Work has begun to demolish Canberra’s fire-damaged recycling facility at Hume, so a larger plant can be built on the site.
The originals Materials Recovery Facility, which processed 60,000 tonnes of waste a year, was destroyed by a fire on Boxing Day 2022 after lithium batteries were incorrectly disposed of.
Government ministers described its loss as “a significant setback for recycling” in the ACT and region: six NSW councils also used the facility. Since then, ACT recycling has been transported to facilities in Sydney and Victoria.
Construction will begin next year, and the plant will open in 2028. It will be designed, built, and operated for 20 years by Veolia.
It will process up to 115,000 tonnes of recyclables annually – up to 50,000 tonnes more per year than the previous recycling facility. It will feature advanced sorting technology, community education facilities, and state-of-the-art fire safety systems.
The demolition will take several months. The public is advised to stay away from the site.
Until the new facility is built, the current contractor, Re.Group, will manage interim recycling services for the ACT.
Non-recyclable or flammable items should not be disposed of in recycling bins.
The facility is jointly funded by the ACT and Australian Governments.
The Canberra Liberals criticised the government’s decision to build a new facility, claiming it would cost taxpayers $223.6 million more than continuing to use interstate recycling services.
Opposition leader Leanne Castley MLA said a newly released business case showed the government’s preferred option was 65 per cent more expensive, with no clear economic benefit.
The business case reportedly estimates the local Materials Recovery Facility would cost $565 million over its lifetime, compared to $341 million for interstate processing, with a net cost to the community of $152 million.
The ACT Government rejected Opposition claims that the facility would cost $230 million more than continuing to use interstate services, arguing the figure misrepresented the business case.
The government says the actual cost difference is closer to $25 million, and that the new facility will generate revenue, process more recyclables, and provide greater security, local jobs, and environmental benefits over the long term.
It accused the Canberra Liberals of misunderstanding the figures and of proposing an unsustainable alternative.
The Canberra Liberals say the ACT is being “short-changed” because it cannot collect payroll tax from Commonwealth public servants.
Shadow treasurer Ed Cocks claims the ACT is missing out on up to $750 million a year, which he argues could help repair the budget and fund essential services. He accused ACT Labor of failing to press federal colleagues for compensation through the Commonwealth Grants Commission.
The Liberals will lobby federal ministers and the Commonwealth Grants Commission today for that compensation.
Chief Minister Andrew Barr MLA told Estimates hearings the Grants Commission already adjusts GST distributions to account for the ACT’s inability to levy payroll tax on the APS. He conceded the adjustment lags and varies year to year. He described attempts to calculate the exact figure as “an absurd academic exercise”.
The ACT Greens claim Labor is undermining their plan to re-naturalise Sullivans Creek, and accuse the government of abandoning reforms introduced during the last term.
Greens leader Shane Rattenbury MLA said Labor “keeps pulling the plug on positive Greens initiatives that had strong community backing”, including a new Safe Haven, cutting the Rent Relief Fund, abandoning evidence-based advice from the Law Reform and Sentencing Advisory Council, gutting support for community organisations like the Technology Upgrade Fund, and letting the climate strategy expire completely.
Mr Rattenbury said that the Sullivans Creek project could be delivered gradually as a long-term investment. Organisations like the Dickson Tradies Club have proposed re-naturalising the creek as part of their development plans.
The ACT Government says it is not planning major re-naturalisation works for Sullivans Creek, estimated to cost $300 million, but that the 2024 Opportunities Report still informs smaller projects. A flood study is underway, and further water quality research is due in 2026 and 2027.
