Termination of the contract comes after Bristol – the European Green Capital for 2015 – saw a 4% fall in its recycling rate from 45.3% in 2012/13 to 41.5% in 2013/14. The council has said that the decision will allow it to exercise ‘more direct control’ over waste services and is for an initial one-year period.
The move, which will be subject to a settlement agreement between the council and Kier, was approved at a Cabinet meeting on Thursday 11 June, and sees the contract end three years ahead of schedule.
The new system will be operated for a year whilst the council looks in full detail at the best long-term service model.
May Gurney took over the Bristol contract from SITA UK in November 2011 – with the work subsequently transferring to Kier following its takeover of May Gurney in 2013 (see letsrecycle.com story). The seven-year contract was worth around £14 million per year.
Teething problems
The city council has warned residents that there are likely to be some teething problems as employees, vehicles, equipment and facilities will move across to the council-owned firm.
Currently the city operates a kerbside sort system with green box for cartons, cardboard, plastic and metals, and a black box for batteries, glass, textiles and paper, both collected weekly from Bristol’s 189,000 households,
Food waste is also collected weekly, as well as garden waste which is subject to a subscription charge. Residual waste is collected fortnightly. None of the collection arrangements are due to change as a result of the change in contract.
Bristol Mayor George Ferguson said: “As European Green Capital we have bold aspirations to change the way we think about waste as a city, from waste to a resource. We place an increasing emphasis on re-use and recycling and recognise that, after maximising on reuse and recycling, using residual waste as an energy source is better than landfill. We believe that the best way we can do that is to exercise more direct control over our vitally important waste collection and street cleaning services.”
Negotiated
Cllr Ferguson added: “Following negotiations with Kier we’ve mutually agreed it’s in everyone’s best interests to end our current contract, something which the carefully negotiated deal allows for without penalty.
“The deal should also provide more certainty of service affordability as well as helping us to realise our future ambitions for waste management in the city.”
Julian Tranter, managing director of Kier Environmental, said: “When we acquired May Gurney and took on the delivery of the Bristol contract we recognised the issues being faced by both the client and the operational team, and we believe we have made good progress in improving service delivery.
“In parallel we have been working together to review the long term model of service, to find a beneficial solution for both parties, and this has now concluded in agreement to mutually end the contract, and move service provision to a new council-owned company.”
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