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Waste levy hike places burden on Victorian business

19 July, 2006

The Australian Industry Group has called on the State Government to provide matching annual funding to offset a four-fold increase in levies charged on prescribed waste, saying the higher cost would place a hefty burden on business.

Ai Group said manufacturers faced an annual $5 million impost as a result of the increased levy, which would rise to $130 a tonne from $30 previously.

“The Government gives with one hand and takes with the other,” Ai Group Victorian Director Timothy Piper said. 

“It provides a WorkCover premium reduction in May and then imposes a massively increased waste levy in July. It does not make sense. 

“While industry plainly understands it must shoulder at least part of the burden to cut waste, we strongly believe the Government should provide matching funding if it is serious about reducing waste. Failure to do so will add further pressure to manufacturing’s viability.” 

Piper said it appeared the Government did not fully appreciate the external competitive pressures on the industry. 

“The Government has publicly acknowledged that industry has already contributed significantly to cutting waste in recent years. But despite these efforts, it is determined to place further impositions on industry,” he said.

“The Government cannot continue to increase costs on manufacturers without it having an impact on their capacity to compete and their willingness to stay in Victoria.”

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