China’s decision this week to ban certain types of recycling material has surprised councils, which now face the prospect of increased charges from recycling companies cater for new arrangements.

The Municipal Association of Victoria warned extra costs being discussed by recyclers would translate to a rate increase for affected rural councils of between 1.1 per cent and 2.5 per cent, on top of the annual 2.5 per cent cap.

Chief executive Rob Spence said he had been meeting with councils, recyclers, collectors, the Environment Minister and Department of Environment, Land, Water and Planning to help broker a resolution.

“While rural councils have been the most directly affected to date, it has become clear that the impacts will be statewide, with significant cost implications likely for all councils and ratepayers,” he said.

“A number of rural councils are already having to consider costly short-term arrangements in order for their recycling services to continue beyond this week.

“With Victoria’s three recycling companies positioning for a statewide price adjustment, we are seeking an outcome that would enable recycling services to continue without a significant cost of living impact.”

The MAV has called on the Victorian government to give financial assistance to councils until June 30.

Wangaratta Council infrastructure services director Alan Clark said he had not been expecting any changes to the arrangement with JJ Richards, until the council was contacted yesterday.

“We received a letter advising us that our prices are going to go up as of tomorrow (Saturday, February 17). It’s a bigger jump than we expected, we need time to analyse it,” he said. “It’s simply more substantial than we thought, we’ll have to work through that with them.”

The council had not announced if the recycling price rise would lead to higher rates.

The draft Waste Management Strategy for 2018-2023 is due to go before councillors at Tuesday’s meeting.