London Reuse Network almost 50% behind target

Anupdate report on the London Reuse Network published on December 13 2011 by the London Waste and Recycling Board (LWaRB) reveals that the network only expects to reuse 1,400 tonnes of material in 2011/12, which is 48% (1,263 tonnes) short of its 2,663 tonnes target. The report was prepared by the chair of the London Reuse Network Partnership Board, councillor Clyde Loakes.

London Re-use Limited (LRL) was set up in 2010 by the London Community Resource Network (LCRN). It was awarded £4.4 million of secured funding against the original £8.1 million by the London Waste and Recycling Board (see letsrecycle.com story). This funding was protected even when the LWaRB’s own budget was cut substantially by Defra in September 2011 (see letsrecycle.com story). The remaining £4 million may follow if future cash flows to LAWARB allow this.

The network was intended to build and develop the model to increase the re-use of unwanted household items across London that would otherwise be destined for landfill. At the time of its launch the LCRN said it would be the largest and most ambitious developing re-use model anywhere in the world.

The network is set to create six clusters across the capital in which local authorities can work with charities to help collect, repair and reuse items with the goal of diverting 17,000 tonnes of material away from landfill within the first two years.

Push back

As revealed in the document, as of December 13 2011, LRL was running behind schedule, with only £347,000 having been paid into schemes by that date, against an initial plan of £1.28 million.

However several schemes had yet to receive their funding. A repair and reuse workshop in Smugglers Way, Wandsworth, a pan-London paint scheme and a capacity building in the central cluster were still awaiting funding of approximately £70,000 per scheme. The workshop in Smugglers Way has since received its funding and opened in early January 2012.

The report stated: 2Significant push back has been experienced from these schemes, whose approved investments are approximately £70,000 per scheme. The push back is related to the charge over assets required in the Funding Agreement. Both the LRL Board (London Reuse Ltd) and LRL Investment committee have approved the development of a Funding Lite agreement which reduces this burden under specific condition.2

Investment

Explaining the situation with regard to the project, Charles Craft, managing director, London Re-use Ltd, said: “London Re-use Limited is responsible for managing the investment of re-use projects which will help build and develop the London Re-use Network with the support of the London Waste and Recycling Board (LWARB). Investment started in April 2011 rather than January 2011 to ensure sufficient time was provided to develop a robust business and governance structure for the investment process.

“This resulted in a delay in releasing funding for re-use projects, causing a shortfall in tonnage targets at year end and less money being allocated over that period. Despite this, we have still processed over £1 million of investment to date and, as part of our overall strategy; will make up the tonnage shortfall by April 2013. The London re-use sector as a whole processed 7,600 tonnes of materials for re-use last year and will exceed 9,000 tonnes this year so there is growing demand and interest in re-use projects.”

Mr Craft added: “The application process for projects to receive funding from London Re-use Limited is rigorous to ensure potential projects fulfil the required funding and re-use tonnage criteria and procedures. As a result, projects have been submitted and processed more slowly than expected as they are required to produce detailed business plans. This approach has enabled London Re-use Limited to manage the investment fund more prudently and we are pleased with the outcomes of the decisions made, as this has ensured that the money has been allocated appropriately and not just been issued to achieve tonnage targets.”

Looking forward, the LRL board has written a revised Five Year Strategy and Annual Implementation Plan which sets new contractual milestones for the Network.

LRL is also looking to develop a recognised quality standard for reuse organisations across the Network and audits will begin on the first four schemes as part of its plans to accredit 16 schemes with the Furniture Reuse Network quality standard.

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