Wingecarribee's new waste disposal centre is struggling to pay for itself, with yearly gate income tipped to fall 40 per cent below original estimates.

The Moss Vale Resource Recovery Centre, which officially opened last July, will lose $500,000 this financial year unless Council makes urgent budget adjustments.

It has already been mooted the centre's hours of operation will be dramatically cut back.

A waste committee meeting on February 18 was told takings have been seriously affected because of a huge decline in waste volume.

It was revealed at the meeting that builders and contractors are dumping their waste at cheaper facilities.

The committee report, to be tabled at tonight's council meeting, stated there has been a 46 per cent drop in commercial waste and 47 per cent drop in mixed building materials.

However, the report states that this reduction in volume is in line with Council's waste management strategy.

The overall waste volume is down by only four per cent due to the increase in green waste - which generates scant income.

"Customers have reacted to increased gate fees, particularly in the commercial waste areas and are choosing to sort their wastes of take advantage of cheaper disposal options," the report said.

"Green waste business continues to grow, there being little resistance to the $5 fee."

Although the RRC has already cut back on first year expenditure (to the tune of $243,000), the committee has recommended opening hours be slashed.

It is proposed to open the RRC from 9am-4pm weekdays and 10am-3pm weekends.

The centre at present opens from 8am-4.30pm seven days a week.

If approved by councillors, the adjustments will save a projected $522,000 in labour and operating costs.

The shire's tipping fees rose on average by 12 per cent when the RRC was commissioned.

Mixed building waste costs $103 a tonne to dispose or $68 per cubic metre.

It costs $38 to a cubic metre of bricks at the RRC compared to $22 at the Wollondilly tip near Bargo.