Questions are being raised about a $640,000 grant to make polystyrene waffle pods after the same material was banned under the Plastic Reduction and Circular Economy Act 2021.
In September, the government provided the funding to a Sydney-based company, Styrofoam Industries, to set up a new waffle pod manufacturing operation in Queanbeyan.
The money was provided under the Regional Job Creation Fund, and the state government said it would help bring 32 jobs to the region.
Waffle pods are polystyrene blocks used in the construction industry as void fillers in slabs to lower building costs by reducing the volume of concrete required.
Grant a 'mockery'
Greens MP Cate Faehrmann said the grant made a "mockery" of the government's ban on single-use plastics.
"It says it introduced the ban in response to concern from the community about the impact that single-use plastics were having on the environment," she said.
"Yet it is providing targeted grants for the increased production of polystyrene to be scattered across building sites."
In 2021, the state government announced its intention to reduce waste generation from harmful plastics including food service items from Expanded Polystyrene (EPS).
The ban came into effect in November.
Ms Faehrmann said the government could not claim to be genuine about reducing plastic waste when it was handing out grants to companies to produce waffle pods.
"Waffle pods don't break down. They break apart into smaller and smaller pieces that end up in our playgrounds, bushland, and waterways," she said.
"They pose a huge risk to wildlife including fish, turtles, and birds."
Industry not prepared for transition
Tony Milone from Cuplolex Australia said, structurally, waffle pods were a good system, but concerns might arise when homes are demolished in the future.
"The mess will be unbelievable, and it will all go into landfill," he said.
"But if they banned waffle pods tomorrow, the industry could not cope, the situation needs more forward thinking.
"By setting up more waffle pod plants you are making the problem bigger."
His company produces a similar void former made from recycled plastic, mostly car battery cases.
"There are probably two or three products that are using recycled plastics in the same space and we're all replacing waffle pods," he said.
Cate Faehrmann said there were viable alternatives that produced significantly less waste.
"It makes much more sense for the government to provide grants to bring those costs down and the product to market than to subsidise a cheap and nasty product," she said.
"I urge the government to rethink this grant and instead provide funding to companies that are working on recycled and compostable products."
Waffle pods not banned
In a statement, Deputy Premier and Minister for Regional NSW Paul Toole said the Regional Job Creation Fund supported projects that supported regional prosperity.
"Styrofoam Industries Pty Ltd met the robust process and due diligence checks of the Regional Job Creation Funds assessment process undertaken by the Department of Regional NSW," he said.
"Subsequently, the awarding of this grant has allowed a Sydney-based business to relocate to Queanbeyan and create more than 30 jobs in regional NSW."
The NSW Environment Protection Authority (EPA) said the use of waffle pods for construction was not banned under the NSW single-use plastics ban.
It said the government is committed to working with industry to phase out certain problematic plastics.
"In 2023, the EPA will commence a review of a range of other plastic items that may be subject to a future phase-out or other regulatory intervention," a spokeperson said.
"Waffle pods have some useful properties, such as reducing energy consumption and soil disturbance, but industry must manage these materials properly to avoid adverse environmental impacts.
"National coordination is underway for the management of expanded polystyrene more broadly via the National Plastics Plan, however, this does not currently include expanded polystyrene used in construction."
The peak organisation representing manufacturers of expanded polystyrene said waffle pods were 100 per cent recyclable.
"EPS waffle pods are not only fully recyclable but help reduce CO2 emissions and mean more affordable housing," Expanded Polystyrene Australia executive director Becher Townshend said.
Styrofoam Industries has been contacted for comment.