Resource Efficient Solutions LLP (RES), which began trading in April 2014, was established by Fife council to provide frontline services on behalf of the local authority, other public bodies and the wider business community.
Fife claims that the firm is on course to bring savings of around £1.2 million in its first year of operations.
The firm is a recent addition in the growing trend for councils to launch their own ‘arm’s-length’ companies to make savings on lengthy procurement procedures or outsourcing contracts to the private sector (see letsrecycle.com story).
RES operates waste management facilities near Dunfermline and Ladybank, where it processes waste delivered by Fife council, waste management firms and other commercial traders.
Operations
The firm has a number of operations across both sites, which includes recovery of recyclables, the production of biomass fuel from wood waste, composting, and the production of renewable power.
The forecast savings come from new income from trading activities and operational savings made by the company since it began trading.
The company provides ‘consultancy services’ to other councils, sharing expertise gathered in delivering Fife council’s household waste and recycling services. Local authorities in Angus, Argyll and Bute have consulted the specialist teams at RES.
Councillor John Wincott, RES chairman, said: “Resource Efficient Solutions’ performance in its first year of operations is excellent news. We expect that this success will benefit the Fife council to the tune of £1.2 million this year alone. This is down to the development of new income streams and driving down costs in key areas.
“The overall performance is even more pleasing given the very challenging trading conditions that we have experienced in some areas this year. This result is a testament to the outstanding work of all of our employees whose knowledge of the industry and hard work have given the company an excellent first year.”
Growth
He added: “We intend to build on this success by further sales growth and by expanding our operations to include commercial and industrial waste collection. We will also be looking at expanding the provision of consultancy services in renewables. In doing this, our goal is to make a significant contribution in helping to meet Fife Council’s funding gap of £77 million.”
The rise of council-owned companies has caused some concern in the private sector, with the Environmental Services Association arguing local authorities should tender on the open market if they want to achieve value for money (see letsrecycle.com story).
The trade association also cautioned councils entering into cooperative arrangements with arm’s-length firms not to breach procurement law.
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