London textile contract could devastate charities

A winner takes all approach for the sale of textiles across London could strip charities of their ability to fundraise, textile recycling charity TRAID has warned.

The charity has voiced its concerns following the publication of a report that detailed proposals for a pan-London consortium contract for the collection of textiles from bring banks (see letsrecycle.com story).

The idea is being investigated by the London Waste and Recycling Board (LWaRB) and London Councils. It is hoped that a move to a consortia contract could save London local authorities money through joint procurement and shared services. It was acknowledged at the time that the position of charities should be taken into consideration when structuring the contract.

However TRAID has said that the contract could devastate its charitable income and have a severe impact on other charities and textile recyclers.

Maria Chenoweth-Casey, chief executive at TRAID, said: While the details of the proposal are not yet clear, the impact is. If textiles are tendered out to the highest bidder on this scale, charities will be forced to remove all banks from council controlled sites, Londoners will no longer be able to donate their unwanted textiles to charity textile banks on council sites and what was once income for charities will be diverted to councils.

TRAID said it stands to lose up to 458,000 in funding revenue every year if it is forced to remove its 184 textile banks on local authority sites as a result of the proposed contract.The textile banks are operated by TRAIDs trading arm. The charity raises funds exclusively from the collection, reuse and resale of unwanted textiles.

Alternatives

Ms. Chenoweth-Casey urged councils to consider alternative options as she said charities cannot always compete with commercial companies on price, duration or size of the contract.

She said: We would urge councils to consider alternatives to tendering which do not penalise charities and our work and are enormously encouraged by some of our longstanding council partners which continue to support charity textile collection, and the huge benefits it brings to peoples lives and the environment.

Concerns

However, London Councils has assured that no decisions regarding the contract have been made and that it is in talks with the Charity Retail Association to assess the impact the contract could have on charities operating in London.

A spokesman for London Councils told letsrecycle.com: We are aware of concerns about the impact this might have on charities. Local jobs and involving charities are important to councils, and we have discussed the proposal with the body representing charity shops. These are just proposals and discussions are at a very early stage. No decisions have been made.

In January 2011 the Salvation Army voiced its concerns that charities were being squeezed out of the textile bank market as councils seek more revenue for their material (see letsrecycle.com story). And, textile recyclers said that they were also increasingly losing out (see letsrecycle.com story).