Agenda item

Report of Director of Economic Growth and Neighbourhood Services

The Director of Economic Growth and Neighbourhood Services submitted a report (previously circulated) seeking Members’ views and feedback on the Tees Valley Joint Waste Management Contract prior to its consideration by Cabinet at its meeting on 5 November 2019.

The submitted report outlined the current position of the Tees Valley local authority waste contracts; Hartlepool, Stockton, Middlesbrough and Redcar and Cleveland operated a single contract by SUEZ whilst Darlington had a separate contract for municipal waste treatment and disposal; and that these contracts were due to expire in 2025.

It was reported that a joined procurement approach across the five Tees Valley authorities for the delivery of a residual waste management solution was approved by Cabinet in January 2019; the updated Joint Waste Management strategy was adopted by the Tees Valley Local Authorities in January 2019 and set out the future strategic aims and objectives of the Tees Valley councils.

An outline business case had been developed to address the future treatment of municipal residual waste; an Inter-Authority Agreement developed to deliver the procurement, setting out the terms of joint working arrangements, procurement milestones and appointed Hartlepool Borough Council as the lead authority; and a reference site with full planning consent would be offered to bidders to ensure there was adequate competition for the contract and to mitigate any perceived advantage of SUEZ.

Details were provided of the key dates and financial considerations; the Tees Valley Combined Authority would provide funding of up to £5m for the procurement process which would be repaid over a 25 year period; and that the financial commitment for Darlington would be £1m.

Following a question Committee was advised of the process for waste transportation out of the borough to the disposal facility and it was confirmed that costs of transportation would be equalised and included in the gate fee to ensure no local authority was penalised for their location.

Discussion ensued in respect of the implications of the expected change in Government policy to widen the definition of municipal waste; Members were advised that rates of waste disposal had slowed down in part due to improved recycling and less packaging, but will inevitably rise due to population increases; a key objective of the Tees Valley Joint Waste Management strategy was to increase recycling of household waste; and that Darlington were performing well, with recycling rates at 46% in Quarter one.

A Member in attendance at the meeting highlighted the requirement to reduce domestic and industrial refuse by one sixth by 2050 in order to meet government climate change targets; that this would likely result in reduced rates of refuse; and that the potential impacts on the waste contract should be considered as part of the procurement process.

RESOLVED – (a) That the report be received.

 (b) That Cabinet be:

i)     advised of this Scrutiny’s view that the procurement process should consider the implications of the Government climate change agenda and targets to reduce pollution from consumption, which if met, would result in a reduction in municipal waste;

ii)    advised that the adoption of the Outline Business Case, the proposal to enter into the Inter-Authority Agreement and the Terms of Reference for the Project Delivery Group, all as appended to the submitted report, be supported; and

iii)   requested to take into account this Scrutiny Committee’s views when considering the Tees Valley Joint Waste Management Contract report at its meeting on 5 November 2019.