Competition has forced the Waitaki District Council to cut the fee for dumping rubbish at its Oamaru landfill to retain volumes and ensure it does not run at a loss.
One private contractor is planning to transport the waste it collects to Dunedin from February, a cheaper option after trucking costs than dumping it in the Oamaru landfill.
At present, the council charges $174 a tonne for disposal at the Oamaru landfill.
Yesterday, it reduced that to $155 a tonne from February 14.
This financial year, it had budgeted on 10,500 tonnes going into the landfill, earning it $1.6 million and a profit of $650,000, which subsidises other solid waste activities such as rubbish transfer stations and recycling.
The high charge was also aimed at encouraging people to minimise waste by recycling.
Reducing the fee to $155 a tonne would reduce income to about $1.2 million.
Private waste contractors could transport rubbish to Dunedin for less than $150 a tonne.
Assets group manager Neil Jorgensen said the reduction would resolve the issue of competition and make the landfill viable in the short to medium term.
The next step would be to look at all solid-waste issues in conjunction with preparing the 2011-12 annual plan.
Cr Jim Hopkins agreed the fee reduction was an interim measure, and a perfectly rational response to the market.
Cr Peter Garvan said the decision was not ideal, but the reality was, the landfill would make a major financial loss if nothing was done.
In addition to cutting the fee, the council decided to retain the $10 a tonne discount for major waste disposers who have a council-approved waste minimisation plan.
All other fees relating to solid waste will remain the same.
