Waste Policy Discussion: The Potential Unintended Consequences of a National Waste Levy

1. Introduction

2. Background

3. Generic Elements of the Draft National Waste Levy Proposal

4. Definition of 'Unintended Consequences'

5. Methodology

6. Possible Adverse Effects from the Introduction of a National Waste Levy

7. Discussion

8. Conclusion

2. Background

The New Zealand Waste Strategy 2002 is the core waste policy document in New Zealand. A national waste levy represents one of a range of economic instruments that could be implemented to encourage achievement of the goals of the strategy. A national levy would require a statutory instrument to enable collection and distribution of levy revenues.

There has been some concern expressed over the nature of the levy, and where the effects of a levy will be directed. New Zealand has the advantage of comparing levy structures in other countries as a way of informing policy choices here.

In March 2006 the New Zealand High Court determined that the Local Government Act does not give territorial authorities the power to tax. This meant existing bylaws in Auckland and Christchurch were ultra vires. In response to this decision, a proposal for a national waste levy was drafted by a number of parties involved in the court case, including some of New Zealand's larger urban councils and waste companies.

This proposal outlines how a national levy could work and provides a useful basis for discussion around some of the unintended consequences of a national waste levy. In the context of the proposal for a national waste levy, feedback was sought from industry and local government. Where possible that feedback is incorporated into the discussion below.