Shrewsbury MP Daniel Kawczynski today claimed Shropshire Council would be forced to pay compensation if it wanted to pull out of a deal for a controversial £60 million incinerator in the town.

The Tory MP claimed Shropshire Council would have to pay waste management firm Veolia a sum under a 27-year waste contract signed last year if they try to veto the scheme.

Mr Kawczynski said council officials had so far refused to disclose how much the cost would be, but said it was “vital” residents were aware of the figure to decide whether they would be willing to pay more council tax in order to prevent the burner going ahead.

A cross-party meeting was held at the Shirehall on Thursday between Shropshire councillors, officers and Veolia officials.

Mr Kawczynski said: “I am concerned about the incinerator and what I have gleaned from the discussions is obviously there is going to be a financial penalty if the council pull out of it because it has signed a contract with Veolia for the incinerator.

“It is vital to know what the exact financial penalty would be that we would have to pay Veolia if we were to pull out of the incinerator contract.”

Councillor Keith Barrow, Shropshire Council leader, said the meeting had provided a “useful” discussion.

He said: “We also explained more about Veolia’s obligations under their contract with the council, and about the potential practical and financial implications to the council of making changes to the contract, including landfill tax and possible Landfill Allowance Trading Scheme penalties.”

Veolia’s application for the energy from waste facility will be considered in late 2009 or early 2010.