A local rubbish collector says Tauranga City Council's plan to take over kerbside collection of glass later this year is deterring established commercial operators from introducing their own separate services.
But a councillor says having the commercial sector in charge has "failed", and it is time for the city to take back control of the service.
Robin Horne of Bin Boys said the council's proposal to introduce a rates-funded glass recycling service by September had created "uncertainty" for businesses.
"Rubbish companies are not prepared to buy extra trucks and bins only for the council to say 'we don't need you' in two years time."
The public outcry over the loss of glass recycling pick-ups had clearly shown people wanted a kerbside glass service and there was a commercial opportunity, he said.