The decision will see the North East council terminate the two-year extension on its recycling collection contract with Biffa, which was due to run until April 2017.
According to a council report presented to the cabinet on Friday (September 4), Biffa has ‘fallen into dispute’ with its local materials reprocessor over the quality of the loads – many of which have been rejected due to the level of contamination.
It follows Middlesbrough’s decision to switch from kerbside sort to mixed collections of recyclables in a single 240 litre wheeled bin– after the council successfully bid to the government’s Weekly Collection Fund in 2013.
The move proved ‘extremely popular’ with residents with participation increasing from an estimated 35% to 80% and the household composting and recycling rate rising from 22% to almost 40%, the report explains.
However, it adds that in recent months the market for reprocessed materials has suffered a ‘major collapse’, which has resulted in prices falling and materials being scrutinised more closely for contamination.
As a result, the council has said that Biffa has indicated that the contract is now unsustainable and is attempting to pass on a high level of increased cost to the council.
It adds: “These additional costs are associated with hand sorting of the material following collections to reduce levels of contamination prior to re-processing, and from having to transport the material to an alternative re-processor in the Midlands.”
Inspection
The report continues that Biffa has implemented a pre-inspection policy of bins prior to collections, and claims this has led to missed collections and ’embarrassed’ the council.
The council executive approved the recommendation to bring the contract in-house on Friday after debating whether to accept a ‘revised proposal’ from Biffa. According to the report, this would have involved the council taking responsibility for the transportation of recyclables and extracted residual materials after they had been sorted post-collection.
In bringing the service in-house, the executive was assured that officers had managed to secure a fixed reprocessing offer with a local company which would ‘de-risk’ the council from future market volatility.
It adds: “This re-processor would also deal with the levels of contamination which are generally experienced in the recycling bins without any requirement for pre-inspection of bins or post collection sorting of the materials by the council.”
Refuse
Middlesbrough Council already carries out both the normal refuse and green waste collections in house. Return of the recycling service will involve the transfer of 16 staff to the council.
Middlesbrough Mayor Dave Budd said: “The issues we have faced with recycling collections in recent months are the result of a number of events occurring simultaneously which could not have been foreseen.
“However, the current collection arrangements cannot continue as they are and I believe the option to bring the service back under Council control provides the most cost effective solution.”
He added: “We will continue to provide information to residents on a regular basis, and ask that residents continue to follow the recycling ‘dos and don’ts’ which should now be on the guidance sticker on their blue-lidded bin.”
Mutual
Commenting on the decision, Biffa said the recycling service had ended ‘by mutual agreement’ but would be ‘very interested’ in any future decision by the council to consider working with an external partner.
It described their relationship with the council as ‘excellent, open and professional’ with a noticeable increase in recycling participation.
A Biffa spokesman said: “A culmination of factors meant the council felt that the best future for the town’s recycling service was running it in-house.
“This mutual and amicable parting does not, and should not, reflect badly on the high service standards provided by Biffa in Middlesbrough for some years, as the council has confirmed.”
In June, Middlesbrough decided not to transfer waste and recycling collections to Norse, an arm’s length organisation owned by Norfolk county council, arguing that it would not ‘fully deliver’ the unitary authority’s needs (see letsrecycle.com story).
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