Following a unilateral decision by WasteServ to withhold payments due to GreenPak Coop for delivery of seperated waste to its recycling facilities, GreenPak has been left with no option but to inform waste collectors that payments due to them may now also be delayed.
GreenPak provides a nationwide collection service for separated waste on the basis of a contract which has been in place since 2012. This contract sets the rates which Wasteserv pays GreenPak Coop for waste delivered to Wasteserv. In turn, Wasteserv treats and exports this material to overseas recyclers.
WasteServ’s decision to unilaterally stop honouring this contract has led to many months of discussions with the Government. These discussions have so far not produced any progress. As a result, GreenPak, which relies on these fees, as well as contributions from businesses in-line with their producer responsibility requirements, to cover the significant costs of waste collection, is now facing disruption to its cash flow.
