“Current official policy is undoubtedly exacerbating an uncertain
investment climate and difficult trading conditions,” Dirk Hazell, chief executive of the Environment Services Association said this week.
Confirmation of the pressure being faced by the waste management sector came last week with the Suez first half of 2001 results. The French company noted that its UK operations (which are through SITA) faced a “price drop in landfilling tariffs implemented in the United Kingdom.”
SITA spokesman Achilleas Georgiou explained that the Suez comment reflected the generally low prices of tipping that are to be found around the UK, adding that SITA, as is the industry as a whole, is looking at a move to other waste management options. “Certainly we are doing a lot of recycling and it is an area that we will grow.”
SITA's financial performance may this year have been hit by its difficulties in Brighton contract where it has opted to leave.
Meanwhile, the company is also undergoing a reorganisation process which Mr Georgiou said was going well and would help grow future performance.
The new structure at management level of SITA today sees Ian Goodfellow continue as managing director, Rob Wheatley – formerly chief executive of United Waste – as director and general manager and Peter Neill – formerly managing director of United Waste – as regional director for the north.
SITA has split its operations into four regions. The Midlands is managed by David Knott, the municipal areas of the South West and South East by David Foster and the South East by Philip Scarborough.
Mr Georgiou said that while there had been some restructuring and some job losses in the regions, the workforce of the combined businesses had remained at around the 7,500 level and was not much changed from when the businesses were separate.
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