Tensions mount as Tesco takes over recycling banks

Retail giant Tesco intends to install a single private contractor to manage recycling banks at all of its stores in a move which has caused concerns among councils.

But, the contractor concerned and the retailer have highlighted the benefits the move will bring, as well as savings to local authorities.

In a letter seen by letsrecycle.com, Tesco has started to inform local authorities that the management of site-located recycling services will be undertaken by contractor DS Smith Recycling, formerly known as Severnside Recycling, and not the host council, as has usually been the case.

Recipients of the letter have been asked to remove council-owned recycling banks with the exception of textile banks – from the retailers sites and these will then be replaced by DS Smith Recycling containers on the same day.

At present, local authorities collect recyclable material from banks at Tescos sites and are able to sell it, as well as being able to include this material in its household waste and recycling figures.

The change in service provider is part of a national plan by the retailer to bring management of all community recycling areas under one contract, which Tesco believes will lead to consistency as well as efficiency savings due to the large scale of the operation.

Responding to the letter, one council officer, who wished to remain anonymous, told letsrecycle.com: For years we have had the material and now, it would appear, we are going to have a lot less to go round. I think I am not alone when I say there is grave concern about this.

Recycling credit

Further concern has been raised by the issue of the mention of recycling credits in the Tesco letter. Waste collection authorities have the potential, under the Environment Protection Act 1990, to pay third parties, such as businesses, organisation or charities, a recycling credit in exchange for collecting household waste on its behalf.

In the letter, Tesco said, as it will continue to collate tonnage information for material collected at the site, it asks if any payment for the recycling credit for the paper [collected] could be paid/taken into consideration.

A well-placed local authority source said this had caused particular anger among recipients of the letter. He said: They have effectively said, we will take the material for ourselves and then give you the figures for the material we collected if you pay us. So it appears that they are taking revenue and then asking for additional revenue for the data.

Tesco

However, according to Tesco councils will make savings under its proposals. The letter states that moving the service away from council involvement to Severnside would reduce council costs, as the recycling firm would take over cost and maintenance of banks.

And, the letter does state that, as part of the change in service, it has extended its vouchers for schools programme to include the community recycling areas, which will see a donation made to local schools and clubs based on the tonnage of material collected at sites.

In a statement released to letsrecycle.com a Tesco spokesman said: “Following a strategic review of our customer recycling offer, we have decided that we will partner with DS Smith, our recycling contractor, to ensure that customers and local residents continue to benefit from services offered at Tesco.”

DS Smith Recycling explained to letsrecycle.com that it is in the process of rolling out around 500 Community Recycling Centres.

A company spokesman said: “Operating these new improved, customer friendly, Community Recycling Centres, will provide DS Smith with access to a new stream of post consumer packaging, whilst allowing Tesco to offer its shoppers additional recycling facilities to compliment their local kerbside service.”

He noted: “The attractive looking, easy to access and use Community Recycling centre” would help increase recycling rates of post consumer packaging.

“Although good facilities are provided nationally through civic amenity sites, front-of-store recycling initiatives allow consumers to deal with their recycling at the same time as doing their shopping – reducing the overall miles travelled to access recycling centres.

“We are proud to work with our customer, Tesco, on this initiative as they have shown a dedication to the environment, and their customers, by investing the same attention to detail into their recycling offering as they do their overall shopping experience.”

Meetings

The Local Authority Recycling Advisory Committee (LARAC) said it is keen to discuss Tescos move and has also pledged to meet with the British Retail Consortium (BRC) with a view to drawing up a code of practice for on-going work between retailers and local authorities.

Andrew Craig, principal policy officer at LARAC said that, while the organisation didnt want to negotiate through the press, it had concerns about the developments. He told letsrecycle.com: In one sense these letters are disappointing but in another we are in negotiations with the BRC about future working.

Sainsburys

Tensions have risen between retailers and local authorities before, with Cornwall council and Sainsburys clashing over the removal of recycling banks from the retailers sites in the region at the start of March 2011 (see letsrecycle.com story).