The city council’s cabinet has been recommended to acquire the shares of Enterprise Liverpool Ltd as the ‘quickest and most economical way’ of establishing a local authority-owned company.
Enterprise Liverpool Ltd, a joint venture with private contractor Amey launched in July 2013, was initially due to continue until 2022.
But in August the decision was made by the council and GMB union members to terminate the contract early following a string of issues relating to the £8 million per year contract, including industrial action over pay disputes in 2013 (see letsrecycle.com story).
The existing workforce, with the support of the Unions, put forward the proposal for a Local Authority Trading Company, arguing that it will allow the council more flexibility in the service to improve performance and reduce costs.
The report allows the acquisition of the 80% of the shares from Amey creating a legal framework for the wholly-owned firm and purchase the existing vehicles used to deliver the service.
This would see the company take ownership of six trade waste vehicles and 36 bin wagons. The report also authorises the lease of the company’s base of operations to allow the service to continue without disruption.
Delivery
Councillor Steve Munby, cabinet member for Neighbourhoods, said the council’s “overriding aim” was to deliver a high performing collection service for the city’s residents.
He said: “We now have the opportunity to introduce a service that the workforce and council believe in, one that works together. The new proposed service arrangements will support us in reaching our aspirations and our recycling target.
“These legal agreements allow us to move to the new company in a quick and efficient way. We are confident that the changes we have agreed with the workforce will deliver savings of £1 million a year in running costs and help us reach our recycling target of 55% by 2020.”
Cost
He added: “The icing on the cake is that we will bring the Grounds Maintenance contract into the Local Authority Trading Company three years before the contract would have finished. This is costing us £3 million a year at present and I believe there is scope for considerable savings.”
New in-house waste and recycling collections are due to be rolled out across Liverpool as early as next week (November 7), covering 217,000 properties.
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