CHARGES FOR collecting recyclable waste from householders and businesses may be increased, private waste management companies have warned following a collapse in the international recycling market.
Minister for the Environment John Gormley has said he will help waste management companies facing falling profits due to the downturn in the recycling market.
However, he says he cannot give direct financial assistance to the sector because of regulations in relation to State aid.
Waste firms held an emergency meeting in Portlaoise yesterday to discuss the recent dramatic fall in the price recyclable materials, such as are typically deposited in household "green" bins, were fetching on international markets. Just eight weeks ago a tonne of paper could be sold for $200, that has now dropped to $75.
Irish companies claim they cannot afford to sell at such a low price and if they are to continue to collect recyclable materials from householders, businesses and local authorities, they urgently need increased storage.
However, storage was just a short-term measure, the IWMA, the Irish Waste Management Association said yesterday, and a long-term solution to the price fall was needed.
"The collapse in commodity prices is an issue that the IWMA identified a number of weeks ago and since then we have been working towards finding a solution to the current difficulties," association chairman Jim Kells said.
After the meeting, Mr Kells said that the fall in the price that companies could get for waste would inevitably hit householders.
"To date the market has been very buoyant and recycling rates have increased, but the recent fall in commodity prices will have an impact across the retail, commercial, industrial and household sectors."
Mr Gormley said that he would "help in anyway that's open to me", but he added that financial "pain" would have to be borne by the waste companies.
"We must remember that this is a commercial sector which would generally be quite profitable but will now have to work its way through a difficult period," he said.
Domestic bin charges were a matter for local authorities or waste companies offering private services, he said.
Dublin City Council said it would not be increasing recycling charges at its bring centres or imposing a cost on the collection of green bins in response to the changes in the international market.
However, Greenstar, which operates household collections in a number of other local authority areas, warned that there would be "a cost implication for waste producers".
"We can't ignore the possibility that there may be an impact for consumers next year, although we will do everything we can to mitigate against that," a spokeswoman said.
Mr Gormley said companies could apply to the Environmental Protection Agency and local authorities for licences to enable them to store additional waste.
The Minister said he had also set up an action group to identify solutions to the current crises within the next two weeks.
