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 ten years and has held the council contract for six years.
In a tender process the council has awarded the contract for the next six years to Smart Environmental, which is based in Auckland.
District mayor Vanessa van Uden says the successful tender was nearly half the price of the local one.
She says cutting costs helps to keep rates down.
Wanaka Wastebusters manager Sue Coutts says the council has a responsibility to ensure local businesses can thrive.
She is calling for a vote of no confidence in the council over the issue.