Waltham Forest council announced this week that it will terminate its £30 million household waste and recycling contract with Verdant six months early in order to make “meaningful service improvements while reducing costs”.
The contract, which has been in place since 2007 (see letsrecycle.com story), was meant to end in April 2012 with the option of a two year extension, but will now end on October 2 2011. The council claimed that the contract was terminated early in order to allow the borough to deliver enhanced waste reduction, recycling and disposal services which were not covered by the present deal.
However, despite the urgency shown in ending the current contract six month early in order to make way for a new service Waltham Forest was unclear on how any new contract would differ from the current one.
Performance
The council insisted that the change was not a reflection of Verdant's performance.
Councillor Clyde Loakes, cabinet member for the environment commented in a statement: “Verdant agrees with the council that it is best to end the contract early so that we can secure investment in a new service through a more modern, long term contract.
“I feel it is important to state that the early end to the contract does not in any way reflect on Verdant's performance. We are grateful for the company's professionalism during this important time.”
He added: “We want to make significant changes to our recycling service but it is financially and logistically difficult to make these changes within the scope of the present contract which is due to expire in March 2012.”
The council did not refer to the £596,000 that was earmarked in September this year by its Audit and Governance Committee for, what was listed in its minutes as, a “Verdant Contract Dispute”.
The council already provides a comprehensive recycling service for its householders. It currently runs a compulsory recycling scheme for dry recyclables. Residents can recycle paper, cardboard, glass bottles and jars, food and drink cans, plastic bottles, textiles, shoes, batteries and engine oil. Waltham Forest also offers services for the following waste streams:
• Food waste
• Garden waste
• Bulky waste
• Hazardous waste
• WEEE
• Residual waste
• A paid-for trade waste service
However, despite the range of services on offer, Waltham Forest is currently languishing in the lower third of the English recycling league table with a recycling rate of 17.34%; a composting rate of 10.43%; and a total rate of 27.77%.
Verdant
Roger Edwards, managing director of Verdant, said the decision to terminate the contract was “mutually agreed” and pointed out that as the contract was a five year one and that ending it just six months early should be “kept in perspective”.
He added: “As has been emphasised by the council, this early termination in no way reflects on Verdant's performance in delivering Waltham Forest's service requirements, and the council has clearly stated its appreciation for our professionalism.
“It is simple. The council wants to provide additional services that will expand recycling and reduce waste in the borough but which cannot be delivered within the parameters of the current contract. Hence our joint agreement to end the contract slightly early so that the council can finalise the specifications for its new service requirements and so give service providers, including Verdant, the opportunity to respond to its tender.”
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