SOMBA K'E/YELLOWKNIFE - A paper shredding company in Yellowknife says the city is unfairly ordering it to retrieve waste paper at the dump after paying dumping fees to dispose of it.

At the June 15 Priorities, Polices and Budget committee meeting Eric Buchstein, a representative of Document Security Systems, told council the company is being asked to retrieve any paper it sends to the landfill after it has been bailed, and after they have paid a $30-a-tonne commercial fee to dispose of it there.

"We've been asked for pay on the scale and asked to take it back after," said Buchstein.

"We pay the $30 a tonne and kiss it goodbye, but we have to retrieve it."

The company collects paper material from businesses in town and shreds it for them, eliminating the possibility of any sensitive information being exploited.

But according to Mayor Gord Van Tighem, the original agreement was for the company to haul its paper to the dump where it is bailed and stored until there was enough to ship it down south for recycling. That changed when the price of paper dropped and the company stopped picking it up voluntarily.

"The city was bailing it and holding it," said Van Tighem.

Buchstein referenced the Solid Waste Management bylaw, stating the paper it drops off shouldn't be the company's problem once it pays the fee.

Dennis Kefalas, director of public works, said the company should be responsible for transporting the waste south because it is providing a service and clients should be absorbing the cost of transportation.

"The company doesn't make the waste," said Kefalas. "The customer should be paying for it. (The company) should be responsible to ship it down south."

Buchstein said his company is storing a lot of its bundles at its make-shift bailing centre here in town, but it isn't able to deal with the amount of paper it collects and requires use of the city facility.

Coun. Paul Falvo argued if Document Security Systems didn't exist, the city would be dealing with nearly 500,000 pounds of waste and incurring the cost. Coun. David Wind agreed.

"They divert waste from the normal waste stream," said Wind. "They help reduce the amount of waste. It should be in the interest of the city to find a solution so this diversion continues."

City administrator Max Hall said the city would review charges to anyone who does significant recycling and make sure they are being charged fairly.