Charges laid over Vic recycling plant fire

A firm that collects about half of Victoria's kerbside recycling has been charged over a 2017 fire at its plant which burned for more than a week.

SKM Services Pty Ltd and its director have been charged under the Environment Protection Act following the blaze at the Coolaroo site in Melbourne's north.

"The fire took several days to bring under control and resulted in a significant pollution event which Environment Protection Authority Victoria alleges had the potential to be harmful to humans and the environment," EPA chief executive Cathy Wilkinson said in a statement on Friday.

In February, the EPA shut down three plants operated by SKM, amid fears stockpiles of recyclables posed a fire hazard.

The move has left the state's recycling sector in limbo, with some councils admitting they had no choice but to send the items to landfill.

Port Phillip Mayor Dick Gross said his council has sent 584 tonnes of recyclables to landfill since mid-February, costing about $70,000.

"This recycling crisis has underlined how vulnerable the recycling market is and the need for a coordinated, long-term approach to tackling the unsustainable amounts of waste being generated in Australia," he said in a statement on Friday.

The Municipal Association of Victoria wants the state government to top up the coffers of councils impacted by the SKM closures to cover the unbudgeted costs.

State parliament on Wednesday agreed the situation would be the subject of a parliamentary inquiry.