Independent TD says waste firms operating ‘cartel’

Bin charges are set to soar as the “cartel” of waste collection firms cashes in on new structural price changes, an Independent TD has claimed.

New “per-kilogram” collection fees on black and brown bins are to be introduced but concern has been raised regarding anticipated hikes in annual flat-rate service fees.

Last night the Competition and Consumer Protection Commission (CCPC) confirmed it had received 36 queries regarding the new system since the beginning of May.

“Given the number of operators in the sector and the wide variety of distinct charging structures and contractual arrangements, examination of the issues is a complex undertaking,” it said, adding that it was engaging with the Department of the Environment.

Minister for the Environment Simon Coveney is due to meet industry representatives next week to discuss the issues, a spokesman confirmed.

Waste collection companies have not yet released a full breakdown of new pricing structures but some details are beginning to emerge through notifications to individual customers.

Greyhound and Thorntons have come in for particular criticism. In the Dáil yesterday, Independents 4 Change TD Joan Collins said Greyhound is to increase its annual service charge from €59.95 to €169. Thorntons will rise from €50 to €104, she said.

Incensed

Ms Collins warned that consumers were “incensed about the increases in waste charges and they will react to them”.

“The Government argues that the new waste charging regime will result in greater competition,” Ms Collins said. “Waste disposal is a cartel in which there is no competition. Competition has meant increasing waste charges.”

Taoiseach Enda Kenny said her claim amounted to an accusation of criminal behaviour which would be subject to investigation by the CCPC. The issue of consumer choice has also moved to the centre of the debate.

Pay-by-weight is designed to increase recycling and reduce black bin use. Controversial Government plans for charges on green bin collections were recently dropped to bolster the environmental integrity of the policy.

However, concerns are now focused on annual and fixed charges which opponents want capped - believing companies will use the legislation as a cover for imposing universal increases.

The Department of the Environment said the open market allowed for companies to set their rates, meaning “competition among operators should ensure that collectors are competitively priced”.

The department said officials would monitor the newly implemented charges “very closely” but added that, with the range of charging mechanisms and contracts and different prices across the country, “it is not possible to track each and every charge”.

People Before Profit TD Brid Smith said the idea of choice is overplayed, with many areas “dominated” by one or two companies. Trucks will not go down a street to collect a small number of bins, she said.

Writing to customers

Greenstar said it was slightly delayed in releasing details of its prices due to the Government’s late decision not to introduce green bin charges. “We are currently writing to our customers and we also will be publishing our PBW [pay by weight] prices on our website in the coming days.”

Thorntons said it was currently notifying customers of its prices. These will be based on a weekly charge and a price per kilogram “so customers should review their charges based on both elements and not just the fixed charge”, a statement said. “The more people recycle, the less they will pay. We are confident that we will continue to provide a value for money service.”

Panda household collection manager John Dunne said it currently charged €86 annual service charge in Dún Laoghaire-Rathdown as well as a black bin charge of 27.7 cent per kilo and a lift charge of €3.20. The brown bin is 16 cent per kilo with a lift charge of €2.56. The green bin remains free.

This model will now be applied to the Fingal area, its only other area in Dublin. Prices for other collection areas including Drogheda, Louth, Meath and Kildare will be published soon.

Citybin and Greyhound could not be reached for comment.