Waste levies unjustified

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Rubbish collection charges need reviewing before waste levies are introduced, Business NZ advised the Local Government and Environment Select Committee this morning.

Presenting the organisation’s submission on the Waste Minimisation (Solids) Bill Supplementary Order Paper, Business NZ economist John Pask said businesses and households needed clarity and transparency around the costs of waste disposal.

With many local councils still funding waste collection and disposal from general rates, there seemed to be little correlation between the volume of rubbish households produced and the costs of its disposal.

Business NZ opposes the proposed law, to impose a $10-per-tonne levy on waste sent to landfills, on top of the current user-pays fees for landfill users.

“We’ve got to get the pricing signals right before we go down this route,” said Mr Pask.

He also recommended that local authorities which own or operate landfills should be required to demonstrate that their fees (including gate fees) reflect the full cost of waste disposal.

Imposing levies in addition to properly costed landfill gate fees were illegitimate and carried no economic justification, he said.

“Consumers shouldn’t have to pay more than the costs they are responsible for.”

If Parliament does introduce waste levies, Business NZ recommends the whole levy be directed to a contestable fund, rather than half being distributed to councils as proposed.