by Cobbler's apprentice
A council-owned waste management company faces a claim for £10m compensation for loss of business from a private company it previously employed to recycle waste.
Premier Waste Management, part-owned by Durham County Council, is in dispute with private company Delta Reclamation Ltd. Graham Brown, Paul Bennett and Chris Grindell set up Delta in 2006 to recycle waste tyres for Premier. The two companies have been in dispute since October last year, since when, claim Delta, Premier have effectively stopped them from operating.
This followed a meeting at which Delta made allegations that some of Premier’s operations fell below required legal standards for the treatment and disposal of waste.
Following an investigation, last month (January) Premier admitted that over 400 tonnes of waste which should have been recycled had been buried on a landfill site. 70 tonnes of compost-like material for use on brownfield sites had been buried, and a further 370 tonnes had been used to cover the landfill site. Delta directors Brown and Bennett claim there have been many more breaches of regulations by Premier who deny these allegations.
Another company run by Brown and Bennett, Delta Recycling Ltd, is also claiming against Premier for £70,000 worth of unpaid work done up to the end of 2007, as well as Delta Reclamation’s claim for the loss of potential profit of half a million pounds a year for 15-20 years. In addition, they are disputing Premier’s valuation for machinery which was to be transferred from Delta to Premier. Delta value the machinery they have installed on Premier’s site at Coxhoe at £1m.
Brown and Bennett both have over fifteen years experience of the waste disposal industry. In 2005 they set up Delta Recycling to recycle household waste, and in 2006 they set up Delta Reclamation to recycle used tyres. Both companies had only one customer – Premier Waste.
At first Delta Recycling operated from a site at Walker in the Newcastle area, but after a disastrous fire there in December 2006 they moved to the Joint Stocks waste disposal site at Coxhoe, becoming tenants of Premier Waste. Delta Recycling set up their own machinery to deal with plastic and other difficult waste and turn it into material suitable for recycling/recovery. In a separate arrangement, Delta Reclamation shred waste tyres which can then be used as a drainage layer on landfill sites.
“When Premier increased its throughput of domestic waste through its aerobic digestion process at Thornley by over 60%, we realised that we would need to invest in bigger machinery,” said Brown, “up to this point, Premier had encouraged us, even to the extent of writing a letter to our bank supporting our request for further borrowings. Although we had a long-term contract with Premier for the treatment of tyres, we did not have one for the waste treatment.
“To justify our spending a further good deal of money – around £150,000 - on new machinery, we asked Premier for the long-term contract that they had been discussing with us for some time. This was for the work we had been doing for Premier, dealing with domestic waste. We already had a substantial investment in the business including overdrafts, finance and personal monies, and Premier was our only client. Instead, they suggested we set up a joint venture between the two companies, and this was still under consideration when there was a serious disagreement between us and a complete breakdown of relations.”
The disagreement occurred at a meeting at Premier’s Aykley Heads headquarters near Durham City in October last year. The meeting broke up acrimoniously after Brown alleged that some of Premier’s operations breached government regulations. “From our point of view, we were trying to help Premier by pointing out certain deficiencies, which they dismissed out of hand. It was only when we realised that Premier were in effect trying to put us out of business that we started to investigate further,” said Brown.
“The very next wagon that arrived on site to deliver waste to our plant was stopped at the gate,” said Brown, “although we were able to continue working for a few more weeks, Premier made it virtually impossible for us to run our business. In the end it seemed to everybody that the only way forward was to seek an exit strategy acceptable to both sides. So far, there has been no such agreement and we will take it all the way to a full court case if all else fails.”
In an attempt to keep their business going, the Delta Reclamation directors sought an injunction on Premier to get them to honour their agreements, but this failed. Delta was ordered to pay Premier £25,000 costs, which Brown has paid. Now Brown and his fellow-directors face the long-drawn-out process of arbitration and possible legal action. “The two Delta companies are not operating at present, but we are attempting to avoid going into administration by paying off company creditors from our own resources,” said Brown.
Dr Les Grant, Group Chief Executive of Premier Waste Management Ltd, has refused to comment on Delta’s claims.
The allegations against Premier Waste are the subject of a BBC television programme to be broadcast this Friday March 7, “Inside Out” on BBC1, 7.30pm.: “The causes of an unpleasant odour in a County Durham village” (Radio Times).
Tuesday, 4 March 2008
Thursday, 28 February 2008
Councillor quits Labour Party
by Cobbler's apprentice
Long-standing Labour councillor Eddie Murphy from Crook has quit the party over its policy of giving priority seats to women candidates. He intends to fight the elections for Durham’s new unitary authority on May 1 as an Independent, and predicts that more will follow his example.
Cllr Murphy, who has been chairman of Wear Valley District Council for the past two years, failed to gain selection after Labour installed Ruth Seabury as the “compulsory woman” in one of the two seats in the Crook South ward. “I don’t believe in discrimination of any kind and this is going too far,” said Cllr Murphy, “I have also been uneasy ever since the invasion of Iraq. I had hoped that things would change when Gordon Brown took over as prime minister, but nothing has.
“Other local Labour parties in County Durham have yet to select their candidates, and I predict that quite a few other people will find themselves in my position.”
Cllr Murphy has been a councillor for 13 years and a Labour party member for over 20 years. After serving in the RAF for 15 years he worked for Durham City council and was NALGO branch secretary for 13 years.
Long-standing Labour councillor Eddie Murphy from Crook has quit the party over its policy of giving priority seats to women candidates. He intends to fight the elections for Durham’s new unitary authority on May 1 as an Independent, and predicts that more will follow his example.
Cllr Murphy, who has been chairman of Wear Valley District Council for the past two years, failed to gain selection after Labour installed Ruth Seabury as the “compulsory woman” in one of the two seats in the Crook South ward. “I don’t believe in discrimination of any kind and this is going too far,” said Cllr Murphy, “I have also been uneasy ever since the invasion of Iraq. I had hoped that things would change when Gordon Brown took over as prime minister, but nothing has.
“Other local Labour parties in County Durham have yet to select their candidates, and I predict that quite a few other people will find themselves in my position.”
Cllr Murphy has been a councillor for 13 years and a Labour party member for over 20 years. After serving in the RAF for 15 years he worked for Durham City council and was NALGO branch secretary for 13 years.
Entrance features “only” cost £160,000
(from the Northern Echo 25th February 2008)
Sedgefield Borough Council has denied rumours that two entrance features to the newly-named Aycliffe Business Park will cost £800,000 by saying that they will cost “only” £160,000.
The council, to be abolished next year when the new Durham County unitary authority will take over, has re-branded the former Aycliffe industrial estate and is modernising it at a cost of £800,000. This will pay for environmental improvements, installation of street furniture and extensive planting. The £160,000 is for two sets of three entrance walls at the junction of A167.
Sedgefield Borough Council has denied rumours that two entrance features to the newly-named Aycliffe Business Park will cost £800,000 by saying that they will cost “only” £160,000.
The council, to be abolished next year when the new Durham County unitary authority will take over, has re-branded the former Aycliffe industrial estate and is modernising it at a cost of £800,000. This will pay for environmental improvements, installation of street furniture and extensive planting. The £160,000 is for two sets of three entrance walls at the junction of A167.
Health Hazards at three Durham Schools
(from the Journal, 25th February 2008)
Health inspectors found hygene problems and other health hazards at three schools in County Durham in 2006 and 2007.
Montalbo Primary School, Barnard Castle (inspected Sept 2006): no soap at basin.
Kirk Merrington Primary School (inspected Oct 2006): not able to guarantee a safe catering environment, both in terms of food hygiene and health and safety. Several flies present in kitchen; adequate procedures must be in place to control pests.
Spennymoor School (inspected March 2007): “health hazard” reported from drainage problems.
Health inspectors found hygene problems and other health hazards at three schools in County Durham in 2006 and 2007.
Montalbo Primary School, Barnard Castle (inspected Sept 2006): no soap at basin.
Kirk Merrington Primary School (inspected Oct 2006): not able to guarantee a safe catering environment, both in terms of food hygiene and health and safety. Several flies present in kitchen; adequate procedures must be in place to control pests.
Spennymoor School (inspected March 2007): “health hazard” reported from drainage problems.
Monday, 11 February 2008
Councils' planned spending spree
This is an adapted and abridged version of 'Councils' cash curb' (Newcastle Journal, 8 February 2008).
The government is set to impose financial controls on district councils in... County Durham to stop them "blowing" budgets before new unitary authorities are established in 2009.
The Communities Secretary is likely to delegate power to committees of district and county
leaders leading the unitary move, before the role passes to new countywide authorities being elected in May.
Details emerged after Durham North MP Kevan Jones called for controls after expressing concern over the risk of “ludicrous” contracts being signed by district councils as MPs discussed legal orders that will formally begin the countdown to unitary status.
Mr Jones strongly backed a unitary Durham authority but claimed Derwentside district council was spending £10m on “a mausoleum” for the previous council leader – which his office later said referred to plans for a new leisure centre at Berry Edge, near Consett. “I would not want the new county council to come into being with a long list of commitments or to find that in the meantime land had been divested to various organisations,” said the Labour MP, with Communities Minister John Healey promising controls would be used to protect taxpayers
Alex Watson, leader of Derwentside council, warned £11m in reserves held by his “good house-keeping” authority, with £10m set aside for the Berry Edge leisure facility, would be spent elsewhere because of the “draconian” financial controls. He defended Berry Edge, saying two old sites were past their “sell by date”.
Durham County Council leader Albert Nugent, who chairs the county-district group overseeing reorganisation, said councils were running on a “business as usual” basis with checks to ensure any decisions creating an “unreasonable liability” for the unitary council were properly considered.
Durham County Council holds general reserves of £11.8m and earmarked funds of £68.9m
The government is set to impose financial controls on district councils in... County Durham to stop them "blowing" budgets before new unitary authorities are established in 2009.
The Communities Secretary is likely to delegate power to committees of district and county
leaders leading the unitary move, before the role passes to new countywide authorities being elected in May.
Details emerged after Durham North MP Kevan Jones called for controls after expressing concern over the risk of “ludicrous” contracts being signed by district councils as MPs discussed legal orders that will formally begin the countdown to unitary status.
Mr Jones strongly backed a unitary Durham authority but claimed Derwentside district council was spending £10m on “a mausoleum” for the previous council leader – which his office later said referred to plans for a new leisure centre at Berry Edge, near Consett. “I would not want the new county council to come into being with a long list of commitments or to find that in the meantime land had been divested to various organisations,” said the Labour MP, with Communities Minister John Healey promising controls would be used to protect taxpayers
Alex Watson, leader of Derwentside council, warned £11m in reserves held by his “good house-keeping” authority, with £10m set aside for the Berry Edge leisure facility, would be spent elsewhere because of the “draconian” financial controls. He defended Berry Edge, saying two old sites were past their “sell by date”.
Durham County Council leader Albert Nugent, who chairs the county-district group overseeing reorganisation, said councils were running on a “business as usual” basis with checks to ensure any decisions creating an “unreasonable liability” for the unitary council were properly considered.
Durham County Council holds general reserves of £11.8m and earmarked funds of £68.9m
Friday, 8 February 2008
Rubbish: Round one
Waste should have been recycled and not buried
Northern Echo, 9th January 2008
Northern Echo, 9th January 2008
More than 400 tonnes of waste which should have been recycled was buried in landfill, an investigation has revealed. Waste management company Premier Waste Management, which is part-owned by Durham County Council, immediately called in the police when it discovered the error, at its recycling plant in Coxhoe, County Durham.
Premier process - the PR spin
Recycling firm set for towering performance
Newcastle Journal, 18 January 2008
Newcastle Journal, 18 January 2008
A crucial time is looming for a towering vision of how up to 300,000 tonnes a year of North-East waste can be dealt with. Premier Waste Management already uses a system of biological digestion in three towers at Thornley in County Durham to process 62,000 tonnes of household waste by the sophisticated and controlled mix of microbes, water, air and temperature.
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