Shropshire rubbish disposal costs up by £2m

Thursday 9th February 2012, 4:58PM GMT.

Shropshire rubbish disposal costs up by £2m

The cost of disposing of Shropshire’s rubbish rose by more than £2 million in the last financial year, it has been revealed.

Shropshire Council’s waste collection and disposal costs went up from £23.678 million in 2009/10 to £25.883m in 2010/11 – a rise of more than £2.2m, according to its statement of accounts. Officials say the cost for this financial year should stay within its £25.549m budget.

However, they admitted further rises were likely in the future ‘as some of the contract cost was linked to inflation’.

The responsibility for county waste disposal lies with Veolia which signed a 27-year Private Finance Initaitive contract in 2007.

Larry Wolfe, council waste services manager, said: “The waste budget is revised each year to adjust for pay and prices, population and tonnage growth and any expected savings. The figures reported in the accounts include both the waste management contract and waste management expenditure outside of the PFI contract.

“The historic increase in costs is due to a combination of pay and prices inflation, landfill costs increases – mostly landfill tax, growth for non-achievable landfill allowance trading scheme income and is offset by savings implemented for the service.”

Robin Hooper, former chief executive of Shrewsbury and Atcham Borough Council, said: “If inflation continues to be high – and frankly it is in government interests in part for it to remain high as it devalues the national debt – then any contract linked to inflation means more money has to be paid.

“The answer is to carry out a fundamental professional and competent appraisal of the contract, not just for waste, but for the others the council has as well and to renegotiate . . .”


  1. 1
    driver

    Landfill tax and costs ?
    Well let’s get the burner built. That will reduce this tax and produce electricity.
    If our MP has nothing better to do than lay in the road, then it is time he was removed

    Report abuse

  2. 2
    Shlomo

    What an amazing phrase: “…growth for non-achievable landfill allowance trading scheme income…” – translated it means: ” We planned to pay for Veolia’s incinerator by making money selling landfill allowance trading scheme (LATS) credits, and now these are worth nothing – so we will not be seeing any income from selling LATS, hence the increase in costs…”

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  3. 3
    keith Kondakor

    This story is based on misleading information from the council. The cost of waste collection, recycling and disposal was £20.186m (as page 84 of statement of accounts). The budget was £25.88m – most of the difference was put into the PFI waste reserve which now holds £19m. This is money saved to smouth out the big hike in cost if the incinerator is built

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  4. 4
    GB

    “The historic increase in costs is due to a combination of pay and prices inflation, landfill costs increases – mostly landfill tax”

    Maybe the council should introduced kerb-side cardboard recycling to reduce landfill?

    Report abuse

  5. 5
    sick of being ripped off

    how about stopping useless junk mail nobody even reads.
    how about companies not put tiny products in huge wasteful packaging.
    how about companies make products built to last more than 12 months.
    how about cutting down on the advertising enticing people to always buy the latest model of products they don’t even need.
    how about encouraging people to use waste & compost it.
    how about enouraging people to give others their old items they don’t need & people not be so proud to not want someone elses old stuff.

    nope,let’s just keep hiking prices & complain about land fill costs.

    Report abuse



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