South Ayrshire Council blunders over mega money waste deal

Sep 30 2011 by Stuart Wilson, Ayrshire Post (main ed)

BLUNDERING council chiefs have blown a money-spinning recycling contract.

Bosses at South Ayrshire were set to seal a deal described as one of the council’s “best ever”.

But a legal cock-up has put the lucrative offer at risk.

The Post understands that Re-Gen, a firm from Northern Ireland, had won a new contract to recycle the council’s blue bin waste.

The deal would have seen it PAY the council more than £10 per tonne to take rubbish off its hands.

The company, based in Newry, use state-of-the-art techniques and recycle more than 120,000 tonnes of dry waste each year.

At the moment, the council shells out cash for every tonne of waste which is collected and removed for recycling.

But the new deal would have seen it profit by up to £250,000 per year.

A council source explained: “During the tendering process, Re-Gen asked if they could drop by with their vans to see if they fitted in our depots.

“It was a perfectly acceptable request and they were duly allowed to do so.

“But the council made a huge mistake by failing to offer rival bidders the same opportunity for their vans.

“It may sound silly, but if one of the bidders phoned up and offered the council a tub of ice cream then, legally, every bidder must be afforded the same chance.

“This would be farcical if it wasn’t so serious. The deal was probably one of the best ever for South Ayrshire Council.”

A rival firm, believed to be from Stirling, immediately lodged an appeal and accused the council of failing to offer a level playing field.

Red-faced South Ayrshire chiefs were then left with no option but to put the deal back out to tender.

The council source added: “I don’t know what will happen now because everyone knows what each other bid the last time for the contract.

“It’s like playing a game of poker and being able to see the hand of the guy sitting next to you.

“A basic error has been committed here and what should have been a great news story for the council has now turned into an embarrassment.”

The council was set to usher in the new contract from Saturday, with blue bins switching to collections every fortnight and black boxes being ditched.

But this plan has now been shelved while the lengthy re-tendering process takes place.

Jim McQuillan, the council’s head of property and neighbourhood services, said: “We’re committed to making recycling a convenient and easy option for all residents in South Ayrshire and ensuring as much of our household waste as possible is recycled.

“To help us achieve this, we are planning to increase the frequency of our blue bin collection and to increase the different types of waste that can go into the blue bins in the new year.

“As a result of a potential legal issue which was raised during the tender process, we have not yet appointed a contractor for our new scheme. However, we are in the process of progressing this matter and, in the meantime, our existing contractor will uplift our recyclate at no additional cost to the council.

“This will ensure we can focus on putting the new arrangements in place in line with our robust procurement procedures so that, from early next year, our residents can enjoy and participate in a greatly enhanced recycling scheme.”