Incinerators 6: FOI reveals the surprising truth about the Javelin Park incinerator contract

News of the long campaign against the proposed Javelin Park incinerator was read by many visitors to this site in 2013 and 2015.

This year, campaigners obtained a copy of the contract, after using freedom of Information rules, and the monitoring officer at Gloucestershire County Council has now been asked to investigate whether the leader and his deputy exaggerated the cost of backing out of a plan to commission a £500m waste incinerator.

A resident of the county was contacted and replied that she had read about the discovery in the Gloucester Citizen, which republished an account from Gloucestershire Live, but neither account may now be found online. A search reveals no mainstream media reference to the subject.

Public Sector Blogs drew on an account by Tim Davies, co-founder of Open Data Services Co-operative, co-director of Practical Participation, affiliate at the Harvard Berkman Center for Internet and Society:

“The claim made to council on 18th Feb 2015 that it could cost £60m – £100m to cancel the contract appears to be based on calculations from officers, and/or Ernst and Young which have not been published by the authority (perhaps another EIR or FOIA request will be needed here…). The Tribunal ruling refers in Paragraph 27 to a document from Ernst and Young presented to Cabinet in November 2015. However campaigners reading the unredacted contract cannot find the substantiation for the cancellation costs being so high before the facility is operational. It appears breakage before the plant is in operation could cost substantially less than the break-points once it is up and running – and possibly even lower than the £30m the Council has subsequently committed from reserves to cover shortfalls in the project”.

Community R4C, a community-led project promoting a circular economy in Gloucestershire, which published local media accounts of the recent discovery here, has now gone to the council’s external auditor, Grant Thornton. With the help of the Environmental Law Foundation, a case has been put together which, it believes, shows the Urbaser Balfour Beatty (UBB) contract is not value-for-money. It has also approached the Competition and Markets Authority, claiming that Gloucestershire’s contract breaks competition law.

A contributor to Private Eye magazine reports that environmental law expert Raymond Purdy, a senior fellow at Oxford University, has complained about the way Gloucestershire council leader Mark Hawthorne and deputy Ray Theodoulou presented financial details to a crucial meeting. As Tim Davies noted above, it was claimed that to opt out of the contract already signed with UBB would potentially cost £100m.

ELF elaborates: “The contract, originally signed in 2013 and then renegotiated in 2015, for the £500 million incinerator was awarded to Urbaser Balfour Beatty although details on pricing and information on termination were only made public following an Information Tribunal ruling in March this year (2017). In light of this information, and after seeking assistance from Counsel through ELF member, Duncan Sinclair of 39 Essex Chambers, R4C lodged a complaint with the CMA on 21st March that the Javelin Park contract breaches the Competition Act 1998. R4C believe that the exclusive contract is anti-competitive and prevents technological innovation, imposing a huge financial burden for years to come. They state that:

  • the price paid by GCC for waste disposal for a minimum amount is 10 times the next tranche, thereby creating ‘de facto’ exclusivity and foreclosing the market for waste treatment (including eliminating incentives to recycle/move higher up the waste hierarchy);
  • there are excessive termination costs thereby enforcing the ‘lock-in’; and
  • the 25-year contract prevents newer, cheaper and more efficient/environmentally friendly alternatives developing to the detriment of consumers in terms of not only price but also their interest in the environment (both local and more broadly).

If the complaint is upheld there would be serious consequences for Gloucestershire County Council and the residents they are elected to represent.

 

 

 

 

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Posted on May 18, 2017, in Democracy undermined, Environment, Finance, Planning, Public relations, Vested interests and tagged , , , , . Bookmark the permalink. Leave a comment.

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