Queenstown Lakes District Council is holding firm to a new recycling contract in Wanaka, even though locals are outraged a community run company missed out on the deal.
Wanaka Wastebusters has been recycling rubbish for nearly 10 years and has held the council contract for six.
In a tender process the council has awarded the contract for the next six years to Smart Environmental, an Auckland-based company.
Queenstown Lakes mayor Vanessa van Uden says the successful tender was about half the price of the local one and cutting costs helps to keep rates down - a priority for the council.
Wanaka Wastebusters manager Sue Coutts says the council has a responsibility to ensure local businesses can thrive and, given the uproar in the local community, it should take some time to think the decision through.
She is calling for a vote of no confidence in the council decision by the Wanaka community.
Ms van Uden says the decision not to renew their recycling contract does not mean the end of Wanaka Wastebusters.
She says the council recognises the importance of the group's activities and supports the organisation through education contracts.