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Veolia drops legal challenge over Thurrock contract

Veolia drops legal challenge over Thurrock contract

Veolia Environmental Services has dropped a legal challenge against Thurrock council over the Essex local authority's decision to take its £33 million waste and recycling collection contract in-house.

Thurrock council - which has headquaters in Grays - welcomed Veolia's decision to withdraw its legal challenge
Thurrock council – which has headquaters in Grays – welcomed Veolia’s decision to withdraw its legal challenge
The waste management firm yesterday (March 29) announced it would be withdrawing its challenge to Thurrock's intention to take the seven-year contract in-house from April 2010, having launched proceedings in the Chancery Division of the High Court earlier this month (see letsrecycle.com story).

Veolia, whose seven-year collection contract with Thurrock expires tomorrow (March 31), had contested the “unlawful management” of the procurement process for the deal by the unitary authority.

However, Veolia has opted to drop its challenge for unspecified reasons, making it the second time the company has aborted a legal challenge to the Essex authority's decision, having withdrawn attempts to secure a High Court injunction against the decision in February 2010 (see letsrecycle.com story).

Commenting on the decision to withdraw its second challenge, a spokesman for Veolia said: “We can confirm that we have withdrawn our potential legal proceedings against Thurrock council relating to the award of its waste collection and recycling services contract.”

However, Veolia declined to expand on the reason behind withdrawing the latest attempt at legal action.

The waste and recycling collection contract – which also covers 40 bring sites – was the largest of six lots covering a wide range of waste services put out to tender by Thurrock in April 2009. And, the decision to take the contract in-house is intended to save the council around £2 million and offer the council greater control over its delivery.

The Veolia spokesman did state that the company “looks forward” to continuing its working relationship with Thurrock, which sees the French-owned firm handle household and green waste from household waste and recycling centres and kerbside bulky waste that cannot be recycled or reused.

Veolia had been in charge of residual waste treatment in Thurrock up until last week (March 22), when the council awarded a £21 million, seven-year deal to Northamptonshire-based Waste Recycling Group (WRG) (see letsrecycle.com story).

A spokesman for Thurrock council said: “Thurrock council is pleased to confirm the Veolia action has now been withdrawn. We now look forward to working with Veolia and their staff in delivering these key front-line services to the residents of Thurrock.”

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