Questions and answers on the new waste proposals

Background questions

What has the government announced?

Government has approved a package of measures to further minimise waste.

The package of measures proposes more use of regulatory back-up and price-based mechanisms, next to the current, largely voluntary approach to waste minimisation issues.

The proposed measures include:

A national waste levy
Legislation for product stewardship
New requirements for reporting on waste
New structures for the governance of waste
A new body to advise the Minister for the Environment on waste.

There will be better incentives and rewards for people, organisations and businesses to do ‘the right thing’.

The new measures will help ensure that the cost of a product reflects the full costs of its environmental, social and economic impacts.

Why is the government doing this?

Reducing waste going to landfill is crucial if we are to reach the true sustainability necessary to protect our environment. The proposed measures support other elements in the government’s package of sustainability initiatives, and take us further along the path towards a sustainable future for New Zealand.

The new climate change policies (including an emissions trading scheme), announced late September 2007, also contribute to this goal.

Where can I get a copy of the cabinet paper, regulatory impact statement and other information on waste minimisation?

All the relevant papers and information are available on or linked from the Ministry for the Environment’s website.

Cabinet paper: POL (07) 132 - Towards a Sustainable New Zealand: Measures to minimise solid waste

Regulatory impact statement: Towards a Sustainable New Zealand – Proposals for Product Stewardship

Regulatory impact statement: Towards a Sustainable New Zealand – Measures to Minimise Solid Waste

Recycling: Cost Benefit Analysis - COVEC report

The current waste issues also has links to information.

The Waste Minimisation (Solids) Bill

How do these proposals relate to the Waste Minimisation (Solids) Bill?

New legislation is needed to implement the new measures that are proposed by the government. The Waste Minimisation (Solids) Bill, currently before the Local Government and Environment Committee offers a vehicle to achieve this, although substantial amendments will be required.

That is why the Minister has prepared a Supplementary Order Paper (SOP). An SOP is a convenient tool for government to propose amendments to legislation that is before a select committee. It is drafted in the form of proposed amendments to the existing Waste Minimisation (Solids) Bill.

The Local Government and the Environment Committee will consider the SOP and report back to the House in due course, before the House votes on proposed new waste legislation.

The SOP proposes to amend the Bill in relation to product stewardship, a waste disposal levy, the appointment of a Waste Advisory Board, the role and responsibilities of territorial authorities and new reporting requirements for operators of waste disposal and recovery facilities and territorial authorities.

How do I find out about the process for the SOP and how can I be involved?

The SOP has been referred to the Local Government and Environment Select Committee. The Select Committee will decide what the process for the SOP will look like and whether further consultation will happen.

The Ministry for the Environment will continue its role as advisor to the Select Committee and officials are therefore not able to comment on the process and the contents of the Bill and SOP.

For information on the process contact the Clerk of the Local Government and Environment Select Committee:

Peter Hoare
Clerk of Committee
Office of the Clerk
Parliament Buildings
Wellington
04 471 9524
Email Peter.Hoare@parliament.govt.nz

Questions about waste levy

Why does the government want to introduce waste levy?

To secure funding to improve waste minimisation, such as reducing the amount of waste we create, and developing an effective resource recovery infrastructure to ensure as much as possible is recycled in New Zealand.

What are the key points of the levy?

A levy on waste disposal sends a clear signal about the way New Zealand views waste, and shifts the cost away from those who take responsible action to reduce waste, and onto those who do not.
It is proposed that a national waste levy applies to all waste disposed at landfill.
The levy is initially set at $10 per tonne excluding GST. This is likely to generate $31 million per year for waste minimisation improvements.
Operators of disposal facilities will have to pay the levy based on the weight of material disposed at the facility.
The levy will be collected by the Ministry for the Environment from disposal facility operators.
Operators of waste disposal facilities can choose to pass the cost of the levy on to their customers (households and businesses).
Operators of a waste disposal facility have to report to the Ministry for the Environment on the amount of waste disposed at the facility.
Fifty percent of the money that is generated by the levy will go to local authorities, on a population basis, so that they can improve waste minimisation in their area.
The remaining 50 percent (minus administration costs) of the money will be put into a contestable fund. Councils, communities, businesses and other organisations can apply for funding from this fund to set up new waste minimisation activities.
The Minister for the Environment will review the levy regularly to see whether it is effective and adequate.

Isn’t this just adding to the costs of compliance for business?

Those who waste will pay. Those that sort and recover waste will be able to avoid the cost, and effectively be rewarded for good behaviour.

Many companies already report that they divert over 50 percent of their waste from landfill, and there are outstanding examples of companies diverting over 70 per cent of waste for beneficial reuse. These companies are not only reaping the benefits of behaving in an environmentally sound way, but are saving money at the same time. The government wants to see more businesses adopt similar practices.

Will ‘cleanfills’ be levied?

The legislation allows for regulations to be made that could extend the levy to cleanfills at a later date but that is not the immediate priority of the government.

Isn’t the waste levy just another tax?

Operators of disposal facilities will be required to pay the levy on waste disposed at the facility. They may decide to pass this on to customers. Customers can reduce increased landfill costs by diverting waste and using separated waste recovery services so that materials can be sent for recycling, or reprocessing.

Won’t it create an incentive for more people to dump their rubbish illegally?

Recycling services are often provided free of cost and access to recovery facilities and services that provide for a wider range of materials to be diverted appropriately are growing. For example paint and cell phones can now be returned for reuse and recycling.

Product Stewardship

What is product stewardship?

Product stewardship schemes are a ‘cradle to grave’ tool that helps reduce the environmental impact of manufactured products.

In product stewardship schemes, producers, brand owners, importers, retailers, consumers and other parties accept responsibility for the environmental effects of their products – from the time they are produced until they are disposed of.

New Zealand already has voluntary product stewardship schemes operating for products such as packaging, used oil, whiteware, refrigerants, cell phones and paint.

You can visit our product stewardship web pages for more information.

What is the government proposing?

The amendments proposed are not a ‘one size fits all’ solution. They provide a selection of measures that the Minister can use to support product stewardship schemes.

Where industry is not taking action, and where the government feels that particular products need a product stewardship scheme, the legislation provides a process and criteria for the Minister to prompt industry into action.

The government still expects businesses to design and implement their own schemes, to allow flexibility in how problems are addressed and to ensure that those who know most about a product are involved in reducing its environmental impact.

The proposed legislation will give government the ability to recognise and reward businesses that do the right thing, through accreditation. In some circumstances, the government will require accredited schemes to be in place before products can be sold in New Zealand.

Existing product stewardship schemes will not be automatically accredited under the proposed legislation. Owners of schemes will have to apply to the Minister for the Environment to get their scheme accredited.

The Ministry for the Environment will work with business or industry groups and other parties involved in the life-span of a product, to design product stewardship schemes for priority products or other products.

Why are we proposing legislation?

Industries who already operate voluntary product stewardship schemes have asked the government for support, specifically by providing backstop legislation to catch free-riders.

Product stewardship schemes show a lot of potential to address many products that have previously proved difficult and costly for consumers and councils to handle. The ability to make regulations to support product stewardship scheme is designed to resolve this problem, to lead to a greater number of schemes with greater environmental outcomes.

The proposed legislation requires that the Minister to consult those that will be affected by regulations to enforce schemes.

What is going to happen to make this work in a practical sense?

Industry will be asked to design and implement their own schemes, to allow flexibility in how problems are addressed and to ensure that those who know most about a product are involved in reducing its environmental impact.

Examples of types of product stewardship schemes include:

Take back schemes where manufacturers, brand-owners, importers and/or retailers accept a product back for recovery or disposal at the end of the its useful life
Deposit/refund schemes where a consumer receives a refund of a deposit when they return the product for recycling or disposal at the end of its useful life
Labelling to inform consumers about the environmental harm caused by the product during its life-cycle, how to avoid or reduce that harm, provisions for recycling; or safe disposal of the product at the end of its useful life
Product design requirements to reduce the waste produced and encourage recycling.

Will businesses pass on these costs to the consumer?

Product stewardship is consistent with the polluter-pays principle by including the costs of a product’s environmental impact into the cost of the product. Without product stewardship, the costs of the environmental impact from a product are borne by society – ratepayers, taxpayers and the environment – rather than by the producer or consumer.

The producer may choose to pass the cost on to the consumer to recover their costs.

Responsibilities for local government in relation to waste management

Why have local governments waste management responsibilities been transferred from the Local Government Act 1974?

At the moment, the management of waste is covered by several Acts and regulations. Although these are considered to be comprehensive, the government thinks there is benefit from consolidating council’s roles and responsibilities for waste minimisation.

The new provisions will also allow central government to provide more direction and leadership to local government in the area of waste management and minimisation.

Why is the Minister able to direct territorial authorities to modify their waste management plans?

Territorial authorities are responsible for administering waste management and minimisation within their area. The Ministry for the Environment has identified a need for greater consistency across New Zealand in how this is done. Giving the Minister the power to direct territorial authorities to modify their waste management plans will improve consistency, encourage best practice and ensure that revenue from the collection of the waste levy is used to improve council performance.

Reporting

Why are you proposing changes in the reporting requirements?

A lack of comprehensive national data on waste disposal and recovery rates makes it difficult to measure our progress against targets. It makes it also hard to benchmark our performance internationally.

There is a particular need for high-level information to track trends over time of recycling and waste disposal which will allow for better environmental policy making.

The Government therefore proposes to legislate to require mandatory reporting by operators of disposal and resource recovery facilities.

The legislation provides a framework for reporting waste related information. Reporting requirements are needed to support levy monitoring and also to compile statistics and trends.

The Ministry will only use the information for the purposes described above. No detailed data will be published, only aggregated data that demonstrates trends in New Zealand will be released.

Will new monitoring and reporting requirements place more costs on businesses and councils?

While there are some costs associated with monitoring and reporting, much of the information will be easily accessible from standard company records. The information is also important in order to monitor progress and make good decisions (as outlined above).

Enhanced roles for the Ministry for the Environment

What new governance structures are proposed?

The role and responsibilities of local councils in the management and minimisation of waste is transferred into the proposed legislation.
There will be new responsibilities for the Minister for the Environment and the Ministry for the Environment.
A new dedicated waste unit has been established within the Ministry for the Environment to administer the new legislation and to make links across existing legislation like the Resource Management Act and the Hazardous Substances and New Organisms Act.
A new waste advisory board will be established under the new legislation to provide advice for the Minister on waste minimisation issues.
The Minister will monitor the use of the levy by councils and will also recommend products that need to be part of product stewardship schemes.

Recycling in public places initiative (not part of the proposed legislation)

What is the ‘Recycling in public places’ initiative?

This initiative was announced earlier this year and is part of the government’s broader sustainability agenda. The project will provide recycling facilities in metropolitan areas, areas with high foot traffic and tourist areas. The project is the start of a solution to address recycling issues in public places and has government funding until 2010.

With the initiative, government wants to enable people to be able to also recycle when they are away from home.

Who will run the project?

The project will be delivered by the Ministry for the Environment in partnership with local government. The project also includes working in partnership with industry to deliver recycling facilities at other, non-council owned public places, such as shopping centres, service stations and privately owned event centres.