Officials will not give in to pressure and offer direct subsidies to waste paper recyclers.
Admitting the 'problems' had become worse since Concordia Paper Limited closed last month, Assistant Secretary for Planning, Environment and Lands Steve Barclay said the Government would try to assist in other ways.
The last major recycler, Future Safe, yesterday admitted its move to stop collecting waste paper from tomorrow was a bid to secure government assistance.
'We want to press the Government to admit there is a crisis and to take immediate action to tackle it,' mill manager Eric Choi Tze-hung said.
'The Government has not until now admitted its wrong environmental protection policy has placed the paper recycling industry in crisis,' he said.
'It has realised that too much waste paper will overload the landfills and treatment costs will become extremely high, but it is doing nothing about this.' Eleven companies had expressed interest in clearing the mounting backlog of paper since the Concordia closure, Mr Barclay said.