CRD Amends Recycling Contract to Protect Blue Box Program

Feb 11, 2009

Victoria, BC - The Capital Regional District voted today to amend recycling contracts with Metro Waste Paper Recovery Inc. and Steel Pacific Recycling, in light of current economic conditions. The global downturn in commodity markets for recyclables has had an adverse effect on the value of recyclable products.

“Recycling programs across the country are facing similar challenges, and Metro is currently warehousing its low grade plastics, including plastic bags, pending the availability of new markets and end uses,” said CRD Board Chair Geoff Young. “By amending contracts, we are responding to losses faced by our local recycling companies and ensuring that recycling in the Region will continue into the foreseeable future.”

Current contracts with Metro and Steel Pacific are set to expire in 2012 and 2011, respectively. With the amendment of the contracts, the revenue floor price for the sale of paper fibres with Metro will be deleted, with revenue payments now calculated solely on the market price for the month, which will reflect the true value of the materials. Steel Pacific’s contract will be amended by deleting the fixed unit price per tonne for the sale of materials and replacing it with a processing fee per tonne to the contractor and a revenue payment to the CRD based on market price.

CRD Chair of the Environment Committee Alice Finall commented, “The blue box program is an integral part of the CRD’s programs and accomplishes commendable waste reduction for our region.” The CRD’s blue box program, which celebrates its 20th anniversary this year, diverts over 19,000 tonnes of valuable resources every year from Hartland Landfill.

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For further information please contact:
Sheila Taylor, Manager, Community Relations
Office: 250.360.3308
Cell: 250.216.4427