Date: September 23, 2008
New York City to Raise Maximum Waste Hauling Rate
NSWMA Pleased BIC Recognizes Rate Cap Reform is Needed
Washington, DC – For the first time since 1997—after years of being forced to absorb significant increases in the costs of doing business—New York City waste haulers are getting an increase in the maximum waste hauling rate. The New York City Business Integrity Commission (BIC) proposed today to increase the maximum rate that waste haulers may charge New York City commercial establishments for garbage removal. The BIC described this increase as "an effort to make sure the private waste hauling industry remains competitive and economically viable."
Dominick Incantalupo, of Chelsea Sanitation Service, Inc., and the Chair of the New York City Chapter of the National Solid Wastes Management Association (NSWMA), applauded the move and stated, "This rate cap increase is long overdue."
The BIC's proposed change to the rate cap is meant to comply with its statutory obligation to ensure that waste haulers in New York City can earn a reasonable rate of return and that all commercial establishments continue to receive high-quality, reasonably-priced, full-service waste removal.
The BIC's study of the existing rate cap structure has concluded that the 200 companies comprising the city's carting industry are very competitive. According to the BIC, the majority of businesses in New York City pay below the rate cap, and those businesses that dispose of recyclables and lighter waste generally pay significantly less than the rate cap. The BIC rate cap is unique; no other major city in the United States has a similar rate structure.
David Biderman, a representative from NSWMA, stated it would be better to phase out the rate cap and allow the market to set the price for these services. "If phasing out the rate cap isn't possible, we believe these rules must include a mechanism to ensure regular and routine rate cap review so we don't have to wait 11 years for another adjustment, which would be fair for carters and customers alike."
Biderman noted the BIC's proposal doesn't even match the rate of inflation during the last decade. Especially in recent years, New York City carters have absorbed sharp cost increases. For example, the cost of diesel fuel has nearly doubled during the last year. Biderman added, "We urge the BIC to keep an open mind during the public hearing process, so we can arrive at a fair and equitable rate cap."
About the NSWMA
The National Solid Wastes Management Association (NSWMA) – a sub-association of the Environmental Industry Associations – represents for-profit companies in North America that provide solid, hazardous and medical waste collection, recycling and disposal services, and companies that provide professional and consulting services to the waste services industry. NSWMA members conduct business in all 50 states. For more information, visit www.nswma.org.
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Environmental Industry Associations
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