Rumour File: Rubbish could start piling up after contract breakdown with China

Local councils are scrambling to find somewhere to dump their recycled rubbish after company Visy told contractors it would no longer accept their waste from February 9.

After sorting millions of tonnes of paper, plastic and glass, Visy ships to China where the shipments are processed into re-usable materials.

First heard on The Rumour File, and reported in The Herald Sun, Visy have now invoked “force majeure” to suspend contracts with China.

Justin Lawrence, partner with Henderson and Ball lawyers explained the situation to Ross and John.

“Effectively its where the parties’ contract arrangements are frustrated to an extent to where one party or both parties cannot perform their obligations under the terms of the contract and as a result those obligations are suspended because of that intervening factor that no one could foresee,” Justin said.

“I think you’ll find the councils will say if our recycling agencies cannot pick up your rubbish then your rubbish will just sit on the nature strip.”

Click PLAY to hear the full interview

Photo: Visy