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Following is a question by the Hon Frederick Fung Kin-kee and a written reply by the Secretary for the Environment, Mr Edward Yau, in the Legislative Council today (November 12):
Question:
It has been reported that the current financial tsunami has struck a heavy blow to the recycling industry in that the recovery prices for waste paper and scrap metals have plummeted, thus affecting in varying degrees the workflow of waste recycling activities in the community. For instance, some recyclable waste collectors have ceased operation, some of those participating in the recycling programmes in housing estates have refused to accept certain kinds of metal and reduced the number of basic necessity items that can be exchanged with waste paper, which in turn have discouraged the public from participating in such programmes. In this connection, will the Government inform this Council:
(a) whether it has assessed the impact of the financial tsunami on activities to reduce waste and the work to promote waste recycling activities, including the impact on the recycling industry at various levels, the overall quantity of waste collected in the short term and medium term and the implementation of recycling programmes in the community by subvented community organisations and environmental groups; and
(b) what measures, including those to assist the recycling industry, will be put in place to ensure that such recycling activities can continue to be carried out during an economic downturn?
Reply:
President,
(a) All trades and industries in Hong Kong have been hit by the global financial tsunami, and the recycling industry is no exception. The market prices of major recyclables, like those of other commodities and raw materials, have significantly dropped. The market prices of waste paper, scrap iron and waste plastic have plummeted from the peak of about $2,000, $4,500 and $1,800 per tonne to the present $700, $500 and $800 per tonne respectively. This has affected the work on waste reduction and the promotion of waste recycling.
In respect of waste material exporters, apart from the plunge in the recovery prices, they are faced with difficulties such as a decline in the number of orders and more harsh terms of orders. Given the exporters’ stricter requirements on waste quality amidst the market downturn, there have been recent cases of sub-standard waste being rejected and returned to collectors. Nevertheless, the information we have obtained shows that the export of waste has generally remained normal.
As for the collectors, given their relatively small scale of operation in general, they have to make significant adjustment in both cost control and quality management of waste at a time when the recovery prices of waste remain low. With the plunge in the recovery prices of waste, the profits that can be shared with upstream parties have dropped accordingly. Nevertheless, the public, community organisations and green groups should continue to actively promote waste recovery and reduction, which will also help alleviate the problem of generation and disposal of solid waste on the whole. The Government will continue to encourage and support the education and promotion work on waste reduction carried out by various organisations.
(b) The Environmental Protection Department (EPD) is closely monitoring waste disposal at landfills. For the time being there is no sign of large quantity of recyclables being delivered to landfills for disposal.
Through the established network of the source separation of waste programme, the EPD has encouraged property management companies and residents of housing estates to continue participating in source separation of waste in the face of diminishing financial incentives. In view of the recent market situation, the EPD is keeping a close watch on the waste recovery work in housing estates. After checking with over 400 housing estates, we learned that waste recovery operations for most of them remained normal. However, the waste recovery prices offered by recyclers have dropped in response to changes in market conditions. Some estates have been informed by their recyclers that collection services at their estates would be suspended. We have advised these estates to find temporary storage for the recovered materials while we help them look for other recyclers.
To cater for the needs of small and medium enterprises, including the recycling trade, the Government has promptly amended the SME Loan Guarantee Scheme (SGS) to help the trade tackle their cash-flow problem. The EPD has disseminated the message to the recycling trade associations immediately to encourage them to make use of the SGS to tide over the difficult times. The Government will continue to lease short-term tenancy sites exclusively to the recycling trade and maintain close liaison with the trade to actively study other measures that will help alleviate their difficulties, such as providing more short-term tenancy sites to the trade for temporary storage of recovered materials. The EPD will continue to closely monitor waste disposal at landfills.
Ends/Wednesday, November 12, 2008
Issued at HKT 15:30
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