Author: Craig Lawrence

Wishing all my Papua New Guinea friends and colleagues a very happy Independence Day. PNG’s journey is a remarkable story worth celebrating on this 50th Independence Day.

Lytton Advisory’s Managing Director is in Tuvalu, assisting the Ministry of Finance with a review of the country’s public enterprises. The ADB is providing support under its Pacific governance program. Accountability, transparency, financial reporting and service delivery are also on the table. As a micronation, many of Tuvalu’s key services are delivered through public entities with business charters. The user pay model is challenging in the Pacific, where the cost of service delivery is high and in particular where the government seeks to support very small remote communities in this island nation of coral atolls.

Waste Management at the Border: Insights from Thurgoona, Albury-Wodonga

During a recent visit to Thurgoona, a rapidly growing suburb of Albury on the NSW-Victoria border, it became clear that the twin towns of Albury and Wodonga face unique challenges in managing municipal waste. Straddling two states, this border community grapples with a complex web of differing environmental regulations, landfill rehabilitation obligations, and local government oversight. These differences have significant implications for the efficiency and effectiveness of waste management systems.

How might the environmental regulations compare?

Category	NSW EPA Standards	Victorian EPA Standards
Waste Classification	Classifies waste as general, hazardous, or restricted	Classifies waste as prescribed industrial waste (PIW) or non-PIW
Landfill Capping	Requires specific geosynthetic liners and final soil cover	Uses a risk-based approach to capping design, with site-specific flexibility
Leachate Management	Mandatory leachate collection, treatment, and monitoring	Site-specific leachate management plans based on environmental risk assessments
Groundwater Monitoring	Regular monitoring required to detect leachate leakage	Risk-based approach with specific triggers for monitoring frequency
Rehabilitation Liabilities	Councils must provision for future rehabilitation costs in financial plans	Requires an environmental bond or rehabilitation fund to be established upfront
Post-Closure Management	Typically requires 30+ years of monitoring and maintenance	Post-closure obligations depend on site risk and may be shorter or longer than NSW requirements
Resource Recovery	Mandated targets for recovery of organics and recyclables	Emphasizes a circular economy approach, with landfill diversion targets
Licensing and Fees	Waste levy charged per tonne of waste disposed	Landfill levy applies, but fees differ based on region and type of waste
Compliance Reporting	Annual environmental management reports required	Annual performance statements required, with detailed environmental monitoring data

What is the impact of differingr regulations?

One of the most striking issues for Albury-Wodonga is the divergence in environmental protection standards between New South Wales (NSW) and Victoria. Each state’s Environmental Protection Authority (EPA) sets its own requirements for landfill management, waste classification, and environmental monitoring. For example, landfill rehabilitation requirements, including capping standards, leachate management, and post-closure monitoring, can differ markedly.

These discrepancies create operational inefficiencies for waste managers who serve both sides of the border. A waste facility operator in Albury may be required to meet one set of standards, while just a few kilometres away in Wodonga, an entirely different set of requirements might apply. This can lead to higher compliance costs, duplication of reporting, and less flexibility in resource allocation. Additionally, businesses operating across the border may face higher administrative burdens and legal uncertainty, particularly if materials must be transported between facilities in NSW and Victoria.

Is landfill rehabilitation a looming cost for local councils?

Landfill rehabilitation is an unavoidable reality for councils on both sides of the border. As waste disposal facilities near the end of their operational life, local governments must set aside funds to restore the sites to an environmentally safe condition. This process includes activities such as capping, revegetation, leachate treatment, and long-term environmental monitoring.

For border councils like Albury City and Wodonga City, the financial challenge is exacerbated by differences in the methods used to calculate rehabilitation liabilities. NSW regulations may require more stringent provisions than Victoria, leading to larger financial reserves for Albury’s rehabilitation efforts compared to Wodonga. This divergence can strain council budgets and reduce funds available for other essential services. If councils are not proactive in funding these obligations, future ratepayers could face significant financial burdens.

How might differences in local government regulations affect municipal waste management?

While state-level EPA standards drive many of the major differences, local government regulations add a further layer of complexity. Each council has its own policies for kerbside collection, waste levies, and resource recovery targets. In Albury, initiatives like the Food Organics and Garden Organics (FOGO) service aim to reduce organic waste going to landfill. Wodonga’s approach, however, might differ in terms of collection frequency, contamination thresholds, or service fees.

These differences can create confusion for residents and businesses operating on both sides of the border. For instance, a construction company working in both Albury and Wodonga may have to navigate different local laws on construction and demolition (C&D) waste disposal, affecting both cost and project timelines. For residents, inconsistent waste collection practices can reduce participation in recycling programs, ultimately lowering resource recovery rates.

Are there pathways to improved efficiency and collaboration?

Border towns like Albury-Wodonga present a clear case for greater harmonisation of waste management policies. Enhanced cooperation between NSW and Victorian EPAs could lead to more consistent regulatory requirements, reducing the compliance burden on operators. Similarly, local governments could work together to standardise kerbside collection systems and landfill rehabilitation strategies, promoting economies of scale.

Joint planning initiatives and intergovernmental agreements could also deliver cost savings and better environmental outcomes. By pooling resources for landfill rehabilitation or aligning contract specifications for waste collection services, both Albury and Wodonga councils could achieve greater efficiency.

With challenges come opportunities

Thurgoona’s growth is symbolic of the wider challenges facing border towns like Albury-Wodonga. As development accelerates, so too does the need for effective, efficient waste management. Differences in EPA standards, landfill rehabilitation obligations, and local government regulations create operational complexity for councils, businesses, and residents alike.

But with challenge comes opportunity. By prioritising collaboration and harmonisation, border communities can reduce costs, improve service delivery, and support a more sustainable future. Thurgoona’s continued growth underscores the importance of getting this balance right, ensuring that waste management systems are fit for purpose in a cross-border context.

#full-cost-pricing #waste-management #local-government #landfill-rehabilitation

Traffic congestion isn’t just an inconvenience; it’s also a financial burden. In Australia, traffic delays cost around $19 billion annually in lost productivity, increased vehicle operating costs, and environmental damage. Think about it—every minute sitting in traffic wastes fuel and time that could be spent working or enjoying life. Economists consider this an example of “externalities,” where the cost of congestion is shared by society, not just the drivers. Some also suggest they are ‘contagious’:
https://theconversation.com/traffic-jams-are-contagious-understanding-how-they-spread-can-help-make-them-less-common-135551
Could investing in public transport or smart traffic systems save the day?  Would congestion pricing be a better solution?
#Economics #TrafficCongestion #UrbanPlanning #PublicTransport

_{Sir Robert Giffen knew a thing or two about consumer behaviour in times past.}

Here’s another fun fact about economics: The concept of “Giffen goods” is a rare and counterintuitive phenomenon where an increase in the price of a good leads to an increase in its demand. This seemingly paradoxical situation can occur with inferior goods, which are products that people buy more of when their income decreases. The classic example is that of a staple food, like bread or rice, in a low-income economy. If the price of the staple food rises, people might not be able to afford more expensive substitutes, and thus, they end up buying even more of the staple food, despite its higher price. This effect challenges the basic law of demand in traditional microeconomic theory.

#economics #giffen-good #consumer-paradox
Image credit: Wikipedia, Robert Giffen (engraved portrait).png, CC

Here’s another fun fact about economics: The “Lipstick Effect” is a phenomenon observed during economic downturns where consumers tend to buy more small luxury items, like expensive lipstick, instead of more costly luxuries like jewellery or vacations. This behaviour is thought to occur because people still want to treat themselves despite financial constraints, and smaller luxury items offer an affordable way to experience a sense of indulgence. This concept illustrates how consumer behaviour can shift in response to economic conditions, providing valuable insights for businesses and marketers. I’m wondering if there are any other examples of this. Keen to read your comments.

#economics #lipstick-effect
Image attribution: freepik

Here’s another fun fact about economics: “Tourism Leakage” is a term that describes the phenomenon where a significant portion of the revenue generated from tourism in a region does not remain in the local economy but instead “leaks” out to foreign investors, international companies, and overseas suppliers. In many Pacific Island countries, tourism is a major source of income, but a large share of the profits can end up abroad, particularly when hotels, airlines, and tour operators are foreign-owned. This reduces the positive economic impact of tourism on the local communities and highlights the importance of developing local tourism businesses to retain more benefits within the region.

#Pacific #tourism-leakage #economics
Image credit: Dennis Tolkach