Second JR application launched against Defra

The application is the second to be launched against the government this week, with North Yorkshire council applying on Monday (May 20) for a Judicial Review of Defras cancellation of 65 million in funding credits for a 25-year waste and recycling contract with AmeyCespa (see letsrecycle.com story), which included the development of a 1.4 billion energy-from-waste (EfW) incinerator.

Bradford council leader David Green said Defras surprise decision to withdraw funding for the Bowling Back Lane plant came without consultation or prior notice and was detrimental to the local economy and the environment. He said there was now no long term solution for the treatment of the councils waste.

He added that Bradford council would probably have to write off around 5 million which it had already spent on the project. Government funding was worth more than 120 million over the lifetime of the 25-year contract, without which the council says the project is financially unviable.

The Pennine Resource Recovery consortium of FCC Environment and Skanska had been announced as the preferred bidder for a contract to develop the Bradford EfW plant and was due to sign the contract in summer 2013.

However, the Department for the Environment, Food and Rural Affairs (Defra) withdrew waste infrastructure credit funding for the projects in Bradford, North Yorkshire and another project in Merseyside in February 2013 (see letsrecycle.com story).

The Merseyside Recycling and Waste Authority (MRWA) has decided against launching a Judicial Review application as it said it bids for the EfW contract made the project affordable without the Defra credits. SITA UK was named as the preferred bidder for the contract in April (see letsrecycle.com story).

Infrastructure

A Defra spokeswoman told letsrecycle.com today that the Judicial Review applications were a matter for the courts. However, she stressed that the projects were no longer needed to meet the governments 2020 landfill targets. She added that whether the projects still went ahead without Defra funding was a decision for the local authorities involved.

She said: We are investing 3.6 billion in 29 waste infrastructure projects. This will reduce the amount of waste sent to landfill, promote recycling and stimulate economic growth. We now expect to have sufficient infrastructure in England to enable the UK to meet the EU target of reducing waste sent to landfill. Consequently the decision has been taken not to fund Bradford and Calderdale and the other two remaining projects.

This does not necessarily mean the three projects will stop. That will be a decision for the local authorities concerned. We will continue to provide commercial and technical advice to those projects that continue with their procurement process.

Bowling Back Lane

The Pennine Resource Recovery consortium was originally granted permission to build the Bowling Back Lane plant in Bradford in November 2012 (see letsrecycle.com story), which was expected to process around 193,000 tonnes of waste per year and provide enough electricity for 20,000 homes.

David Green, leader of Bradford council, said Bradford and Calderdale councils had worked hard to reach the procurement stage for the project before Defra withdrew the funding, adding that the plant would have boosted recycling rates, created energy and created jobs after coming into operation in 2015/2016.

He commented: We think Defras decision is very detrimental to Bradford and Calderdale, not only to the local economy but also to the environment, as well as leaving both councils with the major problem of how to get rid of our waste in the future.

If Defra does not change its stance, we will probably have to write off all the money Bradford Council has already spent, about 5m, including the enabling and utility works on site. Also the withdrawal of the waste PFI credits means we do not now have the long-term solution of the waste treatment plant in place to deal with increasing future landfill costs, including landfill tax, when our current interim contract runs out. This is why we feel we have no choice but to challenge Defras decision legally.

Tim Swift, leader of Calderdale council, said: We feel that Defras decision has left us with no option but to apply for a judicial review. The investment in a new waste treatment plant should have led to major savings for council tax payers in both local authorities, yet instead we are now left with major costs and the need to find an alternative solution for our waste.

In July 2011, Cheshires two unitary authorities Cheshire Waste and Chester council and Cheshire East council failed in their Judicial Review against Defras decision to withdraw 100 million of PFI support for a mechanical biological treatment (MBT) facility near Northwich (see letsrecycle.com story).