TORONTO - Ontario's governing Liberals are stepping in to change a controversial pricing plan created by Stewardship Ontario for the recycling of hazardous waste.
The government released a new regulation today that will ensure producers pay the actual cost of waste disposal, rather than a projected cost estimated by Stewardship Ontario.
It would change the payment system from one based on per-unit of packaged material to a lump-sum system.
Environment Minister Jim Bradley says the change will help fix deficits that occur when the revenues generated by producer fees don't cover the actual costs of recycling.
The minister is also asking Waste Diversion Ontario to review Stewardship Ontario's budget and expenditures.
The industry-funded organization came under fire in 2010 when, with little warning, eco fees were slapped on thousands of new household items, such as fire extinguishers and laundry detergent.
The fees sparked public outrage, prompting the provincial government to shelve them permanently.
Bradley said he's concerned about "cross-subsidization" under the current payment plan, where one group is effectively subsidizing another group's recycling costs.
The new regulation will help alleviate "significant complaints" about the current payment system, he said.
The minister said he's also written a letter to Waste Diversion Ontario, an independent organization which oversees recycling programs, to direct other stewardship organizations to develop a similar fee-setting structure.
"I want them to review the development and implementation of the financial incentives that are paid to the service providers by stewardship organizations," he told The Canadian Press.
