Landfill tax hits volumes
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• The experts say Britain is one of the most wasteful societies in the world: we produce too much rubbish, don't recycle enough and Government policies aren't as green as they should be.
With the prospect of landfill sites being filled up faster than new ones can be dug the Government is trying to redress the balance by hitting people where it hurts most—in their pockets.
The landfill tax is designed to make the polluter pay. Every tonne of waste taken to a landfill site is priced at either £2 or £7 per tonne depending on whether it is non-biodegradable or biodegradable.
Initially the landfill operators will absorb the cost, but as charges to dump waste rise all those handling it will be expected to pay, with the final bill eventually landing on the customers' doorstep.
Skip and tipper operators will be caught in the middle and once again hauliers will be left to count the cost.
Not only will there be less household waste to move-higher prices will make the public less inclined to hire skips—
but the private sector will be looking at ways of recycling more material.
Following a mini-boom in September, the result of contracts being rushed through to escape the tax, hauliers across the country have seen a big drop in business over the past six weeks.
"Volumes in general are down, but construction waste in particular has been hit because it's where the highest percentage of increase has occurred," says Richard Crocker, secretary of Roseland Plant Landfill and Recycling Centre.
South Wales operator Maurig Jones says business is so slack that if it continues he will consider pulling out all together. I think 60-70% of operators are thinking of packing it in after all this," he adds. "One phoned me up the other day saying we should all stop paying it and stick together."
Greater Manchester-based Boardham Truck Hire has had days recently when all of its five tippers have stood still; something that never used to happen. Managing director Tony Man-ley says: "Every night we are struggling for the next day and business has halved. I don't think it could be too long until I'm forced to give it up."
Clive Hunt, who operates 30 vehicles out of Leyland, Lanes, has already been forced to cut his fleet by five and expects more losses soon because volumes are down 25% on last year.
Another Manchester haulier, W Mayers and Sons, was half way through a contract when its customer decided to stop tipping and bring the level of the ground up to avoid paying the tax.
Some operators are faring slightly better. John Thompson is managing director of Crawley-based M Matthews which runs 20 tippers; he says that while work dried up in October it is gradually starting to pick up again.
Firms that could benefit from the tax are those with recycling facilities and transfer stations that can sift waste and sell some of it on.
One such operator, Manchester-based Chart Range, is carrying half the usual volume but doubling its profits. Manager John Kennedy says: "It's the best thing that's ever happened to us. Volumes are down but there's more money involved in it. Those that aren't geared up to recycling will go out of business."
Flytipping has long been the scourge of the waste disposal industry, and the Landfill Tax has only heightened fears that it's going to increase.
Richard Crocker says despite the Environment Agency's pledge to crack down on fly tipping he believes they seem to be turning a blind eye to less harmful waste being dumped in unregistered sites.
Tony Cook of the Road Haulage Association confirms the drop in waste being disposed of points to an increase in fly tipping. "There is that element in the transport industry and it undermines the sector who try and do it by the book," he says.
Janet Manning Shaw of the Environmental Standards Agency says hauliers being undercut by the rogue element should remind customers that they too have a legal responsibility. If an illegally dumped load is traced back to a company or individual a stiff penalty will be imposed as everybody is now accountable.
Things look like getting worse before they get better. Tax bands could be raised at the next Budget—it's even possible the lower band could be scrapped, leaving all waste to be charged at a tonne.