The business case for developing an incinerator in Shrewsbury has been called into question in a documentary broadcast last night (November 1) in the West Midlands.
Veolia Environmental Services is seeking to develop the 90,000 tonnes-a-year capacity energy-from-waste incineration plant under its long-term, PFI-backed waste management contract with Shropshire council.
The plant was refused planning permission in September despite being recommended for approval (see letsrecycle.com story) and Veolia is currently considering the merits of appealing to Eric Pickles, Secretary of State for Communities, over the decision.
Reporter Mary Rhodes said, despite the rejection, “the scheme hasn't gone away yet” and met with representatives of the council, economic experts and waste management professionals to discuss the plant.
At the heart of the report, she found that a copy of the business case for the proposed energy-from-waste incinerator – obtained by ‘Inside Out' – stated that the need for the plant was based on three-year-old projections of waste arisings increasing alongside a growth in housing stock in the county.
Ms Rhodes said this meant the project was predicated on a “big gamble” of waste arisings increasing at a time when Shropshire's recycling rate is increasing, the recession has limited waste arisings and councils face increased spending cuts.
She said: “Shropshire predicts the amount sent to landfill will actually increase in the county over the coming years and it has to, because, for the incinerator to become economically viable Shropshire has to burn more waste than it currently sends to landfill.”
Flexibility
Furthermore, Ms Rhodes questioned the flexibility of the county entering into a 27-year contract with Veolia for the plant. She pointed to a “very similar, very rigid finance agreement” struck between Stoke city council and its contractor Hanford Waste Services, which has now seen Stoke billed by Hanford for failing to meet tonnage requirements (see letsrecycle.com story).
Ms Rhodes concern over the length of the contract was supported by Dr Dan Coffey, senior lecturer in micro-economics at Leeds University Business School, who said “it is not private sector practice” to enter into long-term deals which limit or remove flexibility.
However, Ms Rhodes also met with Andy Goldsmith, assistant director for public protection at Shropshire council, who defended the business case for the plant and stressed its need for future waste management in the region.
He said: “We need a solution for council, we need a solution for the businesses, we need a solution for the offices and restaurants and I think, and I believe, and I stand here and do believe that it is a viable solution for dealing with waste that can't be effectively recycled and there will be enough of that waste that will need to be treated.”
Speaking to letsrecycle.com, a spokeswoman for Veolia Environmental Services Shropshire said the firm supported the comments made by the council and said Veolia had set out the need for the plant during its initial proposals.
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