‘Pay-as-you-throw': businesses will pick up tab for waste collection under new rules

Maltese businesses that are large generators of packaging and domestic waste are getting a free ride on the municipal waste collection system. Now they will have to start paying a service charge included in the price of waste bags.

This is one of the major changes envisaged in a long-term waste management plan spearheaded by the environment ministry.

The ‘pay as you throw’ (PAYT) system for commercial establishments will come into force by 2023 (note: after the next general election of 2022), and will be based on a charge that is paid whenever people buy their waste bags.

To avoid any hardship on low-income families, free bags will be given to all households by the State.

The system, which will impose a higher cost on black bags, will ensure that businesses that embark upon separation at source will bear a lower cost of waste management than those who are more careless.

Waste bags can be currently purchased at any retail outlet with their price solely reflecting the cost of its production and importation. In the new system, the price will also include “a pre-payment for its collection or disposal”.

The volume of the waste bag and the type of waste it should contain, will determine the price of each bag. Rates for different bags will be differentiated, to incentivize the separation of waste.

While the service charge paid on all bags will be applicable to both businesses and households, a set amount of black waste bags for mixed and white waste bags for organic waste will be provided for free to residents. The households and their size will be identified through the ARMS database, which classifies buildings according to their current use.

The decision to provide free bags to households reflects government’s choice not to impose waste charges on households, to avoid imposing a burden on low-income households.

The new eco-tax will be preceded by the imposition of a mandatory and enforceable waste separation system in 2022, which will criminalize failure to separate organic waste at source.

Additionally, waste bags will be standardized with see-through material that will enable swifter enforcement action for those monitoring waste separation.

In order to facilitate the transition to the new waste regime, additional free Saturday and Sunday collections of organic waste will be organised in tourism zones.

The amount of waste generated by commercial establishments is as yet unknown, as a number of commercial establishments make use of the collection systems which is financed by local councils and which is intended for domestic waste. In 2018, 42,406 tonnes of mixed, residual waste was collected from commercial establishments who engaged private waste carriers. But this is considered to be only a fraction of the waste the business sector generates.

Moreover waste collected by private waste carriers ends up landfilled, as businesses are not expected to separate their waste.

Malta is currently not anywhere near mandatory EU recycling targets and others limiting the amount of landfilled waste. The current EU targets require that Malta achieves an overall recycling rate of 55%. Less than 40% was recycled in 2018. But EU targets require Malta to increase its recycled fraction to 70% by 2030. In the meantime, packaging waste has increased from 53,000 tonnes in 2011 to 69,000 in 2017.

“The harsh reality is that bad waste practices have led to the landfilling of waste that could have been avoided. Our landfill footprint clearly depicts the cost of drawn-out action, which we can no longer afford if we want to avoid the pain of further land take-up. We simply cannot continue mistreating our waste management responsibilities,” Minister Aaron Farrugia said in the foreword to the new policy.

The waste strategy warns that infringement procedures might follow as early as 2020 unless waste separation is not increased across the board by both commercial establishments and households.

Moreover, the financial allocation made to local councils for waste collection services is based on the number of households and is insufficient to cater for commercial waste. The lack of a regulatory framework discourages businesses who voluntarily separate their waste mostly out of corporate social responsibility.

Presently no obligations are imposed on operators of commercial establishments to separate their waste at source, nor to manage the waste they generate. The only obligation is for restaurants, snack-bars, bars, clubs, hotels and other tourism accommodation facilities to engage a third-party contractor to collect their waste.

But there is still no mandate to separate this waste at source, and enforcement is currently considered weak.

Apart from the new eco-tax on the price of waste bags, commercial establishments using the waste collection service offered by local councils must also pay an administrative fee. Establishments can still engage licensed waste carriers through direct contracts, but they must guarantee the separate collection of waste fractions.

After years of inaction under different administrations, Malta is faced with a ticking time bomb. The new long-term waste strategy is the first concrete attempt to discourage the dumping of unseparated waste.

The ‘Pay as you Throw’ system is just one of a number of measures proposed in the draft strategy.

One of the measures being considered is a smoking ban on several local beaches to limit the amount of cigarette butts littering beaches.

An educational measure being contemplated is a waste reduction reality television series. This reality show hosted by “a celebrity influencer” would follow the progress made by participants in reducing their waste and include a competition element. All citizens will have a chance to apply to be selected to take part.

Cooking roadshows and community cooking lessons will promote local produce, healthy eating and food waste prevention across various localities. Consumers will also get guidance on how the lifespan of electronic products, enabling them to make an informed decision when comparing value for money. The lifespan of such products would also be incorporated into the warranty for repair.

Incentives are also being considered for establishments renting wedding dresses, ball-gowns, tuxedos and higher priced, designer items, often used for special occasions and worn only one or few times.