Spelman stalls Norfolk PFI over level of opposition

The row between the council and Mrs Spelman comes in the wake of controversy over approval by the authority of plans for an energy-from-waste plant to be built by a Cory-Wheelabrator consortium in Kings Lynn.

Mrs Spelman has decided to withdraw the allocation of credits for the EfW plant because she does not accept Norfolks view that there is a broad consensus for its waste management strategy because of opposition which she has heard about over the project. Now, she is giving the county extra time to show there is a consensus.

Credits

The secretary of state wrote to Norfolk leader Derrick Murphy on 7 November 2011, and told Cllr Murphy that she was not in a position to confirm the provision of the credits. (Note: PFI credits are used to fund infrastructure projects they have recently been renamed Waste Infrastructure Credits or WI Credits).

Mrs Spelman referred back to a letter from the county sent in June this year.

She wrote: In your letter of 10 June 2011 you advised me that you consider that the broad consensus for your waste management strategy remains and that your proposed solution reflects the strategy, despite the opposition that the project faces. However on the basis of the evidence I have seen to date, I am not satisfied that the relevant criterion has not yet been met. I have reached this view for the following reasons:

• I continue to be concerned by the large volume of objections to the proposal;
• I understand that Kings Lynn and West Norfolk Borough council withdrew their supportfrom the Waste Strategy. I have recently received a letter from the Norfolk Waste Partnership that the Waste Strategy objectives have been revised and that Kings Lynn and West Norfolk, although potentially supportive of the revised objectives, remain withdrawn from the waste strategy and feel that it should be revised to look at other technologies and practices.”

The secretary of state also notes that there is a Judicial Review ongoing against Norfolk. She concludes by saying that Norfolk can have the opportunity to submit additional evidence in relation to the existence of a broad consensus.

Shivers

Bill Borrett, cabinet member for environment and waste at Norfolk county council, said: By taking this approach, the secretary of state will send shivers down the spine of all other authorities with major waste treatment proposals in the pipeline. It has never previously been a criterion that a major waste treatment proposal had to demonstrate wide support in the locality it was proposed for.

By taking this approach, the secretary of state will send shivers down the spine of all other authorities with major waste treatment proposals in the pipeline
–Bill Borrett, Norfolk CC

I doubt there are many, if any major infrastructure projects anywhere that could be delivered if Caroline Spelmans apparent change of approach is repeated elsewhere.

In a statement, Norfolk noted that the delivery of the governments waste strategy and a number of local government PFI waste proposals are now potentially compromised as a consequence of DEFRA Secretary of State Caroline Spelmans decision to withhold release of PFI credits for a Norfolk energy from waste proposal because of concern about the large volume of objections.

The statement continued: Norfolk County Council had secured provisional waste PFI credits to help offset the cost of a project costing in the region of 500 million in Kings Lynn, West Norfolk, over 25 years and was expecting confirmation of the final release of the credits based on a business case that has already met stringent government value for money tests.

In its statement the authority says that the indications were that its business case had met Defras criteria and the also council claims that previous recycling minister Lord Henley had given provisional approval.

The statement added: All the indications the authority had received from DEFRA were that the authoritys business case met the necessary criteria. But the letter from Caroline Spelman received by the Norfolk authority says that the Secretary of State wants to see yet more evidence that the proposal meets the criterion that: Proposals should demonstrate that other relevant Authorities, the public and interested parties have been consulted and that there is a broad consensus supporting a recognised long term waste management strategy which is reflected in the proposed solution.

Local opposition

Referring to local opposition, Norfolk said: The Norfolk proposal has generated very strong local opposition in the borough for which it was proposed and from the local MP. This was heightened as a consequence of the decision by the local borough council to hold a non-binding local advisory poll on a single issue question – even before contract was awarded or any planning or permitting application was received. The poll, which neither the applicants nor the county council could participate in for legal reasons, delivered an overwhelming No vote to the scheme and in June this year the borough council subsequently withdrew its support from a countywide waste strategy it had previously endorsed consistently and helped to develop.

And the authority explained that a poll conducted by the borough council of Kings Lynn and West Norfolk asked local residents: Do you support the construction of a mass burn municipal waste incinerator on the Willows Business Park, Saddlebow, King’s Lynn? It said that the verdict was a clear no from 65,000 Kings Lynn and West Norfolk residents. The poll turnout was high at 61.33%. The no vote represented 93% of votes received and 57% of the west Norfolk voting population.

In favour

But, the council said a ComRes survey across the county of Norfolk, conducted on behalf of the applicants, Cory Wheelabrator, at the same time demonstrated 65% of Norfolk residents were in favour of the proposed new Energy from Waste plant.

The council added: An application to the High Court for a judicial review of the processes by which Norfolk County Council Cabinet Members decided to approve the award of a contract to the Cory Wheelabrator consortium will be considered on 6th December 2011. The Secretary of State has also referenced this JR in her letter to the authority.