“Difficult position” forcing STSB to propose recycling charges

Monday 27 June 2022

The States’ Trading and Supervisory Board is proposing a new recycling charge - 25p per blue and clear bag - to fill a waste funding deficit.

Due to the success of the Waste Strategy implemented in 2018, Guernsey Waste has not generated enough revenue from black bag sticker sales to fund the provision of waste and recycling services.

The pay as you throw sticker charge has raised more than £2 million less than forecast.

To tackle a £1.4 million to £1.8 million deficit STSB has published proposals to fill the hole with money from the States’ general revenue budget. Additionally, it wants to introduce a recycling charge of 25p per bag.

“As a Board, we have been given responsibility for the States-owned trading bodies, and tasked with operating them on a commercial basis. That is proving particularly challenging in the case of Guernsey Waste,” said the President of STSB, Deputy Peter Roffey.

“We have a strategy that aims to reduce the amount of waste that we generate as a community. At the same time, we rely on that waste being produced to meet a significant proportion of the costs that we incur in managing the island’s waste and recycling. No other commercial operator that we are aware of would be actively looking to prevent its primary source of revenue.” 

Pictured: Islanders might have to pay a small recycling charge in the future.

The Waste Strategy has been phenomenally successful. It aimed to see 70% of all household waste recycled by 2030 and this target has already been met.

“At the outset, there was an expectation that the combination of the sticker charge and the annual charge would raise enough for the system to be self-funding. However the strategy has already been so successful, and islanders have embraced the new arrangements to such an extent, that has not been the case so far and we do not foresee it becoming self-funding in the foreseeable future,” said Deputy Roffey. 

“We have examined potential options, and we do not believe it is sensible to retain the current reliance on waste charges to meet the full costs of the strategy. Particularly given developments elsewhere, which could help drive down further the amount of waste being produced as governments look to encourage more sustainable use of resources.” 

STSB is also proposing that current collection arrangements are reviewed to see if any improvements can be made.

If the proposed recycling rate is now agreed to, the deficit will need to be met by central government funding.