New Zealand's billion-dollar scrap metal industry will lose out if Green MP Nandor Tanczos' Waste Minimisation Bill goes ahead.
The bill, which is due for its second reading on May 21, calls for a levy on every tonne of waste sent for disposal.
It is intended to deterwasteful behaviour and to provide funding for new waste minimisation initiatives.
But president of the Scrap Metal Recycling Association Trevor Munro said increased costs for dumping waste will fall back on those who have always recycled it for profit.
"While there will inevitably be an increase in post-consumer scrap for our industry, this will be counteracted with the increase of waste that must be disposed of, and due to the increase in costs for this, the effect will be detrimental to our industry."
Munro said the bill would see scrap metal dealers in New Zealand become less competitive than their foreign counterparts.
"New Zealand already has the highest landfill costs in Australasia without the waste levies and unfortunately in order to recycle metals we must handle non-recyclable wastes."
In the past few years, the industry has collected an increase in "post-consumer" scrap, largely due to public education campaigns, including business open days and school visits.
New collection and recycling methods have also raised the amount of scrap received.
But there has been a decline in post-industrial scrap due to the closure of large manufacturing plants such as Fisher & Paykel, Munro said.
Scrap metal is the 17th largest export earner for New Zealand.
Around 500,000 tonnes of ferrous and 50,000 tonnes of non-ferrous scrap metal is generated each year.
Of that 45 per cent of ferrous scrap metal and 90 per cent of non-ferrous metal is exported.
Leading export destinations are China, Indonesia and South Korea.
