A review of Shropshire councils 27-year contract with Veolia Environmental Services is underway, as part of the authoritys work to restructure its business strategy between now and 2017.
The review will look at ways to increase recycling across Shropshire at a reduced cost to the council, while analysing its contractual arrangements with Veolia which was awarded the PFI deal to manage the countys household waste services in 2007.
The draft council business plan and financial strategy, which has been noted by the cabinet, refers to the review as a new approach and reimagining of solutions that would better meet customer demand at reduced costs.
It also aims to encourage more recycling where this reduces costs to the council and delivers environmental benefits, despite the council ruling out alternative methods of kerbside cardboard collections last year following a withdrawal of the service in November 2011 (see letsrecycle.com story).
The review follows revelations that the value of the councils contract with Veolia has risen to almost 28 million in 2013/14. This represents an increase of more than 700,000 on 2012/2013.
The contract with Veolia was signed by the former Shropshire Waste Partnership, chaired by Joyce Barrow, who is the wife of current council leader Keith Barrow. Local paper the Shropshire Star reported that Cllr Barrow said to have referred to the terms of the deal as a nightmare at a meeting in September last year.
Councillor Steve Charmley, cabinet member responsible for waste management, told letsrecycle.com: As outlined in the Shropshire Council business plan, we will review all of our current contractual arrangements with partners including the waste management contract with Veolia. Work to review this contract began in December.”
Incinerator
While Veolia declined to comment on the review, it confirmed work on its 95,000 tonne-a-year capacity waste incinerator at Battlefield in Shrewsbury is going to plan, and should be operational by the end of 2015.
In January last year, Veolia won an appeal to build its 60 million EfW plant, which had been unanimously refused planning permission by the councils Strategic Planning Committee in September 2010 despite its inclusion in the long-term contract (see letsrecycle.com story).
A clause in the contract led to the council incurring 90% of Veolias appeal costs, which amounted to more than 700,000.
Register for free to comment