ZERO WASTE SA

The Hon. R.L. BROKENSHIRE (15:15): I seek leave to make a brief explanation before asking the Minister for Sustainability, Environment and Conservation a question regarding Zero Waste SA.

Leave granted.

The Hon. R.L. BROKENSHIRE: On 20 December 2012 the former treasurer released his Mid-Year Budget Review, and on page 16 it reads:

Waste policy reform—$8 million per annum (indexed) from 2015-16 by ceasing the operations of Zero Waste in South Australia in 2015-16. The government will develop a model for the continuation of the functions of Zero Waste SA as a non-government organisation. A grant of $1 million per annum will be retained to support the non-government organisation in this role.

I have a transcript from this morning, 5 February 2013, where the minister, the Hon. Mr Hunter, presented on FIVEaa. Mr Byner said:

Alright. Let's talk to the Environment Minister...thanks for coming on...now you're going to abolish the agency.

The minister says:

Well no, not exactly...I don't know where this came from.

Then Mr Byner tries to qualify it a bit and says:

There was an announcement made that the government was going to disband Zero Waste. Not true?

Then the minister said:

Well, no, let's be quite clear. The government has decided that it no longer would be ideal to keep Zero Waste inside of government. We are looking at ways of how we can actually talk to the stakeholders, the community, councils and industry and commercial users to take more control over their own recycling needs.

Then he goes on to say:

So, we will investigate with our stakeholders how we might best position Zero Waste into the future to continue doing the job that it's been doing since 2003.

The Auditor-General highlighted in his report tabled in this place on 16 October last year a table showing that revenues from solid waste levy have increased from $26 million in 2010-11 to $40 million in 2011-12. Zero Waste South Australia has historically been a recipient of 50 per cent of the funding from the levy, but the Mid-Year Budget Review says that that agency will now cease.

When the former Liberal government introduced a levy in 1994, which the Local Government Association supported at the time, the levy was $2.07 a tonne in metropolitan areas and $1.07 a tonne in country areas. Under the Liberal government that had risen to only $5.09 and $2.56 a tonne over its period, but in the 11 years under Labor the levy has risen to $42 a tonne in metropolitan areas and $21 in country areas. Finally, the Sustainable Budget Commission recommended that Zero Waste SA be abolished but also recommended on page 80 of volume 1 of its report that the solid waste levy lift from what was then $25.50—and is now about $42—to $54 a tonne. My questions to the minister are:

1. Is the government ceasing the operations of Zero Waste SA as per the Mid-Year Budget Review?

2. If so, (a) did the minister mislead FIVEaa listeners this morning; and (b) when will the minister be repealing the act?

3. Was the act reviewed during Zero Waste's eight-year history?

4. How is it that there is to be a saving of $8 million per annum from ceasing Zero Waste SA but only a $1 million per annum cost in running its functions? Is it the minister's premise that the remaining $7 million will be handed over to a non-government organisation purely for solid waste functions?

5. Given that the government appears to have adopted the Sustainable Budget Commission's recommendation to abolish Zero Waste SA, will it also be adopting its recommendation to lift the solid waste levy to $54 a tonne as a 'price signal' to landfill users?

6. Will the minister guarantee to the house that the Department of Environment, Water and Natural Resources has used every cent of this levy for solid waste purposes and will continue to do so in the future?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (15:20): I thank the honourable member for his very important questions, although I have to say that the only person who has been misleading the audience of FIVEaa today and on previous days has been the Hon. Mr Brokenshire.

Zero Waste SA Act 2004 was passed in February 2004 to establish Zero Waste SA, an agency dedicated to progressing the state government's desire to continuously improve the way in which South Australians manage their waste. The primary objective of Zero Waste, at section 5 of the act, is to promote waste management practices that, a far as possible, eliminate waste or its consignment to landfill, advance the development of resource recovery and recycling and are based on an integrated strategy for our state.

Key functions required under section 6 of the act include regional waste management for regions and industry sectors, market development for recovered resources and recycled material, assistance to local councils, contributing to the development of waste management infrastructure, technologies and systems and commission, and supporting and collaborating on research into waste management.

Section 17 of the act establishes the Waste to Resources Fund, which receives 50 per cent of the solid waste levy. The act dedicates the fund to the purposes of the act. Section 14 of the act requires Zero Waste to submit a business plan to the minister setting out its major projects, goals and priorities on a rolling triennial basis, including the budget for the next financial year.

South Australia released its first waste strategy in 2005, South Australia's Waste Strategy, which sets ambitious targets and actions to reduce waste to landfill, requiring innovative policy and regulatory solutions. Achievements under the first strategy include the rollout of high-performing kerbside recycling systems, investment in important waste infrastructure, improvements in the recovery of materials from regional areas, industry resource efficiency, and commercial recycling incentives.

Zero Waste SA has had a remarkable history of achievement. In 2003, South Australia's waste was fundamentally sent to landfill; we were reliant on landfill. Because of Zero Waste and its activities, we have now turned that right around. Zero Waste set about changing the culture of community and industry through financial incentives, education and advocacy. From 2003 to December 2012, Zero Waste SA expended $68.9 million of waste levy funds into programs and projects that stimulated councils, businesses and the community to reduce, recover, re-use and recycle, thereby cutting the amount of waste going directly to landfill.

Our target as set out in South Australia's Strategic Plan is to ensure South Australia reduces its waste by 25 per cent by 2014 and 35 per cent by 2020. We know that Zero Waste's endeavours to change community views and behaviours have been incredibly successful. We know this because South Australia has reduced the amount of waste going to landfill by 17.32 per cent since between 2002-03 and 2009-10. Between 2005-06 and 2009-10, waste levels to landfill in the Adelaide metropolitan area declined at an average rate of 25,000 tonnes per annum. South Australia's recycling rate is among the world's best; we are diverting more than 70 per cent of all waste generated.

Zero Waste's achievements have been recognised by its being awarded the Premier's Award for Attaining Sustainability in both 2007 and 2009. South Australia's waste management has been acknowledged as world's best practice by the United Nations. Zero Waste was tasked with changing the culture of this state with regard to waste, and it has done so.

Continual improvements in recycling behaviours and, more importantly, waste avoidance, are required. Now is the time for the next stage of that process. The hard work has been done by Zero Waste; it has delivered on its objectives and dramatically changed the culture of our state. It is now up to industry and the broader community to take the torch and run with it. That is not to say that the government will not continue to invest in waste reduction initiatives. Of course we will; we just will not be playing such a major directing role. We want industry and the consumers to direct that role themselves.

Instead, as of 1 July 2015, industry and community organisations and local government will be expected to take a more active leadership role. At that time, the government will refocus its support and realign Zero Waste to sit outside of government. As detailed in the Mid-Year Budget Review, we will provide grant funding for a non-government organisation to continue the promotion of recycling and efficient resource use and management.