The Highland Council. Transport, Environmental and Community Services Committee 18 November 2010
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1 The Highland Council Transport, Environmental and Community Services Committee 18 November 2010 Agenda Item Report No 10 TEC/98/10 Charges for the Collection and Disposal of Commercial Waste and the Hire of Waste Skips - Report by Director of Transport, Environmental and Community Services Summary This report invites Members to approve the revised charges for the collection and disposal of commercial and industrial wastes which will apply from 1 April 2011, and to note the integration of a recycling service to commercial customers. 1. Background 1.1 Councils are required, in terms of the Environmental Protection Act 1990, to apply reasonable charges for the collection and disposal of commercial and industrial wastes. Charges need to achieve full cost recovery, otherwise the Council would be subsidising the collection and disposal of commercial and industrial wastes. 1.2 Members will recall the approved timetable for the roll-out of alternate weekly collections across Highland. Throughout the Council area, commercial waste is collected as mixed municipal waste along with the household waste collections. To accommodate alternate weekly collections it is therefore necessary to adjust the service provision to commercial customers. 1.3 Councils have a duty, in terms of the Environmental Protection Act, to collect commercial waste from premises if requested to do so. 2. Proposed Charges for 2.1 The charge for the collection and disposal of commercial and industrial waste is made up from three costs elements, these are: 1. Waste Collection 2. Waste Disposal 3. Landfill Tax 2.2 It is proposed that the waste collection and waste disposal elements are increased by RPI to meet the increased operational costs (predominately fuel costs in respect of the collection service operational costs in respect of the waste disposal element of the charges). Disposal charges will increase from per tonne to per tonne.
2 2.3 The landfill tax escalator introduced by the Government several years ago to encourage recycling and diversion from landfill imposes an increase of an additional 8 per tonne in landfill tax charges. The landfill for will be increased to 56 tonne. 2.4 The table below shows the proposed charges for. Members will note the cost of uplifting a recycling bin is less than the cost of uplifting the residual bins as landfill tax is not applicable to the collection of recyclable material. For commercial customers in premises which produce waste defined as Household waste in terms of Schedule 2 of the Controlled Waste Regulations 1992 (made under the Environmental Protection Act 1990), recycling collections do not incur disposal charges. For the avoidance of doubt no collection or disposal charges are applied to domestic households. Container size Commercial Residual waste charge Household Residual waste charge Commercial Recycling charge Household Recycling charge Sack /140 litre bin 240 litre bin /360 litre bin 660 litre bin litre bin Notes: 1. VAT is NOT included in any of the above charges. 2. Certain container sizes may be unavailable in some areas. 3. The Environmental Protection Act defines Household waste as including waste from the under noted premises. A disposal charge element therefore does not apply to waste from these premises. a. Residential Hostels and Homes b. Self catering holiday businesses (eg chalets, caravans, campsites) c. Charity occupied premises wholly or mainly used for charitable purposes 4. Landfill tax charges do not apply to the recycling collections
3 3. Commercial Collection Service Level 3.1 If Members agree to change the Commercial Collection Policy, businesses using the Council s Commercial Waste Collection Service will be required to participate in recycling as a pre-requisite to receiving a commercial collection service. A fortnightly recycling collection service will be provided for segregated recyclates (currently cans, paper, cardboard and plastic bottles) or the customer must have a recycling permit and not present any of the prescribed recyclable waste for collection in their residual bins. 3.2 Businesses requesting the Council s service will be provided with a minimum collection of an alternate weekly residual and recycling collection service i.e. one week residual waste will be uplifted, and the following week dry recyclate will be collected, and so on. In areas where resource permits, a more frequent residual collection may be provided. 3.3 The commercial recycling service will coincide with the programme for the rollout of the alternate weekly collections, as set out below: Lochaber April 2011 Caithness April 2011 Nairn and B&S July 2011 R&C October 2011 Inverness January 2012 Sutherland April Equality of Service Implications 4.1 The objective of the Council s commercial collection service is to meet needs of the business where ever possible and at the same time increase the recycling rate. Unavoidably the level of service offered to businesses across the Highland area will vary according to operational practicality and resource within the areas. 4.2 The commercial businesses in the more remote and rural areas may only receive a residual and recyclate collection on an alternate weekly basis and will unavoidably require to provide additional bin capacity to meet that level of service. It is the businesses responsibility to purchase any additional bins. 5. Separate Collection of Cardboard for Recycling 5.1 As in previous years, it is proposed to continue to offer a separate collection of cardboard to businesses in Inverness and Nairn, This service will be reviewed after the new recycling service becomes established. No increase to the charge will be applied to this service in.
4 2010/11 Major Producer Large Producer Medium Producer Small Producer Note: all of the above charges are subject to VAT. 6. Hire Charges for Waste Skips 6.1 It is proposed to increase these costs in line with the increased refuse collection charges and the increased landfill tax liability. The Charges are as detailed below. Element of Charge 2010/11 Landfill Tax 48 / tonne 56 / tonne Disposal Costs - sites with a weighbridge Disposal Costs - sites with no weighbridge Delivery/Uplift Daily Hire Notes 7. Implications 1. All of the above charges are subject to VAT. 2. Costs at sites with no weighbridge are based on the volume to weight conversion factors approved and published by HM Revenue and Customs and implemented by the Council. 7.1 The proposed increase in disposal and collection charges will allow full cost recovery from commercial customers. 7.2 There are no legal implications arising from this report. 7.3 There are no equality implications arising from this report. 7.4 The compulsory recycling of commercial waste will help divert more waste from landfill, improve recycling rates and reduce the carbon implications of landfill. 7.5 Members will recall the risk implications associated with the roll out of the alternate weekly collections. The introduction of the new service may lead to loss of business customers in those areas where there is an alternative service provider and consequently the loss of commercial income.
5 8. Recommendations 8.1 Members are invited to approve the revised charges for the collection and disposal of commercial and industrial wastes and the hire of waste skips which will apply from 01 April Members are invited to note the integration of a commercial recycling service and the subsequent changes to the service levels. Signature: Designation: Director of Transport, Environmental and Community Services Date: 5 November 2010 Background Papers: Revised Charges for the Collection and Disposal of Commercial Waste and the Hire of Waste Skips TECS 21 January 2010 TEC Rollout of Alternate Weekly Collections - TECS 23 September 2010 TEC-78-10
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