GOING UP: Bonny Glen, near Marton, has increased dump fees.PHOTO/FILE
GOING UP: Bonny Glen, near Marton, has increased dump fees.PHOTO/FILE
The controversial Emissions Trading Scheme (ETS), which came into effect early last year, looks likely to trickle down to people dumping waste at Masterton tip with a price increase in the wind.
Midwest Disposals, which runs the Bonny Glen landfill near Marton where refuse from Wairarapa is trucked after collectionat the Masterton transfer station has put up its gate fee rate by $3 a tonne to cover the cost of NZ carbon units needed under ETS.
As a result, Masterton District Council is today expected to approve tip fee hikes of the same magnitude to cover the increase.
This will take the cost of dumping waste at Nursery Road to $165 a tonne, or the discounted price to high volume customers of $139 a tonne.
Broken down further, it would mean a price increase in gate fees for vans, utes and trailer of $1 a load tonne.
As the cost increase would be only 6 cents a bag for the council's blue bag collection, it is not intended to look at increasing the cost of bags, which will be reviewed in any case when budgets for 2015/16 are done.
Finance manager David Paris has prepared a report for consideration by councillors at today's meeting recommending the council accepts the need for Midwest Disposals to increase charges and to approve transfer station gate fees at Nursery Rd.
Mr Paris said the three district councils in Wairarapa had an agreement with Midwest Disposals for the Rangitikei business to accept their solid waste.
The agreement runs through to December 2018, with fixed prices but with provision for increases using "cost index movements".
Masterton sends about 13,000 tonnes a year to Bonny Glen which is required, by law, to buy carbon credits based on tonnage the landfill receives.
"The council could dispute the increase and ask Midwest to only on-charge actual costs once they are incurred but, given the clause in the agreement allowing them to pass on other levies, it is unlikely we would be able to avoid paying the ETS charge. Legal costs and other expert advice needed to argue with Midwest could negate any savings achieved by arguing the $3 a tonne down," Mr Paris said.
