Decision details

North London Waste Authority

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decisions:

The Chairman welcomed the Cabinet Member for Environment (Councillor Dean Cohen), the Strategic Director for Growth and Environment (Pam Wharfe), the Housing and Environment Lead Commissioner (Declan Hoare) and the Acting Waste Strategy Manager (Michael Lai) for the item. 

 

Finance

 

The Acting Waste Strategy Manager advised the Committee that the North London Waste Authority (NLAW) levy for 2013/14 was £2.146 million or 11.5% higher than in 2012/13.  £1.079 million of the increase was attributable to the Council’s decision to consign its co-mingled dry recyclates to the NLWA from October 2013 rather than make its own arrangements for treatment.  It was expected that the increase of £1.079 million would be offset by an estimated income of £1.028 million for 2013/14 and 2014/15 as a consequence of Barnet qualifying for payments that will be made by the NLWA under its Commingled Income Payment Scheme.

 

The Committee were informed that the Council were currently benchmarking the cost of their waste streams against other council’s costs.  It was reported that the Landfill Tax was due to rise next year.

 

Procurement – Waste Services Contract and Fuel Use Contract

 

The Acting Waste Strategy Manager updated the Committee on the NLWA procurement for two activities: Waste Services Contract (treatment of waste for disposal, recycling and composting); and Fuel Use Contract (fuel produced through the treatment of waste).  It was reported that the two procurement processes had been halted in September 2013 due to the pressure on local authority funding, changes in the projected lifespan of the existing Edmonton Energy from Waste facility, and changes in the planning environment.  The NLWA were working with the constituent boroughs on developing an alternative waste strategy based on using the existing Edmonton Energy from Waste facility up to 2025 and replacing it with a new facility.  It was reported that potential savings of up to £900 million could be achieved against the procurement options previously explored. 

 

Inter Authority Agreement

 

In relation to the Inter Authority Agreement, the Committee were advised that the previous draft agreement was in the process of being redrafted.  The NLWA constituent boroughs appear to be supportive of the introduction of menu pricing which would be reflective of the actual cost of treating the different types of waste streams. 

 

The Committee noted that the NLWA policy on the provision of Household Waste Recycling Centres (HWRCs) in the North London area made a case for the provision of an additional two HWRCs in Barnet.  Additional facilities would increase Barnet’s recycling rate but it is likely that the costs would be largely borne by Barnet.

 

North London Waste Plan

 

Referring to the North London Waste Plan, the Acting Waste Strategy Manager advised the Committee that this was a planning document which set out polices for determining planning applications for waste facilities and future site requirements for waste management use in the area to meet London Plan requirements.  In relation to the Pinkham Way site, the Committee were informed that part of the site had previously been purchased from the Council by the NLWA for use as a waste facility site. The other part of the site remains in Council ownership.  A planning application submitted in May 2011 which proposed the use of the site for NLWA waste management facilities and a Barnet Council depot was withdrawn in April 2013 due to changes in the NLWA procurement process.  Options for the site were currently being explored. 

 

 

A Member identified that government guidance in June 2013 had indicated that co-mingled waste collections would not be permissible from January 2015 and that the Council’s had recently introduced co-mingled collections as part of the new waste collection arrangements.  The Acting Waste Strategy Manager advised that the Revised EU Waste Framework Directive provided that separated waste collections would be the default position where they were necessary to provide high quality materials, and where they were technically, environmentally and economically practicable.  It was the Council’s position that co-mingled collections had increased recycling, that the quality of waste streams at the Biffa site in Edmonton was being monitored, and that the council would pass any tests in relation to the technical, environmental and economic reasons why a separated collection is not viable in Barnet. 

 

The Committee highlighted that the NLWA had procured the Pinkham Way site from the Council for £12.5 million and then had found no use for the site.  It was questioned who was accountable for this decision.  The Strategic Director for Growth and Environment advised the Committee that the NLWA was made up of Member representatives from the constituent boroughs and that changing circumstances with the NLWA had caught up with the procurement processes.  It was reported that Enfield’s position had changed substantially and they were now more supportive of an energy from waste plant.

 

A Member referred to the Memorandum of Understanding on NLWA procurement signed in August 2008 and questioned whether this had covered site selection and transport requirements.  The Acting Waste Strategy Manager reported that the NLWA had looked across the seven boroughs and wider as part of the procurement process.  It was noted that there was no current active list of potential waste disposal sites.

 

Responding to a question from the Committee, the Strategic Director for Growth and Environment reported that there were limited options for additional HWRC sites in the borough. 

 

The Committee noted that NLWA levy costs were based on figures from two years ago rather than being a reflection of the current price for the various waste streams.  It was questioned whether the prices should be adjusted in-year or live to reflect the actual cost of processing.  A move to menu pricing could include in-year charging.

 

A Member questioned whether there were issues with plastic bags being included in co-mingled waste and questioned whether the Council could offer plastic bag recycling as an option to residents.  Officers reported that some of the plastic bags included in the co-mingled waste stream might be recycled (granulation), but the offer of a dedicated plastic bag recycling service would need an outlet to be commissioned via the NLWA.  It was noted that the current policy was to encourage residents to recycle plastic bags via existing outlets such as supermarkets.

 

A Member requested a breakdown of the value of the co-mingled waste stream.  Officers reported that income would be affected by the quantities of the different materials (e.g. volumes of paper, plastics, tins etc).  However, values were expected to be in the region of £25 per tonne.   The Cabinet Member for Environment confirmed that the income from the co-mingled waste collections would not be lower than for separated collections. 

 

RESOLVED that:

 

1.         The Committee note the update on the North London Waste Authority as set out in the report.

 

2.         The Cabinet Member for Environment be requested to liaise with the North London Waste Authority regarding:

i)               the identification of additional sites for Household Waste Recycling Centres in Barnet to increase recycling rates; and

ii)         potential options for developing a plastic bag recycling scheme.

 

3.         The Cabinet Member for Environment refer to the North London Waste Authority the concerns of the Committee regarding the £12.5 million procurement of the Pinkham Way site which failed to result in the delivery of a new waste facility site.

 

Report author: Lynn Bishop, Michael Lai

Publication date: 14/04/2014

Date of decision: 11/03/2014

Decided at meeting: 11/03/2014 - Business Management Overview and Scrutiny Committee

Accompanying Documents: