Hefty rise in landfill tipping fees shocks industry

The Federation of Industry was outraged after it learnt that landfill tipping fees are to be practically doubled.

The measure, which comes into effect on February 16, will deal a further blow to the construction industry, the FOI claimed.

But WasteServ Ltd defended the move, saying it provided an added incentive for the industry to reduce its waste and consider the impact of growing amounts of waste on the environment.

The FOI was called to an urgent meeting on Thursday to be informed by the chairman of WasteServ that the landfill tipping fees for construction and demolition waste will increase to 73 cents per tonne from the current 39 cents per tonne.

The FOI representatives protested that the increase was just another government-induced cost to the construction industry.

The federation delegation emphasised that due notice should have been given about the increases to enable sufficient consultation with all stakeholders.

At the meeting, the FOI representatives were informed that the increase was based on a government-commissioned report whose conclusions stated that the rise in fees would not cause a big increase in costs to businesses.

The federation questioned how this measure was going to be enforced when fly-tipping was already rampant and bound to increase with the additional costs.

FOI officials said they were shocked to hear that the fees would eventually have to go up to Lm1.18 per tonne to cover the fee being paid by the government to the contractor tasked with disposing construction and demolition waste into quarries.

The FOI said it is extremely worried about how building contractors and other business operators are going to recover the rise in costs when they may have already committed themselves in their costing.

In fact, certain large contracts specify that there should not be any increase in costs for any reason whatsoever. It is also bound to increase the prices for public service projects including roads and excavation works for public corporations.

"This move will not contribute to business competitiveness nor maintain the levels of employment in the construction industry, nor keep cost inflation down.

"It is ill-timed in the present economic situation, it is exorbitant and an added cost to the general public," the FOI charged.

When contacted, a spokesman for WasteServ said the price was increased to recover the expense of waste management.

"The generation of construction waste is rendering an extensive cost for its disposal. The expense of construction projects can be reduced drastically through recovery and recycling initiatives."

Public entities may contribute to the reduction of such costs by directing their waste to reduction and recycling activities and this would lead to minimisation in waste generation, WasteServ said.

The establishment of sustainable waste management facilities for an improved environment needs to be met through waste reduction. The aim is to reuse materials and to dispose of them in a manner which will not have a negative impact on the environment, it added.

Asked whether the increase in cost could encourage illegal tipping, the spokesman said the increase in cost was related to recovery of the expenses involved in the disposal and recycling of construction waste.

Following the increase in landfill tipping fees, WasteServ Malta Ltd would assist local authorities to prevent any form of illegal dumping.

WasteServ would not confirm that the fees would eventually go up to Lm1.18 per tonne.