The works committee of Toronto city council has postponed a proposal to ban paper coffee and other such cups with plastic lids. (Dwight Friesen/CBC)

After a marathon meeting, a Toronto city council committee has decided not to ban paper drink cups with plastic lids — for now, but will push ahead with two other controversial recycling moves.

The issue of coffee and other drink cups with plastic lids has been a vexing one for city recyclers. The paper cup portion is recyclable, but not the plastic top.

Some people separate the plastic from the paper before throwing the cups away, but most don't. And when the plastic shows up in the recycling bin it causes problems. Paper recyclers say the plastic contaminates the material.

Andriano Filippelli is one of the consumers who doesn't separate the paper and plastic because "you're in a hurry, you just finish, you just throw it, and off you go back to work."

Retailers, led by coffee giant Tim Hortons, mounted a lobbying effort against the proposal.

Franchise owners, dressed in blue, joined others in the industry to pack the committee room calling on the city to scrap the plan.

"The challenge here is, it's not the packaging, It's how to deal with the packaging is the issue," said company vice-president Nick Javor.

The company says its cups and lids can be recycled together — the city just needs new machines to do it. Javor pointed out that other municipalities, like York Region, are recycling them already.

But Toronto councillors say a machine to sort the cups and lids would cost at least $3 million, which the taxpayer shouldn't bear.

"The people who make the coffee cups, the people who sell the coffee cups, the people who profit by selling the coffee cups or giving those coffee cups to us, should be responsible for the entire life cycle of that product, not taxpayers," said Coun. Glenn De Baeremaeker

The committee finally decided to postpone a decision on the coffee cup tax, deciding to give stores until April to work out a compromise.

More debate coming on plastic bags, water bottles

On another environmental issue, the works committee decided to further debate a plan requiring retailers to give consumers who use their own bags a 10-cent refund for every plastic bag saved. It will be debated before full council in December.

Stephanie Jones of the Canadian Restaurant and Foodservices Association says the proposal is nothing more than a tax that will ultimately hurt Toronto businesses.

"This is a tax on business and will come directly on [the] bottom line, making Toronto less competitive against other municipalities," she said.

The committee also decided to take the next step in its proposal to ban on the sale of water in plastic bottles at all city-run facilities — that the issue go before council.