SENDING recycling to landfill is costing Moyne Shire Council thousands of dollars a fortnight, but a new state government bailout could help reduce those costs.
A shutdown last month of recycling processor SKM left 33 councils in limbo and forced many including Moyne to send recycling to landfill.
About 100 tonnes of the shire's recycling has gone to the tip, at a cost to the council of $8500.
A council spokesman said it had absorbed the cost of the collapse without increasing waste service charges for ratepayers.
Victorian Environment Minister Lily D'Ambrosio has announced a $6.6 million package to alleviate financial pressure for the 33 affected councils, and flagged an overhaul that could involve households receiving extra bins.
"This short-term financial relief supports councils immediately, while all levels of government work together on a longer-term solution that must include an overhaul of kerbside recycling," Ms D'Ambroiso said.
"We believe this financial assistance to councils will help them transition to meeting the real costs of recycling after decades of a failed business model from SKM."
The funding is also conditional on councils seeking alternative options to landfill and working towards a ban on exporting recyclable waste.
Moyne's spokesman said the council welcomed the assistance, particularly if it helped roll out additional kerbside bins for glass separation. The council has planned to trial glass separation in Koroit in October.
"The options currently available to council require glass to be excluded from the remaining recycling materials," the spokesman said.
"Council is currently considering how this may be achieved in both the immediate and longer-term."
Glenelg Shire is also affected and the council's recycling contractor has stockpiled hundreds of tonnes of material, which has not come at an additional cost.
But the material can only be stockpiled for about a fortnight longer.
"This short term financial support package will allow council to continue to manage recycling on a business as usual basis," a Glenelg Shire spokeswoman said.
"However, there is still further work to be done to ensure a more long-term sustainable solution can be achieved to rebuild the domestic recycling sector."
Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.