That is the message from West Tamar council mayor and Local Government Association of Tasmania president Christina Holmdahl.

"The Northern and North-West councils are not affected by the concerns surrounding the councils in the South," Cr Holmdahl said Saturday. "We are not impacted by it."

SKM was declared insolvent by the Supreme Court of Victoria on August 2. The company is one of the three major waste contractors in that state, serving dozens of councils.

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In Tasmania's South, recycling services are contracted to SKM Derwent Park for the sorting of glass, cardboard, steel and plastics. Municipalities in the North and North-West use different providers.

Responding to concerns raised by the Tasmanian Conservation Trust about the future of recycling services in the south, Cr Holmdahl said the Derwent Park site had not been "materially affected" by the Victorian issues.

She added that plastics were still being baled and stored while new arrangements were being made for their recycling. But no Tasmanian councils were burying recyclable materials in landfill.

"Should the situation change, like their Victorian counterparts, Tasmania's councils will provide advice to their communities," Cr Holmdahl said.

The TCT was contacted for comment. The situation also follows a plastic waste export ban flagged by Prime Minister Scott Morrison earlier this month.

On Saturday, Labor environment spokesperson Alison Standen said the government had been too slow to act but suggested "scaremongering" could cause Tasmanians to stop recycling altogether.

"Peter Gutwein must explain whether he has now met with SKM and what he is doing to avert the collapse of recycling in Southern Tasmania," she said.

"There is only so long that councils can implement alternative arrangements so the government needs to act, and they need to act today."

A government spokesperson said Environment Minister Peter Gutwein met with LGAT last week and was in "close contact" with local government on the matter.

"We are aware that some southern Councils are, prudently, preparing contingencies," they said.

"Tasmania is collaborating at a national level in response to waste and recycling issues, and national targets have been set to reduce both waste production and waste disposal."

The government released a draft Waste Action Plan for public consultation in late June, which set out a number of waste reduction and resource recovery targets. Submissions remain open until October 7.

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