PM told councils not ripped off by waste contracts

The Environmental Services Association has written to Prime Minister David Cameron to refute claims made by communities secretary Eric Pickles that councils are being ripped off in waste contracts.

In the letter sent last week (October 4), the waste sector trade bodys chairman Ian Goodfellow said that the comments made by Mr Pickles on the day he announced 250 million in funding for weekly waste collections were unfounded and deeply unhelpful.

The letter follows comments made by Mr Pickles during an interview on the BBCs Today programme on the morning the details of the 250 million fund first emerged (see letsrecycle.com story). One of the ways Mr Pickles said councils could free up money for weekly waste collections was through better procurement.

And, on the Today programme, he said: Its certainly my view that local authorities are being ripped off in refuse collection contracts. This [fund] will offer them an incentive to club together so theyre in a better bargaining position.

In his letter to the Prime Minister, Mr Goodfellow said that was no evidence for councils being ripped off by contractors. On the contrary, the ESAs members compete fiercely to win these contracts and offer excellent value for money, he said.

In a separate letter sent to Mr Pickles himself, Mr Goodfellow cited the example of Basildon council, which, he said, had recently said that its new waste contract would save it over 1 million a year largely due to the competitiveness of the market.

‘Doubly disappointing’

In his correspondence, Mr Goodfellow, who is also managing director of UK waste company Shanks, said Mr Pickles comments were doubly disappointing given the waste industry was poised to invest between 10 billion and 20 billion over the next 10 years. He said this money would create the growth and employment the country so desperately needs.

He added: Having members of the Cabinet disparage the industry without any evidence hardly encourages our sector to see the UK as a favourable investment location.

Mr Goodfellow also said that the huge strides in local authority recycling rates achieved in recent years had only happened because of investment by the waste management sector, and emphasised government support for public services to be open to a range of providers.

And, he asked Mr Pickles to provide any evidence he had to support his remarks so the ESA could properly respond.