Cornwall votes to sign PFI contract with SITA

The vote came this morning in a full meeting of the council, giving full agreement to plans by SITA to manage around 330,000 tonnes of municipal waste produced each year in Cornwall over the next 30 years.

” I am sure that other authorities – which have got less for a higher price – will be envious of what we have achieved. “
– Cllr Adam Paynter, Cornwall CC
The vote to agree the contract was only narrowly carried, with 35 councillors in favour, 28 against and 4 abstaining.

A new subsidiary company is being formed to steer the contract, named SITA Cornwall Ltd.

Although the contract is anticipated to see seven redundancies, the county said most of the 240 staff from Cornwall Environmental Services, Cornwall Paper Company, West Country Recycling and Sid Knowles Waste will transfer to SITA.

Council leader David Whalley said: “We are confident that the contract with SITA provides a value-for-money, environmentally sound solution to Cornwall's long-term waste management needs.”

Incinerator
The contract, backed by 45 million in government PFI credits, will include the development of an energy-from-waste incinerator to process about 240,000 tonnes of residual waste each year.

But the county council said if the incinerator runs short of household waste – if recycling rates increases – SITA will be allowed to use it for commercial or industrial waste. The company is not permitted to bring waste in from outside county boundaries for treatment.

Local MP Matthew Taylor has demanded a Public Inquiry over the plans to use incineration in the county (see letsrecycle.com story).

The county currently landfills about 72% of its waste, but the PFI contract will see this rate dropping to 20%. “Huge” investment is to be made in upgrading county recycling centres, which will see SITA penalised if the company fails to achieve at least a 50% recycling rate. The upgrade programme will include six new household waste recycling centres across the county and seven redeveloped facilities.

The contract will also see six transfer stations and five composting facilities developed.

County councillor Adam Paynter, who is executive member for environment and heritage, said: “Until now, because of commercial confidentiality, we have not been able to provide members with details of the excellent deal that has been negotiated for Cornwall.

“I am sure that other authorities – which have got less for a higher price – will be envious of what we have achieved,” Cllr Paynter said.

SITA was appointed preferred bidder for the Cornwall contract in January, beating off a shortlisted bid from Spanish-owned Focsa UK.