Envirolink Northwest, a regional development body for environmental projects in the northwest, has collapsed following funding cuts, its liquidators have revealed.
The not-for-profit scheme provided support for low carbon and environmental services industries in the region, and established a dedicated team for the waste and recycling sector in July 2006.
It had previously been funded by the now defunct Northwest Regional Development Agency (NWDA), the European Regional Development Fund (ERDF) and local authorities from the region.
But according to its liquidators, Envirolink Northwest ran into cash flow difficulties as a result of funding cuts and increasing difficulty in securing funding from the European Union.
Among its projects in the waste industry was a 4 million support programme for recycling initiatives, set up in October 2006, aimed at stimulating research and development and to promote new technology in the sector.
The body had helped establish the regions first trade waste recycling centre, at Haydock near St Helens in 2010, as well as funding recycling trials for polypropylene carpets, and commissioned research into increasing household plastics recycling in the region.
It worked alongside Defra on a 13 million Mechanical Biological Treatment plant in Huyton, Merseyside, converting waste into a refined biomass fuel (see letsrecycle.com story).
The organisation was also working with compliance specialist Valpak to provide businesses in the northwest with advice on waste legislation, waste management and recycling services and offered free support for small and medium sized enterprises in procuring waste services.
Funding
Liquidator Bev Budsworth, of business recovery firm The Business Debt Advisor, said on Friday (January 11): For a limited company that helped support so many businesses and created jobs in the region, it ultimately failed because it became increasingly difficult to get sign-off and payment on European-funded projects. Severe funding cuts also drastically reduced turnover causing cash flow issues.
Saving the business just wasn’t possible as there were very few remaining projects and no sustainable business to sell. Envirolink has suffered like many others in the ‘not for profit’ sector with government cutbacks affecting many worthy projects.
Following its establishment in 1999, the Warrington-based not-for-profit organisation reached its peak in 2010, with 90 staff and a turnover of more than 6 million.
All 19 of the firms remaining staff have now been made redundant.
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Commenting on the news, Keith Freegard, director of Manchester-based waste and recycling consultancy Axion Consulting, which has worked with Envirolink Northwest on several projects, said: I always respected Envirolink as an organisation and they have worked on some good projects and were a good networking tool for many businesses in the region. I think it will be a big loss for the area, and I dont know who will fill the gap that they will leave.
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