Tip pricing policy

G. Ho

The disposal cost of solid waste has constituted only a small portion of the total public cleansing budget of local authorities. Only between 11% and 23% of the total amounts spent for waste handling in Australia are allocated to disposal activities (ACI Technical Centre, 1973). Emphasis has been given to the collection and transportation of the waste, where we have progressed considerably from the 'horse and buggy’ era to the use of modern compactor collection-vehicles, and presently the implementation of the total waste collection system in a number of local government areas (Logan, 1981). The current low cost of disposal is primarily due to the rudimentary landfilling method generally employed. Rises in disposal cost will be inevitable because of the following reasons. The community is more aware of the quality of its environment. Odour and blowing debris from a landfill site and smouldering fire at the site are no longer tolerated. Contamination of ground and surface water by leachate from the landfill is perceived as a hazard, and compliance with the World Health Organisation Model Code of Practice for the Disposal of Solid Waste on Land (WHO, 1974) is considered to be the minimum standard for sanitary landfilling. All these factors will increase disposal cost gradually. A drastic increase in disposal cost will, however, occur when a local authority runs out of a suitable landfill site within its boundaries close to where waste is generated. Available alternative disposal methods (transfer station, incineration etc) are several times costlier than sanitary landfilling. The cost of disposal may then be equal to or exceed collection and transportation cost. The impact of a drastic increase in disposal cost and hence tip charges on the movement of waste between local government areas, its implication for the planning of waste disposal for local authorities for the formulation of a sound tip pricing policy are considered in this paper, with particular reference to waste disposal in the Perth Metropolitan Region.

Tip pricing policy

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