Council told waste plant deal is ‘binding’

The 40 elected members of Limerick City and County Council were yesterday told a deal they struck with an American company for the lease of land in West Limerick for the construction of a huge waste disposal plant remains legally binding.

After a storm of criticism from residents in the Shanagolden area, the council sought legal advice on whether an agreement to allow a gasification plant be constructed on the site of a closed landfill at Gortadroma could be reversed.

However, the council was legally advised it cannot row back on the contract entered into with Cadence EnviroPower (CEP).

With the council now tied to the deal, it is believed the project will proceed to the planning stage.

The full council had approved a lease of the site to US-based CEP for five years.

CEP also has an option to enter into a 30-year lease in the event of planning being obtained for the gasification plant.

It is believed the lease is worth about €5m yearly to the council in rent and rates.

CEP said the plant will generate electricity for sale to power companies.

The landfill site at Gortadroma had opened in 1999 and closed last year. There was public outrage earlier this year when it emerged the council had entered into a leasing agreement.

The proposed €180m plant will, according to CEP, generate hundreds of jobs during construction and provide full-time work to about 150.

While the old landfill handled 3,000 tonnes of municipal waste every week, CEP’s proposal is to lorry in 1,000 tonnes a day, of which 45 tonnes would be made up of used tyres.

The move to revisit the lease agreement was initiated by the six council members for the Adare/Rathkeale Municipal area of the council. After a visit to a similar plant in France, they had approved the lease deal and recommended it to the full meeting of the council last June.

Several councillors had objected but the lease was agreed.

It later emerged the French plant was, in fact, closed the day the six Limerick councillors viewed the facility.

The lease decision sparked outrage in wide areas of West Limerick and up to 500 people attended a meeting last July in Shanagolden to express their anger.

Representatives of CEP attended the meeting and were told their plant was not wanted in the community and would be opposed in the planning process.

Councillor Richard O’Donoghue, proposing that the deal with CEP be reviewed, said the councillors for the Adare/Rathkeale area had decided on this action due to the level of concern the gasification plan had raised.

In recent months, he had asked the council executive to ascertain if there was any way open to the council to terminate the lease agreement made with CEP.

Limerick City and County chief executive Conn Murray undertook to seek legal advice.

Meanwhile, an action group Residents Against Gasification in our Environment (Rage) was set up to lead the fight against the proposed plan.

Its option now to halt the facility is through the planning process or An Bord Pleanála.