City infrastructure director Scott Cavanagh says a glass recycling bin pick up is one way which can help to reduce recyclable materials mixing, and ending up in landfill or stockpiled at facilities.

On Friday it was revealed major recycling company SKM Services had been ordered to stop accepting waste at two of its sites amid concerns that stockpiled plastic had become a fire hazard.

"It is not currently affecting us, at this stage, " Mr Cavanagh said.

"VISY is our processor, so we want Warrnambool people to keep recycling as normal. Our council has been very strongly on pushing for changes in the recycling industry. We know the impact glass has on kerbside co-mingled collection.

"The state government need to get in and back these types of innovations that Warrnambool is looking at, to try and deal with the issue on a source level.

"We are calling on the government and (environment) minister to get behind programs and provide funding for us out of the sustainability fund, which we understand is up at $500 million again. Having to wait is really inflexible. We need to get on and work with the processors."

He said Wheelie Waste and SKM were looking into glass collection services, and it could be a viable option in the city.

"This is where we need to go," he said.

"We need to look at doing something different, because the same service just doesn't seem to be working. It's costing our community more. We want good environmental outcomes and we want them at an affordable level for community as well."

Infrastructure services manager Glenn Riddick said glass was the biggest contaminant in recycling, and it slowed down the process when it had to be removed.  

"We want to to talk to the community and ask them if it is the right thing to do," he said.

He explained new red and yellow bins would be delivered to households, and an older bin could potentially be used for glass collection. 

Chief executive officer Peter Schneider said source separation was happening all over the world. 

"It makes for a much better end product," he said. 

The Environment Protection Authority issued notices to SKM Services plants in Coolaroo and Laverton.

Environment Minister Lily D’Ambrosio said badly managed rubbish stockpiles posed an “unacceptable fire risk”.

“We are working on contingency plans with councils so there is no disruption to kerbside recycling collection – so Victorians should keep recycling as normal and do what they can to minimise waste,” she said.

The recycling sector was plunged into crisis after China stopped accepting low grade recycling material from Australia.

Low commodity prices have prompted concerns that some recycling companies may be stockpiling recycling material.

Deakin University recycling expert Trevor Thornton said stockpiling remained a problem in Victoria.

Low commodity prices meant some businesses were holding onto recycling material “until it gets a bit of value back into it”, he said.

Dr Thornton said the EPA was limited in how many sites it could inspect.

“Until something happens the EPA can only get around to so many sites,” he said.