City of Kwinana Minutes – SMRC RRRC WCF Odour Issue – 10 June 2009
21.1 Increase in Waste Levy – State Government Budget 2009
SUMMARY:
The waste levy increase of 300% announced in the 2009 State Government budget is a significant burden in fees and charges on the Town and the community. The waste levy increase is contrary to the original intent of the funding and timeline of the previously announced state government program of waste levy increases through to 2010/2011. The original purpose of the waste levy prohibited the funds from being used for Department of Environment and Conservation (DEC) operational activities and the proposed purpose of this significant increase to $28 per tonne effective from the 1 July 2009 is contrary being proposed for DEC operational activities.
Council is recommended to adopt the resolution and provide strong opposition to the 300% increase with the SMRC and the other regional member Councils.
OFFICER RECOMMENDATION:
That Council resolves to adopt the following recommendation:
That the Town of Kwinana express its great concern at the lack of consultation and notice provided by the state government in increasing the Landfill levy by 300%. The lack of time to plan for this cost increase will cause considerable financial burden to local governments and the community. To this end
1. The Town of Kwinana strongly condemns the use of landfill levy funds for consolidated revenue purposes and requests that the state government reconsider this position.
2. That the government be reminded that at the time of the introduction of the levy commitments were made to local government that amount of money used to administer the levy would be strictly limited (1 to 3%) and that a rebate scheme would be introduced to return funds to local government for materials diverted from landfill.
3. The Town of Kwinana recognises that this increase will assist with driving greater diversion of waste from landfill, however without the infrastructure or cost support for alternative waste processing systems, the impact of the increased landfill levy will be nullified.
4. The Town of Kwinana strongly supports that all funds raised by the landfill levy generated from domestic municipal waste streams and local governments be hypothecated back to local government to support recycling and resource recovery activities and the associated infrastructure. Without this support continued diversion of waste from landfill will be put in jeopardy as the levy increase also penalises resource recovery facilities.
5. The Town of Kwinana strongly supports an exemption from the landfill levy for all residual wastes from resource recovery facilities thus providing further incentive for the development of such facilities.
6. That the Chief Executive Officer write to all state parliamentary members (within the SMRC region) giving the Town of Kwinana position on the landfill levy and seek a meeting with the Premier and Minister for the Environment, and
7. That the Chief Executive Officer write to the Western Australian local Government Association and request that a media campaign be initiated to inform the community of this hidden cost increase to state government revenue at a cost to ratepayers.
URGENT BUSINESS:
At the Southern Metropolitan Regional Council (SMRC) meeting on Thursday 28 May 2009, Councillor Clive Robartson moved a Motion without Notice concerning the significant increase in the waste levy contained in the recent State Government budget. The following resolution was adopted unanimously by the SMRC and requested other member councils act quickly on this recommendation to show a strong united opposition to the proposed waste levy.
DISCUSSION:
The waste levy was introduced in 1998 and the legislation was amended recently in 2007 with the introduction of the Waste Avoidance and Resource Recovery Act 2007 and the Waste Avoidance and Resource Recovery Levy Act 2007.
The REPORT 16 – STANDING COMMITTEE ON ENVIRONMENT AND PUBLIC AFFAIRS MUNICIPAL WASTE MANAGEMENT IN WESTERN AUSTRALIA Presented by Hon Sheila Mills MLC (Chairman) May 2009.
The report provides the background and basis for the introduction of a Waste Levy, the previous governments proposed increases in the Waste levy to 2010/2011. The comparison of the waste levy by the various Australian states shows the Western Australian will be the second highest in Australia behind NSW.
The Report commencing on page 49 states as follows:
The WARR Act and the Waste Avoidance and Resource Recovery Levy Act 2007 Clause 3.24 The Waste Avoidance and Resource Recovery Levy Act 2007 imposes a levy on the receivable of waste by any premises that are required to be licensed for such a purpose.
In her second reading speech on the Waste Avoidance and Resource Recovery Bill 2007, the Parliamentary Secretary to the Minister for the Environment stated:
Since 1998 a levy has been imposed according to the amount of waste going to landfill. The primary purpose of the establishment of the landfill levy was to provide resources to fund projects for advancing waste reduction and recycling.
In many respects, the arrangements for the levy and account continue unchanged. However, they have also been updated. For example, with the advent of the Waste Authority, the authority will take responsibility for administering the account, which was formerly the role of the minister; and the Waste Authority can apply the moneys in the account in ways consistent with the approved business plan, or in other ways that are approved by the minister. Levy funds are to be used only for purposes provided for in the legislation. Specifically, the funds will be applied to programs relating to the management, reduction, reuse, recycling and monitoring of waste. The funds could be used by DEC only for administration of the account and developing or coordinating the implementation of programs consistent with the purposes of the legislation. The levy is not to be used to fund other normal ongoing operations of DEC.81
Clause 3.28 When it was first introduced in 1998, the landfill levy was $3 per tonne for putrescible wastes and $1 per tonne for inert waste.83 In October 2006 the levy increased to $6 per tonne for biodegradable waste and $3 per cubic metre for inert waste.84
Clause 3.29 The Committee notes that there is some controversy in New South Wales regarding the fact that the bulk of the money raised by the landfill levy goes straight into consolidated revenue. It has been estimated that only $13.25 million of the $300 million raised from the levy has been applied to waste management programs in New South Wales.86 By comparison, under the WARR Act, all monies raised by the landfill levy in Western Australia go into a specific fund and are spent only for the purposes set out in the WARR Act.
The WA State Budget has provided that the Waste levy will increase to $28 per tonne to for putrescible waste to class 3 landfills and $12/M3 for inert waste to landfill effective from 1 July 2009. This is a significant cost to the community with no benefit.
There is no intention to use the additional funds for resources recovery or recycling purposes being the prime purpose that the waste levy fund was originally established. The state government has now advised that it will be used for operational issues by the Department of Environment and Conservation contrary to the requirements previously established. This however, will require legislative changes and should not be supported whatsoever by Council or the Regional Council. The Motion put forward by Councillor Robartson and adopted by the SMRC states the case effectively and it is recommended to be adopted by Council to provide regional support and additional political pressure
Council has been requested to consider support for a Notice of Motion adopted by the SMRC which has also been circulated to other member Councils of the SMRC concerning the 300% increase in the Waste Levy.
At the last meeting of the SMRC, held at Canningvale on Thursday 28 May 2009, the Regional Council supported a ‘Motion without Notice’ that Councillor Robartson submitted for consideration which expresses concern of the unexpected and unwarranted 300% increase to the Landfill Levy.
SMRC MEETING THURSDAY 28 MAY 2009
MOTION WITHOUT NOTICE – CR. CLIVE ROBARTSON MOVED
That the southern metropolitan regional council express it’s great concern at the lack of consultation and notice provided by the state government in increasing the landfill levy by 300%. The lack of time to plan for this cost increase will cause considerable financial burden to local governments and the community. To this end
1. The smrc strongly condemns the use of landfill levy funds for consolidated revenue purposes and requests that the state government reconsider this position,
2. That the government be reminded that at the time of the introduction of the levy commitments were made to local government that amount of money used to administer the levy would be strictly limited (1 to 3%) and that a rebate scheme would be introduced to return funds to local government for materials diverted from landfill,
3. The smrc recognises that this increase will assist with driving greater diversion of waste from landfill, however without the infrastructure or cost support for alternative waste processing systems, the impact of the increased landfill levy will be nullified,
4. The smrc strongly supports that all funds raised by the landfill levy generated from domestic municipal waste streams and local governments be hypothecated back to local government to support recycling and resource recovery activities and the associated infrastructure. Without this support continued diversion of waste from landfill will be put in jeopardy as the levy increase also penalises resource recovery facilities,
5. The smrc strongly supports an exemption from the landfill levy for all residual wastes from resource recovery facilities thus providing further incentive for the development of such facilities,
6. That the CEO write to all state parliamentary members (within the smrc region) giving the smrc position on the landfill levy and seek a meeting with the premier and minister for the environment, and
7. That a WALGA media campaign be initiated to inform the community of this hidden cost increase to state government revenue at a cost to ratepayers.
Moved Cr Robartson Seconded Cr Barry
The Motion was carried unanimously by the SMRC.
Ms Ricky Burges CEO of WALGA reported to WALGA its members concerns with the proposed increases in the Waste Levy and stated:
“The Minister for Environment, the Hon. Donna Faragher announced that the existing levies on inert and putrescible waste would be increased by 300% by 1 July 2009, without any contact, consultation or discussion with Local Government”.
Representatives from WALGA met with Minister for Environment; Health, Hon. Donna Faragher on Friday, 29 May to raise concerns regarding the proposed increase in the Landfill Levy.
Specific points which were raised with the Minister included:
- Lack of consultation with the sector regarding the increase;
- Local Government opposition to the removal of hypothecation for the Levy;
- Likely increase in illegal dumping as a result;
- Likelihood of increasing transport of waste from the metropolitan to non-metropolitan areas (and dumping in non-manned landfills); and
- Needs of the waste industry (such as support for recycling).
- The response from the Minister included:
- That WA needs to improve recycling, particularly construction and demolition; and she sees an increase in the Levy as one way to do that;
- Under the proposed WARR Act amendments waste related issues would receive about $13 million / year (as with the current Levy rate); and
- The Department of Environment and Conservation is drafting changes to the Environmental Protection Act to significantly increase the fines for illegal dumping.
There were no suggestions from the Minister about other ways to assist Local Government, such as extra investment in infrastructure to facilitate recycling or extra enforcement officers to ensure that illegal dumping does not increase.
On 3 June 2009 Environment Minister Donna Faragher said the State Government’s move to introduce tougher penalties for illegal dumping of waste in Western Australia would have a significant impact on those who believed it was acceptable to dump their rubbish illegally. She also encouraged waste reduction and increased recycling as alternatives.
A new offence under the Environmental Protection Act 1986 would see individuals face tough fines of up to $62,500 or $125,000 for a body corporate. Mrs Faragher said the proposed new penalties would have a marked effect on the fight against illegal dumping, which often happened in bushland on the outskirts of cities and towns. “Too often, we are forced to deal with unsightly discarded waste on our urban fringes that not only looks disgusting but is also detrimental to the health of our environment,” she said.
“Currently fines for dumping are limited to a maximum of $1,000 under the Litter Act where a case for the offence of pollution cannot be made.”
These changes will be effective to address illegal dumping only when staff resources are available to conduct surveillance and investigations which are costly and time consuming and rely on community support to report illegal dumpers.
