THE government is to make local authorities pay more to dispose of waste.
In an announcement this afternoon, the government revealed that its £5.7 million annual waste disposal subsidy for local authorities and private businesses is to be phased out over the next six years.
The move, approved by the Council of Ministers, will save the taxpayer an additional £1 million each year between 2013 and 2018.
In effect, however, the cost is to be shifted to the ratepayer.
At the end of the period the island’s local authorities, which are legally responsible for domestic waste collection, will be paying the full cost of disposal at the incinerator, which is officially called the Energy from Waste facility.
Infrastructure Minister David Cretney MHK said: ‘At a time of considerable pressure on budgets, the public expects government to prioritise its spending to support frontline services.’
He added: ‘The department is keen to empower local authorities by giving them more control and responsibility for their finances and services. I have every confidence that they will respond positively to this challenge by working together to cuts costs.’
The department says it cannot direct local authorities as to how they deal with the withdrawal of the waste subsidy.
But if they chose to pass the cost straight through to householders it should mean a rates increase of around £11 annually for six years for a typical three-bedroom terraced house, with an average increase of around £22 per household per year.
Local authorities have had subsidised disposal costs since the Energy from Waste facility opened in 2004.
The Manx Independent will have more on this story on Thursday morning, including reaction from local authorities.
