Council estimates the centre has lost $200,000 to date, which they believed would continue to increase.

Mayor Duncan Gair, who chairs the Resource Recovery Centre Advisory Board, said a number of factors had contributed to the losses.

Councillor Gair said those factors have included a 21.5 per cent increase in the state government landfill levy, a fall in builder’s waste coming to the centre and a lack of buyers for products such as mulch.

“One of our biggest challenges is to sell the products we produce - we are seeking markets to do that,” he said.

Clr Gair said the advisory board and the new general manager would investigate a number of strategies to reduce costs.

“We have already cut back operations of the vertical composter unit,” he said.

“The board will be seriously looking at all means of reducing loss.”

The advisory board and new general manager Jason Gordon will work on strategies to put the centre in a position to return to profitability by the end of the financial year.