A document produced for the London borough’s Places Overview and Scrutiny Committee ahead of a meeting tomorrow (26 June) has warned that a hard Brexit could add to the expected cost of procuring the 160,000 new containers needed for its new service.
There may also be an impact on the value of recyclable commodities collected by the council, the report adds.
On the delivery of the new wheeled bins, the report said: “The potential of a hard Brexit with no transition period has reduced in recent weeks.
“If a hard Brexit was to occur there are two risks – a 6.5% tariff on the anticipated cost of £3.5 million and potential delays in delivery.”
A tender for the provision of the new containers is currently being completed, and a supplier is expected to be appointed by the end of July. It is estimated that it will take 14 weeks to roll-out the new containers.
Recycling market
The report also details contingency costs of £300,000 for 2019/20 and £110,000 for 2020/21. These should cover the possible reduction in income from new plastic packaging, cartons, cans and container glass mix, due to changing global prices, the report added.
“The recycling market is currently unpredictable due to changes in policy in China and SE Asia (this affects plastic recycling) as well as for paper and cardboard much of which is exported to Europe for reprocessing where there is uncertainty due to the Brexit processes so prices are currently low,” the report states.
Due to market conditions initial income is expected to be low but should increase as prices stabilise.
Bexley – which has been London’s highest performer for recycling for around 14 years – is switching from a system where households sort waste into three recycling boxes to a new scheme using two wheeled bins. One bin will take paper and cardboard, whilst the other is for commingled recyclables including plastic, glass, cans and cartons.
The council claims the new system, which will see a fortnightly recycling collection, is preferred by residents – and it is also expected to save the borough money and push recycling rates, which stand at around 52%, higher.
Bexley council will also be hiring two new recycling advisors and Serco will supplement their management and supervision team in the borough with one new full time and one new part time manager to assist implementation of the service.
*Update: The story originally suggested that a supplier for the new containers had been secured. However, the council has since clarified that the contract is still out for tender.
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Bexley recycling changes
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