The council is also criticised for having one of the worst recycling rates in southern England at county level, although the Audit Commission inspectors do see grounds for optimism in that the authority has recently raised its recycling rates at civic amenity sites from 21% to 29%. Overall the council’s performance on waste and recycling is relatively low on the Audit Commission scale, receiving one star and the comment that it is a fair service “that will probably improve”. However, the Commission sees the PFI as the “way out” for the council, stating: “In the circumstances facing the two councils [a reference to Brighton and Hove council which is a partner in the PFI contract], a PFI offers an excellent long-term scheme to deal with waste disposal issues in East Sussex.
Two contractors are currently bidding for the PFI contract which could cost East Sussex and Brighton and Hove more than £1 billion over the next 25 years.
In a report on the situation at East Sussex alone, the Commission explains that PFI credits increase the spending limits of councils and allow them to agree the provision by the private sector of facilities like schools,
roads and waste disposal plants. In return for the facilities, the
councils pay an annual charge to the private sector companies over
long periods, such as 25 years.
It notes that the councils’ original bid to the government was for a PFI credit of 69m, and after further work, this was
revised to 49m, which the government agreed to support. The Commission’s inspectors say: “The councils are to be commended for their partnership approach to the government. The amount of the PFI credits are however only a fraction of the total cost of the PFI arrangement, which is estimated to cost over 1,000 m over the next 25 years. It is therefore vital that such a long-term and costly commitment has been well planned, has identified all significant risks and built these risks into contingency plans and factored-in long-term costs.”
Solution
East Sussex produces 1.25 million tonnes of waste each year, about 20% per cent of which is household waste. The county provides 12 household waste sites where the public can bring waste for disposal or recycling. Almost 5% of of the waste disposed in East Sussex goes to landfill in Pebsham and Beddingham but these sites will be full within years. Through the PFI the county hopes to find a solution where a private company builds a facility and operates a service and in return receives an annual payment from the Council for a long period.
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