Select Committee on Environment, Transport and Regional Affairs Memoranda


MEMORANDUM BY THE LONDON BOROUGH OF HAMMERSMITH AND FULHAM (DSW 77)

BACKGROUND

  The Council is one of four waste collection authorities within the geographic area covered by the Western Riverside Waste Authority. During 1999-2000, the Council collected over 97,000 tonnes of waste, a small increase from the tonnage for the previous year.

  This waste tonnage includes:

    —  Around 18,000 tonnes of commercial waste collected from businesses that have trade refuse agreements with the Council;

    —  Approximately 5,400 tonnes of recycled material, including around 1,000 tonnes collected by third parties, most notably Cheshire Paper Recycling;

    —  Around 9,000 tonnes of inert waste, the vast majority of which is produced by the Council's in-house highways contractor.

  The remainder of the waste tonnage is principally that collected from households within the borough, currently 76,000 in total. This covers all waste collected from domestic premises, of which around 40,000 are houses and the remainder flats and other multi-occupation premises, together with waste collected from litter bins, streets, parks and open spaces and various premises falling under the definition for household waste.

  The Council incurred a net cost of around £2.15 million in 1999-2000 on collection services. The main element of this is the direct cost of collection, offset against which is the income derived from trade waste agreements. This also includes payments from WRWA for recycling credits and income from the sale of recyclables. The latter only accounted for around £5,000.

  The Council also pays WRWA for the services provided in disposing of this waste. In 1999-2000, a household levy of £2.3 million was payable. In addition, a further charge was raised for non-household waste; this accounted for around £680,000. The levy is distributed amongst the constituent authorities of WRWA on the basis of Council Tax, whilst the other charges are based on tonnages delivered. These charges incorporate the impact of Landfill Tax, albeit indirectly, through the payments that WRWA makes to its contractors.

  Since the inception of Landfill Tax, there has been no discernible decrease in waste tonnages. The H&F position is that a small and gradual increase in tonnages has occurred. The position varied for the other three members of WRWA, but in general, overall tonnages have continued to increase. These indicate that the inception of Landfill Tax has had no impact whatsoever on waste tonnages.

NATIONAL WASTE STRATEGY AND RECYCLING

  The Government's National Waste Strategy sets new targets for handling waste. Amongst these, there is a target for waste disposal authorities to double their recycling rate by 2003 (or possibly 2004, Government statements are unclear on this) where their current performance is below 15 per cent. For WRWA, this means achieving a figure approaching 16 per cent. The performance of the four constituent authorities varies, with K&C generally the highest and Lambeth the lowest. It is however believed that Lambeth's published figure for 1999-2000 will push them above both H&F and Wandsworth.

  Recycling is a very expensive service to provide within Inner London, often with poor returns. Therefore, achievement of a much higher level of recycling is likely to require both significant levels of local investment and an ongoing publicity programme. Whether the latter should be run nationally or locally is a matter of opinion, but certainly, Hammersmith and Fulham officers are of the view that local campaigns do not always succeed, and as this is a national problem, it requires a wider approach.

  In theory, this cost is offset by the income from recycling and the recycling credit scheme. However, in practice, income from recycling has reduced to virtually nothing (only £5,000 in 1999-2000). In addition, although the income from the recycling credits is very welcome (around £141k in 1999-2000), this is an expense to WRWA and therefore ultimately is paid for by the constituent boroughs via the household levy and/or commercial tonnage charges.

  Any reduction in the landfilling of waste as a result of further recycling will, at least theoretically, lead to a reduction in handling by disposal contractors and also landfill tax. This should then translate into a reduced charge to the waste disposal authority and then to their constituent authorities. However, this indirect relationship means that it is extremely difficult to see any immediate benefits from increased recycling, at least in the short to medium term. The fact that the majority of cost to Hammersmith and Fulham arises through the levy and not a tonnage based charge also means that the main incentive to reduce waste tonnages (ie a reduced cost) may not in fact arise; the opposite may well be the case.

  There is also the question of what happens to recycled materials once these are removed from the waste stream. As stated above, the commercial value of these materials is at present extremely limited. New markets are very slow to develop and there appears to be a reliance on the private sector to develop new technologies to make better use of materials within the waste stream. However, without a commercial incentive, it is difficult to see where the encouragement to do this is going to come from.

  Also in the context of recycled materials, there is a risk that the environmental benefits of recycling are outweighed by the cost of the various processes that they go through. These include in particular the cost of transportation. The table attached to this document summarises what happens to recycled materials collected by WRWA. In many cases, these are travelling substantial distances, often by road. This raises the question on exactly how beneficial recycling really is.

WRWA PROCUREMENT PROCESS

  WRWA is currently nearing the end of a major procurement process. Its disposal contracts come to an end in 2002 and the Authority is seeking to award new contracts for either a short term period (up to seven years) or long term (up to 30).

  There are three proposals on the table, two for the short term and three for long term. All three long term proposals comprise a mixture of expanded recycling and incineration. The expanded recycling facilities principally revolve around the provision of a materials recycling facility (MRF) at the main disposal handling location (the existing site at Smugglers Way, Wandsworth). Incineration plants are intended to produce energy and different locations have been proposed for these, ranging from Nine Elms through East London to Kent.

  The size of incinerator proposed varies, however, these are generally expected to be in the region of 400,000 to 700,000 tonnes per annum. The final sizing depends on a number of factors, not the least being whether the contractor intends to take waste from elsewhere other than WRWA.

  There have been concerns raised over the sizing of the proposed incinerators (amongst other factors), in particular that these will effectively swamp recycling efforts. All three tenderers have been keen to highlight the efforts that they propose to make to stimulate and encourage recycling. These include a proactive awareness campaign, funded either through Landfill Tax credits or directly, to educate the public and encourage further recycling.

  What is equally clear is that the MRF options proposed concentrate heavily on handling "dry" materials separately, and probably excluding glass from this, to make the handling easier. Whilst this may make sense from their perspective, it will be difficult to explain to the public why glass is not as desirable as, say, paper or wood.

THE LONDON PERSPECTIVE

  There are a number of issues that arise principally due to the London waste environment. These include:

    1.  The current lack of a London wide strategy inhibits waste management decisions, which need to be taken. The Mayor has the responsibility for developing a strategy, but is unlikely to produce even a working draft until early in 2001.

    2.  The high proportion of terraced housing in the borough creates an urgent situation within Inner London, given the volumes of waste generated and the difficulties arising from storage, collection, vehicles movements etc. This makes recycling much more difficult than in leafy, suburban areas, where the issues are completely different.

    3.  The proximity principle means that the majority of the waste generated within the WRWA area should in theory be dealt with inside the geographic confines of the boundaries of the constituent authorities. The arrangements currently proposed by the three tenderers for the long term solutions would all mean that significant volumes of waste produced within the WRWA area would be transported outside it for final disposal.

    4.  Heavy consumerism and lack of control over amount of packaging means that an unrealistic expectation is placed on changes in human behaviour required to control the increase in waste tonnage. It is extremely difficult for individual local authorities to influence this, and there is the risk of considerable negative feedback should authorities be forced into charging individuals for their waste.

    5.  The impact of New Technology will have a devastating effect on the amount of packaging used and produced. As an example, home deliveries from goods ordered on the Internet introduce additional protective packaging into the waste stream. There is a considerable growth area and one that most consumers are unlikely to recognise.

    6.  Landfill Tax is set far too low at present to have any meaningful effect on the amount of municipal waste sent to landfill. Some benefits may have arisen from the effect it has had on road construction, with more reuse of aggregates and road surface scrapping, which otherwise were sent for landfill. However, current levels would probably need to be raised at least five-fold before any effect was seen. Even than, the indirect nature of the charge (local authorities are effectively collecting this for the Government) means that they are likely to carry the blame.

    7.  This example of the effect that landfill tax has had on the reuse road materials illustrates the vital role markets for collected materials has on stimulating sustainable waste management actions. The cost of developing markets within the London area is considerably higher than elsewhere and this undoubtedly serves as a deterrent.

    8.  The incompatibility of the three coloured glass types gives rise to unnecessarily high collection costs and adverse environmental impact. It seems inconceivable that some technological fix cannot be applied to overcome this incompatibility, rendering a common type of container glass from the three types collected. This would enable the co-mingled collection of all three colours, and alleviate the current imbalance of excessive amounts of low value and unwanted green glass. The alternatives suggested in the waste strategy, of either banning imports of green glass or seeking to persuade importers to change, are not realistic.

    9.  The additional environmental impact from polluting emissions resulting from additional vehicle movements necessary in recycling collection systems, especially in inner London, rarely gets factored into financial or environmental calculations, when analysing cost benefits.

    10.  The lack of available storage space within typical inner London households, denies the Collection Authority the opportunity to alternate between recycling and general refuse collections, thus increasing operational costs and total vehicle movements. There is a wide expectation within London that waste will be collected at least once a week, and growing pressure to increase this to twice weekly.

CONCLUSIONS

  There is strong evidence to suggest that the introduction of Landfill Tax has had no impact on the generation of waste. In addition, there is no immediate benefit to Collection Authorities who do manage to achieve significant reductions in waste tonnages, owing to the current funding regime that applies to waste disposal authorities.

  The cost of recycling is sufficient to prohibit or at least discourage large-scale expansion of schemes on a borough-wide basis. The lack of readily available and economically viable markets for recycled materials within the Greater London area and the lack of a London-wide waste strategy are also key factors.

DETAILS OF ROUTES TAKEN BY VARIOUS HAMMERSMITH AND FULHAM DERIVED RECYCLABLE MATERIALS BETWEEN COLLECTION AND FINAL DESTINATION
MaterialRecycling Conduit Comments
Mixed Paper and Card (from kerbside scheme and small number of Council-owned bring site banks) WRWAAll mixed paper and card delivered to and deposited in the bulk transfer bay at WRWA by the constituent boroughs (and others) is collected for recycling by Severnside Waste Paper Ltd. Severnside is a part of the St Regis Paper group, one of the largest paper makers in the United Kingdom. The material is loaded loose from the bay into 38 tonne GVW bulk tippers for transport by road directly to the mill in Sittingbourne.

Producing approximately 1.25 million tonnes of new paper each year at its eight UK Paper Mill locations, 95% of its raw material is recovered paper. St Regis Paper is part of David S Smith (Holdings) plc, a major corrugated packaging supplier in the United Kingdom and a distributor of stationery and office products.

All WRWA sourced material is taken to Kemsley Paper Mill, Sittingbourne, Kent, for reprocessing into board and forms 25% of the mill's "loose fill" requirement (the remaining 75% of material used in the process being sorted and baled). 500,000 tonnes of recycled product is produced per annum at Kemsley, using 100% recycled fibre.
Newspaper, magazines and advertising materials (from CRL owned bring site banks) Cheshire Recycling LtdAll paper deposited in the Cheshire Recycling owned paper banks is collected by the company's transport contractor, Ryder Ltd, and delivered to a number of transfer stations situated around London it is then transferred into 38 tonne GVW bulk tippers for transport by road to the Bridgewater paper mill located in Ellesmere Port, South Wirral, Cheshire. Cheshire Recycling is a part of the Bridgewater Paper Company, which in turn forms part of Abitibi-Consolidated. Abitibi-Consolidated is one of the world's largest newsprint companies and was formed in May 1997 through the merger of two of North America's largest paper companies, Abitibi-Price and Stone-Consolidated.

The Bridgewater mill produces approximately 240,000 tonnes of standard and coloured newsprint per annum, plus 20,000 tonnes of "Value Added" products, using over 95% recycled content.

Although CRL guarantee to take all tonnage collected through local authority schemes, none goes to landfill or is incinerated. Any tonnage that cannot be used by CRL's UK mills because of machine downtime or general over-capacity is firstly offered to other UK reprocessors with whom there is a reciprocal agreement. This is more cost-effective to both parties than either exporting or importing to cater for under or over-capacity.

Any remaining tonnage is baled at Ellesmere, prior to being transported by ship to Abitibi-Consolidated mills located overseas (mainly in Asia). During 1998-99, CRL collected 360,000 tonnes of material countrywide, of which 30,000 tonnes were shipped overseas. Abitibi-Consolidated' overseas mills are viewed by CRL as a useful means of mopping up domestic over-capacity prior to the industry stepping up a gear in order to process all the material collected in the UK.
Clear GlassWRWAAll clear glass delivered to and deposited in the bulk transfer bay at WRWA by the constituent boroughs (and others) is collected for recycling by Berryman Ltd. The material is loaded from the bay into 38 tonne GVW bulk tippers for transport by road initially to the processing plant in Dagenham, Essex. Here, the cullet is washed and contamination removed before being crushed into uniform sized pieces.

The material is then sold on by Berrymans and transferred again by road to UK glass manufacturing companies such as British Glass in Sheffield, for recycling into new glass products.
Brown GlassWRWAAll brown glass delivered to and deposited in the bulk transfer bay at WRWA by the constituent boroughs (and others) is collected for recycling by Berryman Ltd. The material is loaded from the bay into 38 tonnes GVW bulk tippers for transport by road initially to the processing plant in Dagenham, Essex. Here, the cullet is washed and contamination removed before being crushed into uniform sized pieces.

The material is then sold on by Berrymans and transferred again by road to UK glass manufacturing companies such as British Glass in Sheffield, for recycling into new glass products.
Green GlassWRWAAll green glass delivered to and deposited in the bulk transfer bay at WRWA by the constituent boroughs (and others) is collected for recycling by Berryman Ltd. The material is loaded from the bay into 38 tonne GVW bulk tippers for transport by road initially to the processing plant in South Kirby, Merseyside. Here, the cullet is washed and contamination removed before being crushed into uniform sized pieces.

Where there is a market, the material is then sold on by Berrymans and transferred again by road to UK glass manufacturing companies such as British Glass in Sheffield, for recycling into new glass products.

Owing to the current glut of green glass in the UK, domestic glass manufacturing companies cannot currently handle all the material being collected. Much of it is therefore being stockpiled until such time as:

(a)  British glass manufacturing companies can take it for recycling;

(b)  alternative markets can be found for it, eg construction and highways aggregate; or

(c)  a market can be found overseas, eg some green glass has recently been transported to Argentina by ship for recycling.

Other Boroughs and Other Materials
Plastics
SITA Cremorne Wharf (K&C)At present, of the 4 boroughs constituting WRWA, only K&C collects plastic bottles. These are collected via the integrated kerbside waste and recycling collection scheme and delivered to the Materials Recycling Facility (MRF) partially sorted by the operation at Cremorne Wharf, both operated on the borough's behalf by SITA Ltd.

When the markeet allows SITA arrange for the sorted K&C derived PET bottles to be transported by road (as part of larger loads) to a plant in Somptin, East Sussex for reprocessing. When the market is depressed and unviable, unsorted mixed plastics are transported by ship as part of larger loads to China.

There is likely to be no net environmental benefit in transporting relatively low-density materials like plastics over such large distances.

Wandsworth would like to tap into this operation via WRWA, but as yet have not done so.
September 2000



 
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