REDcycle has left a $5 million debt and a stockpile of thousands of tonnes of unrecycled soft plastics across the state.
The state’s Environment Protection Agency has asked Woolworths and Coles to move the plastics to sites that reduce the risk of fire.
Coles and Woolworths said they were working with the EPA and logistics providers to move the material to more appropriate facilities until it can be dealt with.
Total Environment Centre’s Jeff Angel said there needed to be a comprehensive new collection and reprocessing scheme.
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“We are not doing enough,” Angel said.
“We need much faster action by the supermarkets and by the packaging industry.
“The real problem is the lack of reprocessing facilities but the packaging industry knew about this in 2018 and did nothing.”