Council sells waste disposal business

CORK County Council has announced plans to sell its waste collection service to a private firm after it was faced with an “unsustainable financial position”, but has confirmed that no staff will lose their jobs as a result of the move.

In a statement the local authority said it decided to agree to the deal due to falling customer numbers, rising costs linked to a new EU landfill directive on the pre-treatment of waste and the introduction of a 13.5% VAT charge.

From today, Cork-based firm Country Clean Recycling will begin to take charge of the county’s waste collection business.

The firm, which won the right to the contract after a competitive negotiation process with other companies, has agreed to cut home bin collection bills by 10% for local authority customers being transferred to them as part of the deal.

In addition, all local authority staff who were previously working in the sector will be re-assigned within Cork County Council.

Speaking following confirmation that negotiations had been concluded, Cork County Mayor Jim Daly said elected members were not taken by surprise at the news.

“Members have been expecting an announcement on this issue for some weeks now,” he said.

“I am particularly pleased with the outcome of the deal which has ensured continuity of the waiver scheme for the next two years and also provides a guarantee of service to the more rural parts of the county.” he said.

“This deal is worth up to €10 million for Cork County Council over the next 12 months when you factor in the projected losses the service would have incurred in the next fiscal year.”

The announcement comes at a time when local authorities across the country have been pulling out of waste disposal management in increasing numbers.

In May, Dún Laoghaire/Rathdown County Council in Dublin decided to discontinue its collection service because of “unsustainable losses”.

Only 18,500 customers were availing of its service at the time of the announcement, the local authority said, representing a drop of more than 46,000 in just four years.

Other local authorities have also raised concerns over the increased pressure on them from private companies offering waste collection services at more competitive prices.