Council backs waste levy based on economics

6 March 2007

Media Release

Business Council backs waste levy based on economic and other benefits

A review of international experience shows a move to introduce a new levy to cut waste going to landfills in New Zealand is justified.

The New Zealand Business Council for Sustainable Development says there is sufficient evidence to show a levy of between $25 and $30 per tonne, phased in over three years, is justified.

The levy will raise about $90 million a year when fully introduced and should be used to provide incentives for new projects and innovative technology to boost re-use, recycling and cut waste volumes. These projects should be subject to a cost benefit analysis. Any surplus should go toward cleaning up contaminated land.

A levy will send a price signal so people generating waste know its real cost. This will make some waste reduction alternatives viable.

"A fund will open up tremendous business development and waste reduction opportunities and also stop the current generation sending the real cost of dealing with waste to future generations," says the Business Council's Chief Executive, Peter Neilson.

The country had 115 landfill sites in 2002 according to the Ministry for the Environment's last published survey. It is understood an updated report is completed and will show landfill standards are improving. However, in 2002 only one in five had liners to stop potentially dangerous leaching. Business Council research also indicates that eventually even modern lined landfills will still leak. Landfills also emit the potent greenhouse has methane.

"We are going to have a legacy of sub-standard landfills in New Zealand for some time. Without a fund this will probably not be addressed properly. The evidence for that is the current generation's refusal to pay to clean up sites contaminated by previous generations," Mr Neilson says.

Business Council research also showed levies overseas had effectively cut waste to landfills.

The amount of solid industrial and construction waste being recycled in Denmark, for example, jumped from just under 30% to 90% after the introduction of a landfill tax. At the same time municipal waste volumes stopped growing. The levy in New South Wales has improved the viability of waste recycling construction and demolition waste, along with green waste, glass and plastic.

"We need to cut the health and other costs associated with 3.2 million tonnes of solid waste going to landfill every year. We're quickly filling expensive landfills, stacking up potential contamination problems for our children and grandkids, and wasting opportunities to profit from the waste stream.

"The international review we have done says we're justified to start immediately with a phased-in levy of up to $30 a tonne."

The Business Council research also uncovers overwhelming public and business decision maker support for reducing waste.

This has been measured in six focus groups in Auckland and Taranaki, including three involving small to medium enterprises, two national UMR omnibus polls, and through the Business Council's national online ShapeNZ panel.

A new ShapeNZ survey of 800 business managers, proprietors and self employed shows 87% agree policies are needed to reduce waste (57% strongly agree, 7 disagree). The survey was conducted between August 27 last year and March 1, 2007. It is still open to the public at www.shapenz.org.nz.

Mr Neilson says the Business Council will be making the case for a phased in levy and its use to help fund new waste reduction initiatives when it makes submissions shortly to a Parliamentary select committee, considering a waste minimisation bill introduced by the Green party.

ENDS

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