A CONTRACT to reduce carbon emissions by mulching green waste could be costing Mount Isa ratepayers millions of dollars. The Mount Isa City Council made an agreement with a local contractor to mulch green waste to limit the effect of the carbon tax, which became effective in July, 2012.
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But the contract conditions remained despite the abolition of the tax on July 17.
Mount Isa Mayor Tony McGrady said councillors discussed negotiating out of the agreement with a local contractor in the closed business section of a recent full council meeting.
Cr McGrady said the contractor bought an expensive piece of machinery to fulfil the requirement, which the council’s monthly fee covered.
The green waste could then be recycled and used for Mount Isa’s parks and gardens.
He would not disclose the precise amount the contractor was being paid but said the council was looking at the possibility of saving “many millions of dollars”.
An option the council was considering to get out of the contract was buying equipment that the contractor had bought for the job, Cr McGrady said.
But the contract conditions remained despite the abolition of the tax on July 17.
Mount Isa Mayor Tony McGrady said councillors discussed negotiating out of the agreement with a local contractor in the closed business section of a recent full council meeting.
Cr McGrady said the contractor bought an expensive piece of machinery to fulfil the requirement, which the council’s monthly fee covered.
The green waste could then be recycled and used for Mount Isa’s parks and gardens.
He would not disclose the precise amount the contractor was being paid but said the council was looking at the possibility of saving “many millions of dollars”.
An option the council was considering to get out of the contract was buying equipment that the contractor had bought for the job, Cr McGrady said.
