Questions over SKM, the company contracted to deal with Ballarat's recycling, grew this week, with council saying back-up plans are in place whatever the firm's future.
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The company had an Environmental Protection Authority notice lifted at its Laverton North plant on Saturday, allowing them to receive more recycling.
However, it has since been hit by a stream of other issues. At the weekend, a senior figure in the waste industry criticised the firm, as well as the councils that continued to use it. The state's environment minister Lily D'Ambrosio also reportedly called SKM "a rogue operator", while the company is facing increasing scrutiny over its financial position. At least one report suggests its management is seeking a buyer.
Meanwhile its director faced court yesterday over alleged breaches of the Environment Act in the lead up to a major fire at the company's Coolaroo plant in 2017.
Ballarat was not affected last week as SKM's Geelong plant, which receives the city's recycling, remained open.
READ THE MAV SUBMISSION TO THE WASTE INQUIRY
All three of SKM's plants were shut down in February, causing major disruption to the state's recycling. Some councils were forced to divert their recycling to landfill, a scenario that Ballarat avoided.
The council's director of environment and infrastructure Terry Demeo said yesterday that council had "contingency plans with other parties in the event of any further disruption."
A spokesperson also said back-up plans were in place for various scenarios, including a short-term closure or the possibility of SKM's closure.
Peter Anderson, the chief executive of the Victorian Waste Management Association - a membership body for the waste industry - criticised councils following the SKM shutdown last week.
He said councils were more concerned with cost than the environment by continuing to contract SKM and they were "not following through with their principles on environmental responsibility".
More than a third of Victorian councils currently have a contract with SKM, including the city of Ballarat, accounting for approximately 50 per cent of the state's kerbside collections.
Council has explored all opportunities during other disruptions in the SKM service and has contingency plans with other parties in the event of any further disruption.
- Terry Demeo, City of Ballarat Council
Coral Ross of the Municipal Association of Victoria said the issue was a question of industry oversight rather than contracts.
"The failure of SKM to manage its business interests and communicate with its customers (including councils) is disappointing and points to the need for greater oversight and regulation of the industry," she said in a written statement.
"In the immediate short-term, we need the state to work with industry to bolster sorting capacity at various facilities so that we don't lurch from one crisis to the next."
The need for outside help was echoed by Mr Demeo, who called for "genuine state investment", in particular to help build a recycling sorting facility. This would, he said, "go a long way to address the current immediate challenge to the central Victorian recycling task."
The council's contract with SKM ends this December and Mr Demeo said council was working through its options with a formal report due to be considered in August. (See council's full response here).
SKM was approached for comment.
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