million needed to clear the waste.
The recycling giant’s operational arm has confirmed its Coolaroo and Laverton sites have been cleaned up and are ready to run if they get the green light from the administrators or a new operator.
But some councils have begun sending their recyclables to the tip, prompting the Coalition to call for a freeze on landfill levies.
Opposition leader Michael O’Brien accused the Premier of sitting in his hands.
It’s completely immoral for Daniel Andrews to be charging Victorians a tax for a recycling crisis that he’s created,” Mr O’Brien said.
The opposition claims the fees generate $240 million a year but only $40 million is spent on recycling..
The government says the levies are being invested back into affected councils.
“We’re doing a lot of work to ensure that recycling is improved from the current situation,” Robin Scott said.