Dear Cllr Mitchell,
 
Below are a number of unanswered questions that should be addressed relating to the proposed 25 year contract that Oxfordshire County Council intends to sign with Viridor Waste Management.
 

 
£635m over 25 years at 165,000 Tonnes / year = £154 / Tonne.
 
Existing modern incineration charges £100 - £120 / Tonne.  How does £154 / Tonne represent Value For Money?
 
Why is Viridor prepared to "share financial benefit" with OCC?  Is it to bring the net £ / Tonne in line with the market?  Is OCC expected to subsidise Commercial & Industrial (C&I) waste to encourage it to be incinerated - so that Viridor can then share the financial benefit?
 
Why does Viridor not just charge the market rate to OCC - and make up its revenue and profit in the competitive C&I sector?  Is it that it wants the OCC contract value to cover the cost of build and operation over 25 years, thus guaranteeing its financial viability, with a promise to share, what would then be, guaranteed profit from C&I?  Does this not place the risk entirely with OCC?  How is this Value For Money?
 
Can Viridor guarantee the C&I tonnage needed to bring the net cost to OCC down to "market level"?  Unlikely, as C&I waste is in decline, and why should it - Viridor's  financial position is protected?  How is this Value For Money? 
 
No significant tonnage ofC&I waste is incinerated outside of London.  C&I waste is best managed by Mechanical Biological Testing and Anaerobic Digestion - much cheaper technologies than incineration.  Should C&I waste go to incineration the older, existing, plants will be preferred at a cost of £50 - £60 / Tonne.
 
Waste tonnage in the UK is well past its peak.  Tonnage has gone down steadily over the last five years - pre recession and at a time when new housing was still being built.  All indicators are that waste tonnage will continue to decline into the future.  Major sources of C&I waste (such as supermarkets) have publically stated their intentions to significantly reduce the amount of C&I waste produced.  If more incinerators are built there will be competition for feedstock - driving the market price down and compromising Viridor's potential for profit sharing with OCC. 
 
Whilst OCC has not guaranteed minimum annual tonnage under the contract it is very likely that it has guaranteed minimum annual payment - irrespective of tonnage used. 
As MSW levels continue to decline what does this mean in terms of increase in £ / Tonne fee?  Viridor will have additional capacity to generate profit from C&I waste (if it can find feedstock) and would, of course be happy to share it with OCC to offset an even higher
£ / Tonne fee.  How is this Value For Money?
 
Using landfill, on the other hand, means that every tonne of MSW saved realises the full cost saving for that tonne. 
 
Current Landfill charges (Gate fee and tax) are currently much cheaper than the Incineration Proposal.  There is a need to divert waste away from landfill.  As it will be some time before charges for modern incineration match that of landfill this time should be used to consider alternative technologies taking into account the continued reduction in waste levels, the desire for C&I customers to secure cheaper waste management solutions and that, at the current projected build levels, incinerators run the risk of being starved of feedstock leading to the potential need to import waste from outside the UK.
 
Is the Viridor proposal really such good "Value For Money"?  If so prove it and give your Council Tax Payers peace of mind.
 
It would be appreciated if you would kindly provide answers to these questions as proof that this deal represents value for money not only for OCC, but also for the residents of Oxfordshire.

Kind regards
 
Ardley Against Incinerator

The “Independent” published this article in the last 14 days questions the UK’s need for incinerators, the size of such proposed developments but also questions if there really is a need and the fat that we don;t have enough waste to fuel such plants and we could end up importing waste from other countries to feed these monsters.

Click here to read the full article - - - - - - UK MAY HAVE TO IMPORT RUBBISH