£30m bill to halt incinerator plan
TAXPAYERS in Cornwall face a crippling £30 million bill if plans for a controversial waste incinerator are abandoned, writes WMN chief reporter Andy Greenwood.
The former Cornwall County Council rejected plans, from its own waste contractor, for a £117 million energy-from-waste plant at St Dennis, Mid-Cornwall, in March this year.
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French-owned Sita UK, which was awarded a 30-year, £427 million waste management contract by the county council in 2006, has now appealed against that decision and a planning inquiry is due in March next year.
It has now emerged that the new Cornwall Council is entitled to cancel the contract because work to start building the incinerator will miss a deadline set for next March.
Depending on the outcome of the planning inquiry, councillors face choosing between the massively unpopular incinerator, which opponents fear will have major health implications, and a bill which could have damaging consequences for other frontline services in a climate of financial hardship for the public sector.
Then there is the threat of further multi-million pound fines for continuing to landfill huge amounts of rubbish and the dwindling capacity in the county's landfill sites. Coun Julian German, who holds the waste and environment portfolio on the council, said there would be "ramifications" for frontline services if they abandoned the current contract.
"It is a reality check," he said last night. "This is the situation we are in, we do want to look at what the possible alternatives are and we have to go through what the financial and environmental implications are.
"We recognise that we are in a difficult position."
The incinerator, with a proposed 390ft chimney, would process 240,000 tonnes of waste a year. It would be capable of handling all Cornwall's domestic waste and converting it into electricity and heat to power 21,000 homes.
Campaigners fear it will blight the local community for more than a generation and want other measures, including greater recycling and cleaner technological solutions, introduced.
Pat Blanchard, chairman of the St Dennis Anti Incinerator Group (STIG), said: "A mass burn incinerator in the heart of Cornwall is not just unsustainable it is downright immoral.
"£30 million may be a small price to pay to ensure that we get the best way to deal with Cornwall's waste."
The council released details of the compensation clause in a comprehensive statement which, it claimed, was released "in a spirit of openness".
Terminating Sita's contract would result in a compensation payment for all the facilities, such as recycling centres, it has provided so far. The bill is estimated at £30 million.
The current contract does allow for a smaller incinerator to be built and an anaerobic digestion facility added. However, any alternative scheme involving a different technology or location outside central Cornwall would also break the current contract.
It would also trigger a new tendering process, resulting in substantial delays.
The three councillors from the china clay area, Dick Cole, Fred Greenslade and John Wood, are currently helping STIG to prepare their case for the planning inquiry.
"It remains our view that the proposal for an incinerator at St Dennis is unsustainable," they said.
"We are working hard to make sure that Sita's appeal does not succeed and to persuade the council to find a better way to deal with Cornwall's waste.
"It is our intention to do everything in our power to make sure that Cornwall Council's cabinet fully considers the option to terminate the contract."
Sita confirmed that it had recently written to the council stating that it would be unable to achieve the "long-stop date" to build the incinerator because of the forthcoming inquiry.
The council's Cabinet now needs to decide whether to terminate the contract or ask for a revised project plan.
A spokesman for the company said it was currently waiting for "feedback" from the council.
21 Comments
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by Mike Burns, Redruth
Wednesday, November 18 2009, 12:02AM
“Why is it, when something is announced, we always get a reaction. Be it mobile masks , wind mills, now their is uproar about incinerator . How else are we going to get rid of the rubbish?? If they move to a wooded area, then their would be protest about that. Why can`t people realise that, its done for a reason. What you think that it`s going to effect your life? How. STOP MOANING and get on with your lives.”
by Roy, Redruth
Tuesday, November 17 2009, 7:51PM
“Obviously waste needs to be dealt with ,I think everyone should be responsible for their own waste. perhaps smaller incinerators .This is problem we are leaving not just for our grandchildren but great great grandchildren and beyond.
What ever the out come time is running out or run out. For once put the world first after all we all live there and I don't see space ships leaving for the next abital plant many light years away.”
by lynn sims, St Dennis
Tuesday, November 17 2009, 7:20PM
“The blame for this cannot and should not lie at the foot of people who have and continue to object to the plans to build an incineratior, and by the way this is not an imotive use of langauge it's what it is!
The blame lays with the councillors who voted for this contract in the first place. Those who are voted in have a moral obligation to ensure that they have looked fully at all the information something which they failed to do in this case instead they listened to the those who worked for Sita.
Lets remember too its not the first time that tax payers have had to stump up their hard earned cash due to the incompetence of councillors - remember the fiasco in Roche?
So much of the contract between Sita and Cornwall County Council was deemed to be commerically senstive and therefore many of the finanical implications of the contract were not revealed. Who were they trying to protect here not the tax payers of the county thats for sure!
Of course not every one will agree with Stig but I for one am pleased that they have the right to voice their objections.
I find that when people have no real argument they resort to being personal.
People also need to understand that all those who have protested to the incinerator live in St Dennis they have had support from all over the county also not all of St Dennis objects to the plant!”
by Keith, Redruth
Tuesday, November 17 2009, 4:57PM
“Jersey,Isle of Man & countless other sites don't have a problem with waste to energy.
Stop wasting tax payers money build it at St Dennis or Roche next to the A30.Remember councilors who voted you in & who could vote you out.”
by Martin, St Dennis
Tuesday, November 17 2009, 4:31PM
“In responce to some of the remarks on here, yes we do have the clay industry, yes we do have a gas power plant, yes we do have the clay dries which is belching out all types of toxic gases.
I personally think the area has enough to cope with dont you?
I dont really think you can
blame St Dennis for the 30 million bill that will require picking up by the tax payer, that has to remain the fault of the council who awarded the contract before all the details had been looked at properly.”
by Steve, PZ
Tuesday, November 17 2009, 3:52PM
“Wow, A thirty million pound mistake. I bet the person who signed up to that on behalf of the tax payer is glad he works for the public sector. If that was a private firm his career would be over.”
by Lan ar wras, Penwrangle
Tuesday, November 17 2009, 2:51PM
“they went along with the groundwork for the thing and then backed out at the last minute without an alternative site - stands to reason they'd have to pay for the work done to date !
so instead of paying £113 M for a waste to energy plant we pay £30M for nowt !!”
by max power, st austell
Tuesday, November 17 2009, 1:48PM
“Incineration is such a good idea but not in St Dennis. They've suffered generations of lung disease through industry and climate, it's time for a change. Site them in St Mawes, Newlyn etc. then stand back and see how popular anaerobic digestion becomes.”
by Becky, Truro
Tuesday, November 17 2009, 1:35PM
“Preserve Cornwall's natural beauty!!! I am a student in conservation and there are many other ways to dispose of waste!
Better recycling facilities are needed and more renewable energy systems would be money better spent!”
by Beau, Truro
Tuesday, November 17 2009, 1:31PM
“John - sounds like you're the person who signed or at least would've signed the contract, without thinking through the ramnifications of your actions.
Yes I was around but certainly don't remember the public approving to sign a multi million pound penalty claused contract that didn't even had planning.
Duh...
This is crass negligence.
As for the holiday makers I'm sure they'd appreciate a clean recylcing/eco Cornwall, rather than be staring at a dirty chimney.
There are other alternatives.”