[Not government policy]
2. Background
The concept of a waste levy featured strongly in the Waste Management and Minimisation Working Group Report [Ministry for the Environment 2000, Towards a National Waste Minimisation Strategy]. It was identified as a waste minimisation levy. Work on investigating a levy was recommended as a joint local and central government action “as a means of funding regional and local waste minimisation initiatives”. It was linked to a further recommendation to apply the ‘use pays’ principle. This reflected the working group’s view that there was a role for both an additional penalty on waste disposal and an injection of funding for waste minimisation. Submissions were sought on that report and over 250 were received, many in favour of a waste levy. [Both Waitakere and North Shore City Council submitted in favour of a national levy although the latter noted that it should be collected locally. Rodney, without an elected council at the time, sent an officer’s submission in support of a levy.]
The possibility of a waste levy was also identified in the New Zealand Waste Strategy [Ministry for the Environment 2002, The New Zealand Waste Strategy] within the framework of a range of initiatives with the general description of economic instruments. It noted 2003 as a target date for ‘considering’ waste levy options. The Ministry for the Environment examined the role and function of a levy on waste through 2000-2002. It commissioned a study by the New Zealand Institute of Economic Research [New Zealand Institute of Economic Research (Inc) 2000, A Landfill Levy: economic principles and implications of implementing and landfill levy] and prepared a draft discussion document. This draft document was completed in 2002 and while it has had wide informal distribution, it has not been officially released [Ministry for the Environment 2002, A Waste Levy for New Zealand ? – an unpublished draft discussion document exploring the issues]. The draft discussion document, while addressing both the revenue generating and behaviour modifying objectives for a levy, gives emphasis to the latter objective.
The possibility of a levy or charge on solid waste disposal was canvassed briefly in a 2001 tax review published by The Treasury [McLeod et al 2001. Tax Review 2001: final report. Wellington: The Treasury]. The report’s authors saw “little need for a national levy or charge”, concluding that “overall, the environmental impact of landfills appears to be satisfactorily addressed by existing environmental regulation and the allocation of responsibility for waste disposal to local government bodies.”
The power for by-laws to be introduced by Territorial Local Authorities to license collection and transportation of waste of any kind was introduced in the Local Government Act 1974. The Act also allows local authorities to allocate the costs of implementing their waste management plan in a way that establishes economic incentives and disincentives.
New powers and responsibilities for waste minimisation and management were introduced in the 1996 Amendment to the Local Government Act 1974. The changes were designed to enable local authorities to establish modern waste management practices. The amendment made the adoption of waste management plans mandatory. The new provisions addressed licensing systems to control the (adverse) effects associated with waste management activities and the collection of information about waste flows.
A number of Territorial Local Authorities subsidise waste minimisation activities, with revenue from tipping fees being set at a higher level than disposal costs contributing in some cases (eg Wellington, Christchurch, Napier/Hastings). Christchurch is the only Territorial Local Authority that has formally collected a levy on waste disposal using by-laws. It first collected a waste minimisation fee on waste tipped at its own waste facilities in 1998 and introduced a Cleanfill Bylaw in 2004 to enable a waste levy to be applied to certain cleanfill wastes. In 2005 it introduced a Waste Facilities Bylaw allowing it to require privately managed waste facilities to collect a levy on the council’s behalf. The revenue is designated for waste minimisation activities.
In 2005, three Auckland Territorial Local Authorities - Waitakere City, Rodney District and North Shore City, collectively referred to as the North-West Alliance, introduced a similarly worded by-law to require all waste collectors operating in their areas to be licensed. The Waitakere City Council Waste Bylaw 2005 is reproduced in Appendix 2. The by-law requirements cover a licensing fee, compliance requirements, information supply and bonds, and made provision for a waste levy [Waitakere City already had a waste levy applied to its contracted waste collector. It covers all waste and recyclables collected in that city. The other councils have yet to impose one]. The proposed levy would be applied to waste collected from a particular Territorial Local Authority area and would be paid by the waste collector to that Territorial Local Authority. While it is a levy or tax on the generator of the waste, it is collected by the waste companies on behalf of the Territorial Local Authorities.
The by-laws came into effect in August 2005 and are at present subject to a judicial review in the High Court of the three Auckland Council’s use of the Local Government Act levying powers in this way [Christchurch City Council is also named in the judicial review]. The parties mounting this challenge are Fullcircle (Carter Holt Harvey) and Waste Management NZ Ltd. The case was heard in February and the parties are now awaiting the determination.
At the 2004 Annual General Meeting of Local Government New Zealand a remit was passed to promote an amendment to the Local Government Act to more expressly provide for the allocation of costs in the form of waste levies on licensed waste collectors and operators of waste facilities. Parts of Government are considering this.
Strong representation has been made to the Ministry for the Environment from large Auckland-based waste companies seeking a national waste levy [While the more determined call for a national levy came from late 2004, some waste company leaders had been publicly supported a waste levy from the time of release of the Waste Minimisation and Management Working Group’s report]. The reasons for this are discussed below. Strong representation has been made to the Department of Internal Affairs and the Ministry for the Environment by Local Government New Zealand and some Territorial Local Authorities to use the Local Government Law Reform Bill, proposed to be introduced into Parliament soon, to clarify and affirm local government’s right to impose a waste levy by-law.
