A BATTLE over where to site two controversial new waste disposal plants in Merseyside could cost the region more than £400m, the Daily Post can reveal.
It is feared the overhaul of how the region deals with its rubbish could suffer costly delays as each local authority tries to avoid having them within their boundaries.
A Merseyside Waste Disposal Authority (MWDA) report also warns just a three-year delay could cost the environment by causing the equivalent of 285m kg of additional carbon dioxide to be emitted.
The authority has presented each of the five Merseyside councils and Halton Borough Council with a report warning of the potential costs if there is a delay. Liverpool, Wirral, Sefton, Knowsley, St Helens and Halton authorities would foot the bill for any overspend.
MWDA asked auditors Ernst and Young to review how much more they could have to spend if the scheme was held back by three years.
The worst-case scenario would increase the bottom-line costs by £405m. That figure includes £175m in lost private finance initiative (PFI) credits, £139m more to build the sites due to construction inflation and £216m to continue burying rubbish in landfill. They said the lower limit of extra costs would be £192m.
It is thought that Carl Beer, director of MWDA, published the report – which was initially confidential – to concentrate the minds of the authority members on choosing suitable sites on time.
A review of the project by Governmental advisors 4Ps highlighted some concerns in how the project was progressing.
They said MWDA should change its constitution and board membership to water down the political influence councillors are under.
“Controversial decisions” could be more easily managed by co-opted, non-voting, non-local authority members, 4Ps said. Mr Beer said the authority was not considering overhauling its constitution.
The 4Ps also advised MWDA to immediately review their procurement strategy for buying the sites and getting planning permission.
Mr Beer said they reviewed their current strategy – which is to buy the sites and apply for planning permission themselves – but chose not to change methods.
Describing why he published the report, Mr Beer said: “We didn’t want to be accused – when council tax bills are going up as a result – of ‘why didn’t you tell us?’. We are putting on the record the level of risk is so big we need all the support we can get.”
Four of the preferred sites are thought to be: an existing waste transfer centre at Stonebridge Lane, Gillmoss; Butlers Farm, north of Knowsley industrial estate, Kirkby; Crab Tree Rough, next to the Getrag Ford car plant, Halewood; and Ditton railway sidings, near Widnes.
Two Merseyside authorities have already passed resolutions against incinerators.
Mr Beer added: “Knowsley has passed a resolution and Liverpool has done the same. There’s a risk of delay. We’re simply warning that that will cost tax payers money.”
Asked if the sites, which will each handle 325,000 tonnes of waste a year, were political hot potatoes, Cllr Tony Robertson, Sefton’s leader, said: “That’s a statement of the obvious.
“But if we don’t go ahead with a robust waste disposal process, we will be in very difficult financial circumstances.”
