CORK COUNTY Council has sold its waste-collection business to a private company after being faced with an “unsustainable financial position” arising out of falling customer numbers coupled with rising costs associated with a new EU landfill directive on the pretreatment of waste.
Cork County Council has announced that it has reached an agreement with Country Clean Recycling Ltd for the purchase of its waste-collection business. The agreement was reached following a competitive process involving a number of waste management companies operating in the private sector.
It is understood the introduction of a VAT charge of 13.5 per cent also led to increased difficulties for the county council.
Following confirmation from council management that negotiations had been concluded, mayor of Co Cork Jim Daly spoke of the lack of surprise among elected members at the news.
“Members have been expecting an announcement on this issue for some weeks now,” Mr Daly said.
“I am particularly pleased with the outcome of the deal which has ensured continuity of the waiver scheme for the next two years and also provides a guarantee of service to the more rural parts of the county.”
The mayor also welcomed the financial boost to the council. “This deal is worth up to €10 million for Cork County Council over the next 12 months when you factor in the projected losses the service would have incurred in the next fiscal year, losses which have been greatly added to by the introduction of VAT on refuse service since July 2010.”
In conclusion, the mayor expressed his gratitude to the staff of Cork County Council who had built up the service and noted in particular the contribution of the frontline staff who provided a courteous and professional service to their customers.