Credit crunch hits recycling

TOWN Hall chiefs at Warrington are being advised to hold back from awarding a long term contract for sorting and recycling waste – because of a collapse in the value of recycled materials caused by the credit crunch.
Instead, they are being asked to authorise officers to continue with local agreements to ensure continuity of service until market conditions improve.
Resources have been earmarked within existing budgets to pay for the work.
But members of the council’s executive board have been warned there is a major risk that if the market does not improve, costs may increase.
Head of service Paula Darlington has carried out a tendering exercise for the provision of a bulking point and associated material recovery facility for a period of four years.
But only one tender was submitted – and she is recommending no long term contract be awarded.
A short term contract had already commenced – but as a result of the collapse in the value of recyclable materials it was abandoned. Instead, a local contractor has been engaged to provide a service on payment of a “gate fee” for the sorting, baling and sale of materials.
However, there is a risk of the gate fee being increased so officers want to continue to monitor market conditions to make sure the council gets the best possible deal.
Ms Darlington said it was important the council continue to build on the public’s excellent response to the “blue bin” kerbside collection scheme and maintain the service.
The amount of material being collected and recycled was some 30 per cent higher than originally predicted, indicating the public’s acceptance of the scheme, she said.
Some councils are reported to be sending recyclable materials to landfill as a result of the collapse in the market, but at the last meeting of the borough council, Coun Alan Litton, executive member for Environment Services, gave an assurance that Warrington would not be sending recycled materials to landfill.