Giant paper recycler joins fight

The country's biggest recycled waste-paper processor has joined the Steptoe Brigade to fight a waste bylaw mooted by three Auckland councils.

Carter Holt Harvey claims the bylaw's financial demands will sap recyclers' profits and pose a threat to the operation of its Penrose paper mill.

The company intends to go over the heads of the Waitakere, North Shore and Rodney councils to lobby the Conservation Minister to step in and snuff out the bylaw while it is in the consultation phase.

"The bylaw would seriously disadvantage businesses engaged in recycling and remanufacturing," said Carter Holt's chief operating officer of pulp, paper and packaging, Rhys Jones.

"Bonds and taxes proposed in particular would render recycling operations such as Penrose uneconomic."

The Penrose mill is the only one in the country that processes wholly recycled paper.

The councils' joint proposal for overhauling their rubbish bylaws has already earned notoriety, with a proposal to make scavengers buy a $300 annual licence to pick through household inorganic collections.

All waste collectors - including recyclers - will pay this for a licence.

The bylaw aims to give councils control over collection, cartage, disposal and treatment of solid waste and to give financial incentives to use alternatives to dumping waste in landfills.

But Mr Jones said the bylaw would backfire on the council.

The recycling industry provided a huge benefit to the region by diverting waste from landfills, he said.

"The effect of the bylaw, however, would result in more waste going to landfill and a higher cost to ratepayers and industry."

Waitakere City Council, which is leading the bylaw revamp, said it was mystified by the company's outburst.

"We wonder if they are recycling the paper - or smoking it?" said senior councillor Janet Clews.

She said Waitakere and North Shore councils had just signed a deal with contractor Onyx to collect paper waste for 10 years.

Onyx sells the recycle-quality paper to Carter Holt's Penrose mill.

The contract, which begins on July 1, will add 20,000 tonnes of recycle paper a year to the 230,000 tonnes that Carter Holt already draws nationally.

"That is not a threat to Carter Holt Harvey's business - it is a boon," said Mrs Clews.

She said councils could not impose taxes, and that licences to operate, bonds and levies already existed in the 1999 Waitakere waste bylaw under review.

Licences to operate would protect legitimate waste collection and recycling contractors and make their businesses more viable.

Mrs Clews said the bylaw was open to discussion and decisions would not be made on the exact levy, licence terms and conditions until year's end.

Waste plan

* The draft waste bylaw wants:

* Collectors to pay $300 for a one-year licence.

* Councils to consider the fitness of waste collectors for a licence.

* Collectors to post a $150,000 performance bond against spillages.

* A levy on waste to landfill to discourage dumping waste.

* Clean up rubbish spills or face fine of up to $20,000.