Minister signals change on waste charges

Wednesday 21 June 2017

Controversial new waste charges could be brought in gradually, following concerns from local businesses - and the Minister responsible for building the economy has questioned whether they are actually needed at all.

Speaking in the States yesterday, Economic Development Minister, Senator Lyndon Farnham, said that the Council of Ministers had decided last week to consider phasing in the new charges, which will be paid by "non-households" - which includes businesses and organisations such as sports clubs.

Deputy Montfort Tadier questioned the Senator on what information he had regarding the “impact of proposed liquid waste charges on business particularly on the hospitality and agricultural industries” and on whether he thought “sufficient consultation on the proposals has taken place with businesses.”

Senator Farnham replied: “Whilst we all accept the principle of this charge, and businesses do want to make their fair share of their contribution to the Treasury, I am concerned about the timing of the charge.”

“Given the impact of Brexit and the sharp fall in sterling, business across all sectors of the economy are seeing a sharp rise in input costs. Together with a liquid waste charge, a solid waste charge, additional control of housing and work fees, planning and development fees and other charges, sir, I think further discussions need to be had about perhaps phasing in of these.”

Senator Farnham also revealed that at the Council of Ministers meeting last week there was an agreement that he would meet with the Infrastructure Minister and the Treasury Minister to discuss the possibility of phasing the charges in. 

Explaining his reasoning for the need introduce the charges gradually Senator Farnham said: “When this charge was conceived I think we were looking at a very different fiscal landscape. We weren’t in possession of the good news of the bonus we’ve had recently with the very good performance of our investments.” 

“I think there is an opportunity for us to look at this and work with our industries at this important time of the economy to ensure that we can introduce it in a manner that suits industry.”

He said: “We are expecting high inflation..." and added "...I think we want to do all we can to avoid putting additional pressure on our inflation forecasts.”