Council Moves to Make Adjustments As Waste Market Changes.

The Waitaki District Council is to consider lowering refuse charges at the Tamar Street landfill in Oamaru.

If Council gives approval at their meeting on Wednesday 15 December the refuse fee will drop from $174 per tonne of waste to $155 per tonne effective February 2011.

Private waste contractors are offering cheaper disposal options. Council needs to adapt to the market realities.

The Council report explains how landfill revenue funds solid waste activities. Landfill revenue reduces the rates burden.

Council budgeted landfill income at $1.6 million in 2010/11 but a shortfall in revenue of $200,000 is expected due to lower waste volumes being disposed. If no change is made this shortfall will only grow.

Council has increased charges at the Oamaru Landfill to encourage waste minimisation. Revenue funds other waste minimisation activities and transfer stations.

This model is no longer feasible. Waste is being diverted out of the district to cheaper landfills. Council needs to adapt to the market realities. This may require other cost cutting measures.

Assets Group Manager Neil Jorgensen said “essentially we have been succeeding at waste minimisation along with a tighter economy. Now we don’t have enough waste coming in to fill the landfill.” The waste market is changing.

Councils target has been to extend the life of the Tamar Street Landfill until 2016. The trend of declining waste volumes and an increasingly competitive private market mean that there will be more excess capacity at this time. Council is unlikely get consent to extend the life of the landfill.