Executive Committee 12 March 2013 Discretionary, non-domestic waste collection charges

Transcription

1 Executive Committee 12 March 2013 Discretionary, non-domestic waste collection charges For Decision Member Champion(s): Cllr A Thacker, Community Safety & Access - Director: K Hindson, Director of Communities 1. Purpose of Report 1.1 To consider effect of the DWP waste charging policy for non-domestic household waste collections from charity shops from April To consider transitional grant arrangements to support: a. Charity shops that attract a new charge b. Charitable organisations that have been reclassified as commercial waste under the Controlled Waste Regulations Officer Recommendations 2.1 Formally adopt the DWP waste charging policy for all outlined sectors in this report and deduct the value of discretionary collection fees from the budget transferring to DWP. 2.2 Consider transitional grant for charity shops that attract additional waste collection and disposal costs under the DWP charging policy. 2.3 Consider transitional grant for charitable organisations that have been reclassified as commercial waste but were previously household waste where charging was discretionary. 3. Reasons for Recommendation 3.1 Charging directly for waste collections incentivises waste minimisation and aligns with Dorset Waste Partnership (DWP) Policy. Waste minimisation could also be incentivised by way of a targeted transitional grant 3.2 In supporting the DWP policy a consistent, formal framework for charging across the DWP operational areas will be in place. 1

2 3.3 Collection charge overheads retained by WDDC could be used support charity shops and/or charitable organisations by means of a transitional grant. 3.4 Collection charge overheads costs retained by WDDC would be fully covered by direct charging by DWP from April Background Information 4.1 WDDC is the Waste Collection Authority has a duty to collect household waste and no charge shall be made for the collection of household waste except in cases prescribed in regulations made by the Secretary of State. A charging structure for certain types of Household Waste is outlined in the Controlled Waste Regulations. Domestic household Waste is completely non chargeable. 4.2 Chargeable waste collections are made up of 2 elements: a. Collection charge A reasonable charge to cover overheads involved in collection and provision of such a service. b. Disposal charge Set by DCC as the Waste Disposal Authority, this charge is added to collection charge where applicable and the monies paid for this element are passed to DCC to pay the actual per tonne disposal costs of that waste incurred by landfill site operators or gate fees for recycling facilities. 4.3 The Controlled Waste (England and Wales) Regulations 2012 came into force on 6th April 2012 and replaced the previous Controlled Waste Regulations Dorset Waste Partnership Joint Committee Meeting of 26 July 2012 agreed and report attached at Appendix 1 that a DWP policy be accepted 4.5 As WDDC moves into the Dorset Waste Partnership in April 2013 it is important that a single consistent policy is adopted across Dorset. 4.6 Where an organisation has its waste classified as Household waste for which a collection charge may be applied there is potential for discrepancy between current and historical charging practices of the District and those outlined by the DWP charging policy. 5. Report 5.1 DWP adopted a policy on collection and disposal charges that has been influenced by the changes to the Controlled Waste (England and Wales) Regulations 2012 came into force on 6th April

3 5.2 The new regulations make a number of changes to the classifications of waste from some premises. They also enable local authorities to charge for the collection and disposal of waste from a wider range of premises. Certain exemptions have been made to reduce the burden of the regulations on small businesses and publicly funded educational establishments. 5.3 Many of the changes to the Controlled Waste Regulations impact on the disposal cost element which falls under the control of the Waste Disposal Authority (WDA), Dorset County Council. Where disposal fees are levied by the WDA they are added to the collection charges are passed on to the customer. 5.4 Charity Shops Previously Classified as household waste, but now classified as Household waste for which a collection charge may be applied (Note that a Commercial Classification now applies to the element of the business waste generated by virtue of running a business, but not related to the incoming/outgoing furniture/ bric-a-brac input by local residents). WDDC currently has 23 organisations receiving free collections at 35 sites. 5.5 Transitional Grant Option A - WDDC could continue to support Charity Shops that will be subject to charges for collection where historically they have received free collections. This would be approximately 21,300 and an estimated additional 10% if the commercial waste element is to be supported also. 5.6 Transitional Grant Option B - WDDC could continue to support charitable organisations (Not charity shops) were reclassified from Household Waste to Commercial Waste by the Controlled Waste Regulations 2012 and as such will be charged standard commercial rates from April Commercial charges for this sector as a whole will be approximately 3,400. WDDC has 6 organisations currently receiving free collections at 7 sites. 5.8 A transitional grant would continue the charity sector advantage over small local shopkeepers they are competing with for business, although the market overlap may be small. 6. Financial Implications 6.1 The approximate value of these discretionary collection fees is 21, To support charity shops with a transitional grant payment to cover the full amount chargeable by DWP would cost 21,300 approximately. 6.3 Should the Council wish to further support charity shops, an additional, estimated 10% charge for disposal of the commercial element would need to be considered to cover all new waste charges. 3

4 DWP charges may increase in future years which would have an impact if WDDC seek to continue covering the full costs of the collection charges. Any significant reduction in the transferring budget is likely to mean that the DWP will require the cost sharing percentages to be adjusted. With such small figures this is not anticipated to have any substantial impact on the Councils contribution to the DWP. 6.3 To provide a transitional grant (Option B) for charitable organisations would require a new funding source to the value of approximately 3, If supporting through transitional grant, consideration should be given to the effect of taking on new customer charity shops/organisations as this would increase future costs unless the grant was capped or ring-fenced. Other Considerations: 7. Legal/Statutory Power 7.1 Section 45 of the Environmental Protection Act Controlled Waste Regulations Human Resources (including Health & Safety) 8.1 N/A 9. Risk Management 9.1 There are no perceived risks however the implementation of discretionary charges may raise concern with charitable organisations. Support for waste minimisation and recycling advice would be available to help minimise the effect of any new waste costs. 10. Consultation 10.1 The Dorset Waste Partnership has been consulted on this report. 11. Equalities 11.1 N/A 12. Crime and Disorder 12.1 N/A 4

5 13. Environmental Considerations 13.1 N/A 14. Appendices 14.1 Dorset Waste Partnership Joint Committee paper + Appendix 15. Background Documents 15.1 None Report Author & Contact: Gary Hedges Telephone: g.hedges@westdorset-weymouth.gov.uk 5

6 6

7 Appendix 1 Agenda Item: Mgt Board Item 4 Dorset Waste Partnership Joint Committee Date of Meeting 26 th July 2012 Officer Bill Davidson, Head of Strategy and Commissioning Subject of Report Executive Summary The Controlled Waste (England and Wales) Regulations 2012 The Controlled Waste (England and Wales) Regulations 2012 came into force on 6 th April They replace the Controlled Waste Regulations 1992 (CWR 1992) which exempted certain premises from the costs of disposing of their waste this applied to some private institutions and businesses, and the disposal costs of waste from these premises was paid for by the taxpayer. As the cost of disposing of waste continues to increase the market for waste services was increasingly distorted by artificially low local authority charges. The 2012 Regulations classify waste as household, industrial or commercial, and also list which types of waste local authorities may make a charge for collection and/or disposal. The new Regulations have re-classified a number of premises and also allow local authorities to charge for the disposal of waste from a wider range of nondomestic premises than the CWR 1992 permitted. 7

8 The Government has taken steps to minimise the impact of the new Regulations on small businesses and publicly-funded educational establishments and as such certain exemptions from disposal costs have been included. This report outlines the key impacts of the new regulations and proposes DWP policy in each circumstance. Impact Assessment: Equalities Impact Assessment: N/A Use of Evidence: N/A Budget / VAT / Risk Assessment: Recommendation That Joint Committee considers and accepts the policies recommended in this report. Reason for Recommendation Appendices Background Papers Report Originator and Contact It is recommended that members approve this policy in order to meet the requirements of the new Regulations and to provide a clear policy for communication to existing and potential users of the service and to ensure consistency of application. This is particularly important as the implementation of the recycle for Dorset service gets underway. Appendix 1: Controlled Waste (England and Wales) Regulations Summary of DWP policies The Controlled Waste (England and Wales) Regulations 2012 Name: Sarah Wasey, Policy Development Officer Tel: b.davidson@dorsetwastepartnership.gov.uk 1. Background 1.1 The Controlled Waste (England and Wales) Regulations 2012 came into force on 6 th April 2012 and replace the previous Controlled Waste Regulation The new regulations make a number of changes to the classifications of waste from some premises. They also enable local authorities to charge for the collection and disposal of waste from a wider range of premises. Certain exemptions have been made to 8

9 reduce the burden of the Regulations on small businesses and publicly funded educational establishments. 1.2 As there are elements of discretion available to Local Authorities in the application of the new Regulations, a set of policies must be developed. These policies primarily relate to charging for collection and disposal. 1.3 The policies would be applied to all relevant premises in the phase one partner areas. Additionally, as the Waste Disposal Authority for West Dorset DC and Weymouth and Portland BC the DWP will need to recharge the appropriate additional disposal charges already being incurred. 1.4 The new Regulations now enable charges for disposal of waste to be levied on certain premises classed as household waste; this is in addition to the collection charges that were previously applicable. The types of premises this applies to include the following:- Waste from charity shops selling donated goods originating from the domestic waste steam (although the disposal charge can only be made for material that originated for non-domestic property). Waste from premises occupied by a community interest company or a charity or other not for profit body, which collects goods for reuse or waste to prepare for re-use from domestic property (in this case the disposal charge can only be made for material that originated for non-domestic property). Waste from a residential or care home Waste from premises forming part of a university, school or other educational establishment (however certain exemptions apply see 2.1 below) Waste from a hospital or nursing home Waste from prisons and penal institutions 1.5 The Regulations have re-classified the following premises as commercial waste and both collection and disposal charges are now applicable. There are a number of exemptions which are described in 2.2 below. Premises occupied by a club society or association Premises occupied by a charity used for charitable purposes (although the disposal charge can only be made for material that originated for non-domestic property) Self-catering holiday accommodation Camping and caravan sites Waste from any part of a composite hereditament used for the purpose of a trade or business. 9

10 Royal palace 2. Exemptions to disposal charges 2.1 Publicly-funded schools and further education establishments Local Authorities could previously only charge for the collection of waste, but not disposal, from educational establishments including universities, schools and colleges. The new regulations now allow local authorities to also charge for disposal of waste. However an exemption applies, where publicly funded educational establishments had their waste disposed of without charge by the DWP prior to the new regulations coming into force; they would be able to continue to receive free of charge disposal after the Regulations came into force on 6 th April Where an establishment uses a commercial provider for their waste disposal, but, chooses to move to the DWP service after the Regulations came in on 6 th April, then the DWP will be able to charge the full cost of both collection and disposal. Policy recommendation Where DWP provided a free of charge collection prior 6 th April 2012 the partnership will only charge for collection (no disposal) Where DWP charged for both collection and disposal prior to 6 th April 2012 continue to charge for collection and disposal. Any new requests for collections will be charged at full collection and disposal rates. 2.2 Small and micro-businesses The government has included the following exemption to help minimise the impact of the new Regulations on small and micro businesses. The new Regulations provide an exemption from waste disposal charges for businesses which immediately before the Regulations came into force on 6 th April were (a) eligible for free waste disposal and (b) entitled to Small Business Rate Relief (SBRR). This would apply to the following businesses (as they were previously entitled to free waste disposal under the CWR 1992), provided they are also entitled to SBRR: Self catering accommodation Camping and caravan sites Composite hereditament (which would include childminders etc working from home) Policy recommendation Where a business meets both the requirements for this exemption they would only be liable to pay a collection charge for their waste. 10

11 Where a business operated from home is entitled to free disposal they would have the option of utilising spare capacity in their domestic containers for their business waste for a fixed annual charge. Extra waste would be charged at a collection only rate. 2.3 Businesses employing up to 20 people To minimise the impact of the Regulations on firms employing up to 20 people, the new Regulations have provided that local authorities shall have the freedom to decide whether to charge for collection and disposal on a case-by-case basis, allowing them to make decisions which best support local needs and aspirations. Those most likely to be affected are in self-catering holiday accommodation and childcare (pre-school) categories. Policy recommendation That DWP policy is to charge for collection and disposal of waste where the regulations allow. Charges will not be discretionary in any circumstances as a consistent and fair approach needs to be adopted. 3. Community and Village Halls The new Regulations state that waste from premises used wholly or mainly for public meetings is to be regarded as household waste for which a collection charge, but not disposal charge, may be made. However most village and community halls which host public meetings are very often also used by clubs or societies or are hired out for events such as parties etc. The Regulations state that premises occupied by a club, society or any association is classified as commercial waste for which both collection and disposal charges apply. There is an obvious conflict between these two classifications and a policy is needed to avoid doubt. Within the DWP area there is a contrast of policies in different areas regarding the services provided and the charges for these services. There are many ways such venues deal with waste for example: some have a commercial contract, some receive a free collection, others encourage users to take waste home. In addition a considerable number of sites have recycling bring banks located in their car parks which are also open to public use. Whilst it is appropriate that discretion is used not to charge for waste collected from halls in the first category, there is a possibility of an unfair competitive advantage given to such premises which also generates commercial waste and which may be in competition with other venues (which are not exempt from charges) for social events, hosting clubs etc 11

12 Policy recommendation Halls used wholly or mainly for public meetings will be offered up to 240-litre of rubbish capacity and 240-litre of recycling capacity each fortnight on a collection only rate. A weekly food waste collection can also be provided if there is demand for this. This would also be charged on a collection only rate. Please note these services would only be available once the recycle for Dorset service is available in that area. An alternative service will be offered in the meantime, however this may not include the same range of materials. Any additional waste generated at the premises would be classed as commercial waste and appropriate collection and disposal charges will apply. Note: where bring banks are located at the premises which are accessible to the general public they will remain in place and the premises can continue to use them. These bring banks will be considered as part of an over-arching review into the DWP bring bank provision. Steve Burdis Director July

13 Appendix to DWP Report Controlled Waste (England and Wales) Regulations Summary of DWP policies Classification of waste by place of production or type of waste Collection charge Dispo sal charg e Change from CWR 1992 and exemptions DWP Policy Household Waste Domestic property/domestic caravan No No Household waste collection Private garage No No Household waste collection Vehicle/moored vessel for living accommodation. No No Household waste collection Place of worship No No Household waste collection A caravan/mobile home site for gypsies or travellers Residential hostel (which provides accommodation only to persons with no other permanent address or who are unable to live at their permanent address) Hall/premises used for public meetings No No (not defined in 1992 regulations) Household waste collection Yes No Commercial waste service collection charge only Yes No Halls will be offered up to 240-litre of rubbish capacity and 240-litre of recycling capacity each fortnight on a collection only rate. A weekly food waste collection can also be provided if there is demand for this. This would also be charged on a collection only rate. 13

14 Any additional waste i.e. generated from hiring out the hall would be classed as commercial waste and appropriate collection and disposal charges will apply. Clinical waste from domestic property Yes No Collection can be arranged on request and appropriate collection charge applied. Bulky/large items from domestic properties Yes No Collection charge applied Any article of waste which exceeds 25kgs in weight Article of waste from domestic properties which does not fit or cannot be fitted intoa receptacle for household waste provided in accordance with section 46 of the EPA 1990 or where no such receptacle is provided, a cylindrical container 750mm in diameter and 1m in length Garden waste from domestic properties Yes No Collection charge applied Yes No Collection charge applied Dead domestic pets Yes No No collection provided as standard Waste oil or grease from domestic Yes No No collection provided as standard properties Asbestos from domestic properties Yes No No collection provided as standard Waste which may not be put into a receptacle provided under section 46 of the EPA 1990 because of a notice served under that section. Yes No Collection charge applied 14

15 Residential homes, care home and care home with nursing University, schools and further education establishments Yes Yes New power to charge for disposal. Self contained domestic accommodation is not a residential home. No charge if council tax paying residents recycle for Dorset service provided with capacity appropriate to number of properties.. Yes Yes New power to charge for disposal No charge for disposal only if public funded and currently receiving free LA collection Commercial waste service If service charge applies for meal or other function this would be commercial waste and payable by management. Commercial waste service unless the school is entitled to free disposal Entitlement to free disposal: Where authority collect at present free of charge charge collection rate only (no disposal). Where DWP collect and charge full collection and disposal continue as now New request to collect charge full collection and disposal. Hospital or nursing homes Yes Yes New power to charge for disposal Commercial waste service No charge if council tax paying residents. 15

16 A penal institution Yes Yes New power to charge for disposal Commercial waste service Community interest Group and Reuse organisations Non- domestic waste from running charity/organisation New power to charge for disposal of non-domestic waste Commercial waste service collection and disposal charges Waste from premises occupied bya community interest company (being a company which is registered as such with the registrar of companies), or a charity or other not for profit body, which collects goods for re-use or waste to prepare for re-use from domestic property Yes Yes Waste from households (donated domestic waste) Yes No Household waste collection charge only i.e. items donated to a charity shop that they can t sell Non- domestic waste from running charity/organisation New power to charge for disposal of non-domestic waste Commercial waste service collection and disposal charges A charity shop selling donated goods originating from domestic property Yes Yes Waste from households (donated domestic waste) (not defined in 1992 regulations) Household waste collection charge only i.e. items donated to a charity shop that 16

17 Yes No they can t sell Commercial Waste Self-catering accommodation Yes Yes Exempt from disposal charge where eligible for free waste disposal and also entitled to small business rate relief Camping and caravan sites Yes Yes Chargeable for collection and disposal if nondomestic. Commercial waste service and rates unless entitled to free disposal Commercial waste service and rates unless entitled to free disposal Premises occupied by a charity and used for charitable purposes Exempt from disposal charge where eligible for free waste disposal and also entitled to small business rate relief Yes Yes Chargeable for collection and disposal where from non-domestic premises Commercial waste service Royal palace Yes Yes Commercial waste service Premises occupied by a club, society or association Yes Yes Commercial waste service See Hall/premises used for public meetings for waste provision on a collection only rate 17

18 Premises occupied by (a) a court; (b) a government department; (c) a local authority; (d) a person appointed by or under any enactment to discharge public functions; (e) a body incorporated by Royal Charter Yes Yes Commercial waste service A hotel Yes Yes Commercial waste service Any part of a composite hereditament used for the purposes of a trade or business Yes Yes Exempt from disposal charge where eligible for free waste disposal and also entitled to small business rate relief (see note b) Offered commercial waste service and rates unless entitled to free disposal Investigate an annual fee if they use their recycle for Dorset service for business waste. Market or fair Yes Yes Offered commercial waste service and rates Medical practitioner Yes Yes Offered commercial waste service and rates 18