IN the wake of a fire that destroyed one of its main waste processing facilities, the Southern Metropolitan Regional Council has come under renewed criticism from state politicians.
IN the wake of a fire that destroyed one of its main waste processing facilities, the Southern Metropolitan Regional Council has come under renewed criticism from state politicians.
The SMRC was earlier this month forced to make urgent arrangements to manage rubbish from Perth's southern suburbs following the fire that destroyed its recycling plant in Canning Vale.
In recent years the waste management authority has been forced to develop a costly odour abatement plan, been plagued by millions of dollars in losses - including from investments in 'toxic' investment products promoted by failed investment bank Lehman Bros - and faced the City of Canning's exit from the council.
WA Business News understands that some of the remaining SMRC member councils - which comprise Cockburn, East Fremantle, Fremantle, Kwinana, Melville and Rockingham - are also considering pulling out.
Member for Jandakot Joe Francis has called for SMRC chairman Doug Thompson and chief executive officer Stuart McAll to resign in the wake of a pollution study that revealed the Canning Vale composting plant is releasing noxious odours.
Mr Francis has accused Messrs Thompson and McAll of failing to act responsibly when dealing with odour issues, which have plagued the community for years.
Riverton MP Mike Nahan said the fire, which is estimated to have caused several million dollars in damage, could signal "the end game was nigh" for the SMRC.
"It will be closed, not just for odour pollution but because of excessive costs," Dr Nahan said.
"Its business case has evaporated. Since 2004, its costs for processing a tonne of municipal solid waste have increased from $36 per tonne to $137 per tonne in 2009-10. "That is an increase of 400 per cent in the last five years.
"In addition, the recycling market has collapsed, the SMRC has suffered a catastrophic fire, it currently has loans of more than $55 million, it needs to invest a further $2 million to try and address the odour emissions, and its expenses are set to rise further.
"The SMRC simply is not financially viable."
Despite estimated losses of more than $6 million since 2007, SMRC chairman Doug Thompson said the waste management facility was never designed to make a profit.
"The council has made no decisions about rebuilding [the recycling facility] or otherwise; we're still waiting on insurance assessment and that sort of thing," Mr Thompson told WA Business News.
"Municipal waste management in Western Australia has always had to be subsidised by local government.
"It's a service provided for a cost but it's not about making a profit and when you start talking about profits, it's a misunderstanding of the role of local government."
