Recycling firm goes out of business in funding row

Aug 30 2007 by David Bartlett, Liverpool Daily Post

A RECYCLING firm that collects glass and paper from 40,000 Liverpool homes has gone into administration, in the wake of a funding row with the city council.

Energywise Recycling has stopped collections in south and central Liverpool, and its rounds have been taken over by Veolia, which already operates a large-scale service elsewhere in the city.

The company, which employs around 50 people, had carried out kerbside collections for the past four years.

Liverpool city council turned down a request for extra funding after the company’s three-year Lottery grant came to an end.

Last night, town hall officials said Veolia was working with administrators for Energywise to offer as many people at the company jobs as possible. Deputy Labour leader Cllr Paul Brant last night said the council had failed to give support to a community-based social enterprise as would be expected.

Last night, no-one was available for comment from Energywise but earlier in the month director Annie Barker said the company had been told by the council it would be involved in recycling services until 2008.

She said: “The council agreed in 2003 that we should bid for Lottery funds to bring additional money into the recycling partnership. It has taken the benefits of almost £600,000.

“It is scandalous that, when all the money has gone, it refused to pay Energywise to continue to provide the service to the end of 2008. We have supported the council’s recycling costs for the past five years.

“Our current situation has only arisen because the council changed its mind about the inclusion of social enterprises in recycling services.”

The company successfully brought in a Lottery grant of almost £600,000 to support its work in 2004.

Cllr Brant said: “I am very disappointed that local people’s jobs are now in jeopardy and that a social enterprise has been driven to the wall.”

A council spokesman said: “Veolia have begun a recycling collection service to approximately 40,000 terraced and multi occupancy properties that previously received a kerbside collection and sort service from Energywise.

“Residents will be kept fully informed about any changes to their collection days and are currently being issued with leaflets and calendars detailing any amendments.

“Legal advice has been sought and it is believed that TUPE (transfer of undertakings) does not apply in this case, but discussions are under way between Veolia and the administrator to offer as many Energywise collection staff employment opportunities as possible.”

A spokesman for operator Veolia said: “We are in the process of following this up, and as more information becomes available we will provide it in due course.”

davidbartlett