|Will the new Waste Strategy mean no more Brent scenes like this?|
The original plan to purchase 12 new waste vehicles at a cost of £1.7m, including interest charges, spread over 7 years (approximately £243,000 annually), has been ditched. Instead Veolia will hire vehicles for the remaining two and a half years of their contract, at a cost of £1.1m, to be paid for by an increase in their contract price. The annual cost will be £440,000, £197,000 more than buying and £493,000 more over the remaining two and a half years. The original plan left the Council with the vehicles when the contract expired but the new plan leaves them owning none.
Officers argue that they will save £600,000 in total costs in the long term (£1.7m versus £1.1m) and that hiring will 'relieve the Council of the burden of ownership (my emphasis) at the end of the current contract in 2014, which will improve our ability to go to the market for the replacement contract and seek competitive prices.' My reading of this is that this leaves Veolia holding all the cards at the end of the contract and puts them in a winning position for the new contract - after all Brent will have a waste strategy with no vehicles!
The other additional cost is in waste containers with wheeled bins replacing the current green boxes (I am still waiting to hear if they are going to be recycled). This is a table of the new purchases:
Read the document for yourself HERE