Councils are being warned off entering into agreements with Tesco which require them to pay for tonnage data from recycling banks the retail giant is now managing outside its stores.
Andrew Craig, principal policy officer at the Local Authority Recycling Advisory Committee, made the call after revealing that some councils had been told by Tesco that they did not have to pay for the figures.
The issue of councils having to pay for tonnage data to count towards their recycling figures was one of the most contentious issues surrounding the April 2011 revelation that Tesco was installing a single contractor DS Smith Recycling – to manage the sites (see letsrecycle.com story).
Mr Craig explained: We did have a problem with Tesco demanding the local authority help to pay towards the cost of the recycling facilities if they wanted to get the information for the tonnage collected at it.
But, he said: Tesco have said they have dropped this requirement with a couple of councils and if authorities havent signed an agreement involving them paying for recycling data they shouldnt have to.
He added: I want to make sure authorities arent placed in a position where they have to make a payment on an agreement.
It appears likely, however, that councils will still miss out on revenue from the sale of material collected at the sites. Some in the national media claimed this could see them miss out on 1 million a year (see letsrecycle.com story).
Tesco
Commenting on its position regarding tonnage data and the value of material, a spokeswoman for Tesco insisted that the supermarket was providing its own banks as a trial and said it was confident that no-one, including councils, would lose out.
She told letsrecycle.com: We developed a trial to provide our own recycling banks in store car parks in response to some councils telling us they were going to take theirs out.
We remain committed to finding a way forward which meets everyone’s needs. This includes going back to the old system if that’s what they want.
She added: This trial was only ever about ensuring customers could continue to bring their recycling to our stores and we are confident that nobody will lose out as a result.”
End of targets
Mr Craig questioned whether councils should be so concerned about securing the tonnage data for material collected at supermarket recycling sites, given the absence of any centrally-set recycling targets for local authorities.
Some authorities seem to have a mindset where they think they need the tonnage for their recycling figures but with no more recycling targets I wonder if some local authorities are governed by something they no longer have to prove, he said.
But, he noted that recycling centres being run by a retailer or their contractor could impact on councils in other ways.
If the recycling centre isnt in partnership with the authority, the retail outlet could be said to be in competition with the authorities for material, he said. Its generally recognised that, because those recycling centres are the best ones and most used, and therefore most financially efficient to collect from, then the authority loses money because the ones they run are the least efficient.
Code
Mr Craig explained that the relationship between retailers and councils in relation to recycling banks was under consideration as part of the ongoing review of the 1999 code of practice for recycling facilities at retail sites, which was agreed by LARAC and the British Retail Consortium.
While acknowledging that the review was going very slowly, Mr Craig said LARAC had made some progress, and added hopefully, around autumn well be able to sit down with them and work this out.
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