Victoria's recycling void will be subject to a parliamentary inquiry as some councils continue to send reusable waste to landfill.
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The state's environment watchdog in February shut down three plants operated by SKM, amid fears stockpiles of recyclables posed a fire hazard.
The move has left the sector in limbo, as SKM was responsible for collecting about half of the state's kerbside recycling.
Some councils admitted they had no choice but to send the items to landfill.
State parliament on Wednesday agreed the situation would be the subject of an inquiry.
"Victorians are doing the right thing and recycling at home, but right now there are no assurances of where it ends up," Greens MP Ellen Sandell, confirming that Spring Street's Environment and Planning Committee will take a further look.
"Government support for a state based recycling industry is long overdue."
The committee is due to report back by August 13.
Environment Minister Lily D'Ambrosio confirmed on Tuesday about 30 per cent of more than 20 affected councils have found new recycling organisations to process their collections while SKM remains shut.
The Environmental Protection Authority will permit SKM to reopen its Laverton, Geelong and Coolaroo plants once they are satisfied with remediation efforts.
Australian Associated Press
