Cost concerns raised over export strategy

RISING costs of Guernsey’s waste export strategy were was the focus of many concerns in the States yesterday as members voted through the latest report paving the way for export by the end of 2018.

Deputy Tony Spruce, a former PSD board member, said he was sceptical about the direction and assumptions made by the department over its export-based waste strategy. (Picture by Steve Sarre, 1320982)
Deputy Tony Spruce, a former PSD board member, said he was sceptical about the direction and assumptions made by the department over its export-based waste strategy. (Picture by Steve Sarre, 1320982)

Capital costs of £33m. are predicted, up from £29.5m. in 2014, and operational costs of £298m. over the life of the 20-year strategy.

Households face average weekly waste bills around double what they are paying now.

Policy & Resources now has delegated authority to sign off the final contracts.

In summing up, States’ Trading Supervisory Board president Charles Parkinson said that the estimated costs has been ‘woefully inadequate’.

He accepted some were unhappy with the strategy but now was not the time to revisit it.

‘It’s my intention to deliver the strategy within the figures that are in front of us,’ he pledged.

Deputy Neil Inder highlighted the cost of the £25.6m. transfer station – including £2.6m. for design, £4.6m. for preliminaries and project management and in comparison £5.7m. for the actual plant.

He warned the States was about to vote through an implementation document that, by its own admission, was likely to push further islanders into the scope of the benefits system.

Deputy Richard Graham was among those concerned about giving delegated authority to Policy & Resources to sign off on the contracts, given the history of rising costs.

Deputy Heidi Soulsby asked if could for a post-implementation reviews of the project could be made public when they were completed. She had an assurance from Deputy Charles Parkinson that he would make a statement if the costs went above what was in the policy letter.

Funding the capital elements from the bond concerned Deputy Laurie Queripel.

Because interest would have to be paid, it raised the final capital costs by £19.5m. at a rate of 5%, although it is hoped this will be lower.

‘By using the bond we are inflating the costs for the householder,’ said Deputy Queripel.

His concerns about using the bond were echoed by deputies Carl Meerveld, Matt Fallaize and Chris Green.

An apology was owed to the people of Guernsey, Deputy Peter Ferbrache said, over money spent on aborted strategy and figures in the export strategy in 2012 and 2014 that were ‘abjectly wrong’.

‘It was absolutely incompetent and useless,’ said Deputy Ferbrache.

Deputy Matt Fallaize argued the export strategy costs were comparable with the Suez plant from 2009.

The issue was with the charging mechanism which needed to be changed to limit the disproportionate burden on people of limited means.

Employment & Social Security president Michelle Le Clerc said it was important discussions began soon about how her committee would help through the benefits system.

Scrutiny should investigate why the original costings in 2012 were so ‘hopelessly out,’ Deputy Mark Dorey said.

Comments for: "Cost concerns raised over export strategy"

Prospero

Morning

"Funding the capital elements from the bond concerned Deputy Laurie Queripel.

Because interest would have to be paid, it raised the final capital costs by £19.5m. at a rate of 5%, although it is hoped this will be lower.

‘By using the bond we are inflating the costs for the householder,’ said Deputy Queripel.

His concerns about using the bond were echoed by deputies Carl Meerveld, Matt Fallaize and Chris Green. "

So there we have it - the first probable deployment of the Bond on a Capital project - the thin (thick ?) end of the wedge.

It has always been my belief that this is why far more was borrowed than was required - if Bond monies are utilised on this project then P&R will borrow and spend us and the next generations into penury.

It was also hilarious to hear Dep Le Clerc claim the runway extension was "revenue bearing" because of landing fees.

It was doubly frightening as she really seemed to believe it !!

John West

How long will it take to recoup the ~£80m? Of course not long with the average £12.66 per passenger!

All who voted for the waste strategy need to hang their heads in shame - it works out at an average of £261 per islander per year (not household). I appreciate it isn't as clear cut as this but however one cuts it, this is the end result. £5/week per person.

Mark

I find it very worrying that there is no appreciation for the fact that the tax payer is already paying for the bond. It doesn't matter whether it gets deployed on this project or not, the interest is accruing and there's only one source of money to pay for it, it doesn't matter whether it's collected by income tax, refuse rates, dog tax, breathing tax or any other mechanism that can be conjured up it's still the same 65 odd thousand people stumping up the funds.

Toby

The Bond has so far hasn't cost the taxpayer a penny, it has made an overall profit of £5m.

Banned again!

I've been to the moon & back since breakfast Toby. I expect you are going to want (I hope!!) some proof before you swallow my statement hook line & sinker.

Toby

Are you implying that a senior politician is being economical with the truth ?

I have to admit at first look I couldn't square £7m a year Bond payments with a borrowing of £330m at 3.6% ( plus costs ) but I just assumed maths had changed a lot since I got A Levels in it back in the 80s, but I suppose there's an outside chance that GSP is the one who's made a mistake ....

John West

Toby you are quite correct. At least t

It's just a problem for another day though, 330,000,000 problems for another day.

Prospero

Clarifier

Dep Le Clercs comment / response was made during a call on Radio Gsy last Sunday during the 'phone-in.

Robbo

so.........

How much is my refuse rate going to be, or how much per bag am I going to pay and when does it start?

I currently pay £200 per year to St.Peter Port parish in my rates.

Can any deputies on here provide an answer??

Laurie Queripel

Robbo

The average charge per week per household is forecast to be around £7 (personally I am dubious about this).

The charging regime will be quite complex, a mixture of standing/flat charges and bag charges (all the details haven't been made known yet). The 'black bag' is likely to be in the region of £2.50.

The system is projected to be up and running by late 2018.

Common sense

LQ how can the deputies vote on a strategy that has not been finalised from a financial aspect, you yourself are sceptical of the costs and with BB clearly failing to understand the basics of any project (report in the Salarie corner) there is no clear figure on how much each household will pay.

The only comfort I find is that every week when the residents put out their rubbish or purchase sacks it is a reminder not to vote at the next election for those who passed this expensive strategy.

Laurie Queripel

Common sense

Valid point. The charging system has not yet been finalised (hence my limited response to Robbo) or the exact figure per element (i.e. bag, flat charge etc). This level of detail simply wasn't available to deputies, I couldn't vote for the strategy on that basis (I had other concerns as well). If the amendments seeking to contain and control costs had been passed it would have provided some comfort.

Common sense

LQ Thank you for your reply

YG1234

So when will we hear the cost per household ? when is it coming in ? will they look at bottle curb side recycling.

I must find out the figures and % of householders who uses kerb recycling I expect it is very low due to the fact that people with bottles and glass go to the areas that take it.

Ridiculous that you cant put bottles out.

Island Wide Voting

What I found ridiculous during the debate was the statement that 40% of each black bag is currently food waste

Who the hell is using up my other 99% share of my half black bag each week?

Cannon

The question of waste disposal has been talked about for many, many years and still our so called politicians talk and talk about it.

How many States of Guernsey elections do we have to have before some politician/s have the guts and nerve to once and for all make a decision and stand by it.

Stop pussy footing about and make a decision.

All of us contribute, even the politicians and their families, to the waste we produce and as we do not have our own incinerator we have no choice but to transport the waste off the Island.

Again our politicians of the day failed us.

Jersey is the closest and I presume easiest and cheapest. GO FOR IT and make a decision, for God's sake.

Donkey Boiler

No, we don't have to export waste, we can still landfill. There are numerous, dangerous, water filled quarries left over from an earlier industry. These holes, apart from those required for water storage are of no use. Landfill, using the most up to date methods, should be used until they are all filled. The cost would be far less, providing Bazman and the other super-heroes of the Guernsey Green Party did not hike the gate price so high to suit their own political deceptions.

Devil's Advocate

All the quarries of decent size are used for water storage. Anything else is so small that its not worth the cost of setting them up for dumping, and/or in a water catchment area. We simply cannot risk polluting our water supply, it's either impossible to remove the pollution or mega expensive.

Election Issues

Cost concerns raised over export strategy.

Everybody should be concerned about the costs of this waste strategy.

Capital costs of about £33million which are up from £29.5million in 2014.

Operational costs of around £298million over the life of 20 year strategy.

Again we were told by Deputy Charles Parkinson that the estimated costs were woefully inadequate (sounds mighty similar to the Salerie Junction Project).

The Bond will be used for the capital costs of around £33 million with a 5% interest rate added.

Some islanders may not be able to afford these charges (or extra taxes) and so help will be required through benefit system.

Standing charges of about £4 a week even if people do not even put a bag of rubbish out for collection.

Black bags ( or bag tags) to cost around £2.50.

What will the total costs actually be in 2018? Does anyone actually know for sure?

What will the total operational costs be in 3 years?

It's going to be too expensive for this tiny island.

Dogwatch

This squandering of around a third of a BILLION£££££££££Pounds, should now make everyone on the island realise that our deputies just don't have two brain cells to rub together among the whole lot of them!

Actually, there are of just a couple who I would trust to be named as my executor, but as for the rest, well I am speechless and cannot contain my anger for a minute longer, I going to explode - BANG! Oh too late now I spattered all over the walls of our living room! Bast--ds!

Island Wide Voting

I take just a smidgin of comfort in the knowledge (source:The Mariners) that the Civil Servant Mandarin who came up with the original back-of-a-fag-packet estimate which set the runaway train rolling on this suicidal journey is now driving the yellow vehicle in the photo

Election Issues

Topical

http://amp.dailycaller.com/2017/02/20/dont-recycle-its-un-american/

Election Issues

http://www.forbes.com/sites/amywestervelt/2012/04/25/can-recycling-be-bad-for-the-environment/#61436b1a2b37