To: City of Nanaimo Mayor Bill McKay and Council
RE: Request that the City not provide a government subsidy to the Nanaimo Recycling Exchange, which competes with private recycling depots.
The Vancouver Island Recycling and Waste Industry Coalition (VIRWIC) wants local government to meet its recycling and solid waste objectives, the public to receive high quality service at a reasonable cost and industry to have a stable investment environment.
We request that City of Nanaimo stop subsidizing the Nanaimo Recycling Exchange, which is in competition with the private recycling depots that pay taxes and hire employees locally.
Our rationale is as follows:
1. The City of Nanaimo, should not be in competition with the private sector or provide subsidies to the Nanaimo Recycling Exchange to compete with the private sector.
2. If the City of Nanaimo would like to provide financial resources toward recycling, then the city should work with the recycling industry to develop fair, market based, policies that support the City’s objectives.
3. Open and fair competition in the sector will create value for residents while keeping costs low. Industry investment in infrastructure can only happen when government sends a clear signal that it will not negatively influence the open competitive market by providing subsidies to select groups or by building competing infrastructure.