WASTE LEVY

The Hon. S.G. WADE (14:36): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question relating to increases in the solid waste levy.

Leave granted.

The Hon. S.G. WADE: Currently, local government collects a solid waste levy on behalf of the state government through council rates. The current fees are $42 per tonne of waste for councils within metropolitan Adelaide and $21 per tonne of waste for councils not within metropolitan Adelaide.

In the 2013-14 budget, the government revealed that the levy will rise to $47 per tonne for metropolitan councils in 2013-14. The budget forecasts that the level will rise to $63 per tonne by 2016-17—significantly more than the rise to $54 per tonne as recommended by the Sustainable Budget Commission. My questions are:

1. Has the minister received representations from the Local Government Association of South Australia or individual councils with respect to the levy hike?

2. Does the minister appreciate the impact that this change will have on the cost of living for many South Australians?

3. Why does the government continue to place heavy burdens on South Australians already struggling with the cost of living?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (14:37): I rise to take this question because it falls within my portfolio responsibilities.

Members interjecting:

The PRESIDENT: Order! The minister has the call and you are out of order. I am trying to restore some order. Minister, you have the call.

The Hon. I.K. HUNTER: We are magnanimous on this side. We are happy to assist the opposition work out which minister is responsible for which parts of their portfolios and, as I say, I am happy to take the question although it was directed to my leader.

The 2013-14 budget has proposed to increase the solid waste depot levy by $5 per annum over the next four financial years, so this starts, I am advised, with an increase on 1 July 2013 to $47 per tonne, up from $42 per tonne for waste disposed in metropolitan Adelaide, and $23.50 per tonne, up from $21 per tonne for waste disposed in non-metropolitan South Australia.

The impact on business from the increase in the waste levies will be restricted to those who dispose of waste to a waste depot. This will include industry, construction, demolition, commercial and industrial sectors obviously and, of course, local councils. Many businesses in the waste sector had expected the levy to reach $50 per tonne ahead of the planned increase in 2014-15. We are moderating the increase.

The solid waste levy is lower in comparison to some other states. The current waste levy is $95.20 per tonne in Sydney and $53.20 per tonne in Melbourne, I am advised, and the levy is scheduled to rise further in both New South Wales and Victoria, with the levy in Melbourne scheduled to reach $58.50 per tonne by 2014-15.

There is also a strong argument that the waste levy should be consistent from one state to the next, particularly if they are close to each other, as we are with Victoria. If South Australia had a lower waste levy fee than Victoria substantially, it could provide an incentive for those within the waste industry to bring their waste from interstate to deposit it here.

This is a concern for Queensland, which recently removed its waste levy. Increasing the solid waste levy will also provide the South Australian community with other benefits, including continuing to influence behaviour change in some sectors when used in combination with other measures, resulting in diversion of waste from landfill to further re-use and recycling opportunities, reaching a point where investment in alternative resource recovery treatments will be as financially competitive as sending waste to landfill.

The levy is one of a suite of tools the government is using to support the reduction of waste to landfill. That has to be an important objective. Deterrence of interstate waste being dumped in South Australia is another string to our bow. The situation creates significant environmental risk, as well as many other potential issues that have broad social and economic impacts. Being close to parity with Victoria will eliminate this risk or reduce it significantly for us in South Australia over the border.

When used with other measures, such as grants, loans, education and awareness raising, which we do assiduously, this will encourage the diversion of waste from landfill, which will have a positive impact on the environment. The increases in the waste levy will drive diversion of waste from landfill to further re-use and recycling opportunities in some sectors. There are environmental advantages of resource recovery, such as saving valuable resources, avoiding the negative impacts related to extracting and processing raw materials, and a decrease in the impacts resulting from landfill, such as greenhouse gas emissions and contamination of surface and groundwater.

It should be noted that the Port Augusta city manager, I think Mr Greg Perkin, stated on ABC radio, I think this week or late last week (I am not sure), that recent rises in the solid waste levy will have minimal impact on the community, and he says that he expects the rising cost will result in households disposing of less solid waste. He stated:

The impact should be that people put less waste in their red-lidded bin—that seems to be the case in Port Augusta in the last year. So, if people are diligently looking and questioning what they are putting in their red-lidded bin to reduce costs, then that's a great outcome.

I can confirm that I have had discussions with the LGA about this matter and brief discussions with Mr David O'Loughlin—

The Hon. R.L. Brokenshire: He's not happy.

The Hon. I.K. HUNTER: —and with Ms Wendy Campana. They have heard the government's position. They have a different view, as the Hon. Mr Brokenshire has been interjecting across the chamber, but I think the evidence is on our side. Setting a price signal on disposable waste to landfill says to the community: we want you to re-use, recycle and stop putting your waste in landfill and deal with it in different ways.