In a shock announcement, social enterprise Wastebusters revealed last night it is closing its Alexandra operation.
The Boundary Rd-based reuse shop and recycling services will cease to operate on June 30, stopping all of its recycling services in Alexandra, Cromwell and surrounding rural communities, including to business customers.
General manager Tony Pfeiffer said the organisation's Wānaka operation had subsidised the Alexandra site since it took it on from Central Otago Wastebusters in 2015, and with the lease due for renewal it was time to face up to "commercial realities".
The Central Otago enterprise was in financial difficulty when it was handed over eight years ago.
"We’ve had to make the hard call that it’s not financially viable for us to continue to operate on the Alexandra site," Mr Pfeiffer said.
"As a social enterprise, we need to ensure that we are financially viable for our people, our place and our impact, so we can continue to work for zero waste into the future. It wouldn’t be responsible of us to commit to operating a loss-making site into the future."
He acknowledged the hard work and impact created by the founders of Central Otago Wastebusters, and all the many staff who had worked for both organisations over the last 22 years.
"Wastebusters has appreciated all the support from the community over the last eight years, and the positive relationship that we have developed with the Central Otago District Council," he said.
"Over the last eight years, we have been honoured to have diverted waste from landfill, provided jobs within the Alexandra community, ensured real recycling for businesses and residents, and delivered zero waste education and community engagement.
"While withdrawing from the Alexandra Boundary Rd site is a very hard decision to make, we are hopeful that we can now pass on the reuse and recycling torch to another social enterprise or business that can keep offering these services to the community."
Looking after the Alexandra Wastebusters staff was the top priority, Mr Pfeiffer said.
"Wastebusters will be prioritising the welfare of our Alexandra team and working hard to support them to transition into future employment."
Plans will also be made for the Wastebusters cats Buster and Sid, who are "well-loved icons" in the Alexandra community.
Wastebusters is continuing to negotiate with Central Otago District Council (CODC) to see if there are any ways that Wastebusters can continue providing waste reduction impact.
It will hand over the community recycling drop-off at Boundary Rd to the district council on June 30.
"We fully appreciate the loyal support that our business customers have shown to Wastebusters through these tough years, and we know this will come as an unwelcome shock to many of them," Mr Pfeiffer said.
"Volatile commodity markets and intense competition in recycling markets has meant that we are one of the last social enterprises in the country to be doing recycling.
"With the Government delaying plans to bring in a container deposit scheme, we just can’t hang on any longer in Alexandra."
Despite that, the future of the social enterprise was secure and it’s services will continue as normal in Wānaka, he said.
CODC infrastructure manager Quinton Penniall said it was "sad" to see a valued community service close down and council was looking at opportunities to continue Wastebusters’ involvement in the community, providing education and waste minimisation initiatives.
"It's always sad to see a valued community service like Wastebusters Alexandra reuse shop close down.
"We know how much the shop and Wastebusters have meant to Central Otago over the years, and we understand the difficult decision that the team has had to make," he said.
CODC was also interested in talking to community groups who might want to re-establish a reuse shop at the Boundary Rd site.
