Decision details

The Waste and Recycling Manager presented the report  explained that the contract for processing mixed dry recyclables collected by Councils in Norfolk was delivered by a joint venture company contract with Norse Environmental Waste Services Ltd (NEWS). This arrangement was for all seven Waste Collection Authorities in Norfolk (ie the District, City and Borough Councils) and the County Council in its role as a Waste Disposal Authority.

The contract expired on 30 September 2024. The parties to the contract had been in discussions regarding an extension to 2027, subject to various changes in the contract. A decision was taken by Cabinet on this matter on 10 August 2022. Since that time, there have been developments which materially affect the risk profile previously reported to Cabinet. The report set out those changes so that Cabinet may consider whether the increased risk was accepted.   

Under standing order 34 Councillor Joyce questioned the company which would be involved, and whether the amount was guaranteed.  It was clarified which company was involved and confirmed that the increase in income was guaranteed as set out in the report.

The comments of the Environment and Community Panel were noted.

RESOLVED:1)         That the proposal of extending the MRF contract to 30^th September 2027 be approved.

2)            That Changing the “gate fee” under the MRF contract from fixed to variable as set out at section 4 of this report, to apply from 1^st October 2021 be approved.

3)            That as joint shareholder of Norse Environmental Waste Services Ltd (NEWS) it be agreed that changes to the Shareholder Agreement and MRF Contract be made to ensure the continued provision of the processing of collected dry recyclables up to 30^th September 2027, such agreement to incorporate consequential drafting changes.

4)            That delegated authority be granted to the Chief Executive and Monitoring Officer in consultation with the Leader and the Portfolio Holder for the Environment to conclude negotiations with the relevant parties and complete the necessary documentation to bring Resolutions 1-3 into effect.

Reason for Decision

Whilst noting the changes in risk, an extension of the contract on the proposed terms does still represent the most viable option, as it will allow the service of sorting collected dry recyclables to be secured in the longer term and provide stability of arrangements during a period where national waste policy and legislation on waste is expected to lead to changes on the volume and composition of waste collected by Councils.