Agenda item

The attached briefing provides the committee with an update on the West London Waste Authority.  Jim Brennan, Director, West London Waste Authority, Sue Harper, Director of Environment and Neighbourhoods and Cllr Mashari, lead member for Environment and Neighbourhoods will be attending the meeting.  

The Committee considered a briefing paper which provided an update on the West London Waste Authority (WLWA). The briefing paper also contained copies of an exchange of letters between the Chair and the Director of the WLWA, which set out and responded to concerns expressed at the committee’s January meeting. Jim Brennan (Director WLWA) started by apologising unreservedly for the position in which the WLWA had found itself and for the financial burden placed on member authorities and outlined the steps taken to ensure there was no recurrence. Governance had been strengthened with changes in staffing structures that would offer improved support and challenge and the establishment of an Audit Committee with an action plan to ensure continued improvement. Financial systems had also improved with a new head, good direction of travel and consideration being given to changing the current financial system to one more appropriate for the size of the operation and which would improve visibility. The accounts were expected to receive an unqualified sign off. The WLWA hoped to be more transparent and to engage more fully with staff from member authorities. Reports on issues would receive wider discussion prior to publishing. New contracts were being procured separately, with assistance from a pool of officers. A review of recycling centres was also be conducted with the aim of increasing efficiency.

In questioning Jim Brennan, members of the Committee queried the extent to which he was confident that there would be no further requests for additional funding and the reasons for using the current financial system. Questions were also raised on proposals to divert 96% of waste that could not be recycled by boroughs from landfill through an energy recovery process and members cautioned against the use of gassification to which Jim Brennan responded that residents would be incentivised to reduce the amount of residual waste. He could give no absolute guarantee of the future but controls were in place where appropriate, particularly audit control and risk monitoring. The WLWA had historically used the finance system of a member authority whose Director of Finance had been WLWA treasurer however options were being explored for an alternative independent finance system that could be more streamlined, accountable and bring savings. Consideration was being given to which services could be brought in-house and which bought in and Jim Brennan reminded the committee that there were the advantages to the latter in terms of getting a broader perspective and having access to high level of expertise for a relatively low price.  A report on the proposals would be submitted in due course.

Questions were raised on budget monitoring, the raising of purchase orders, the realisation of expenses and arrangements for dealing with outstanding invoices particularly in bulk to allow timely review by member authorities. Jim Brennan responded that the budget position was reported monthly to WLWA meetings and shared with boroughs. He acknowledged that currently a high number of purchase orders were being raised and it was the intention for this to be reduced. A system was required to deal with larger contracts. Consideration was being given to ways of making the process more transparent to allow boroughs to query. The committee heard that the WLWA finance team was responsible for the veracity of the budget figures and member authority officers acted as critical friends. The Strategic Director, Environment and Neighbourhoods, Sue Harper, contributed that Brent officers reviewed the budget and the actuals on a monthly basis. A quarterly reconciliation statement was agreed.

In response to questions concerning the management of the accounts in the past, Jim Brennan repeated his acknowledgement that the systems previously in place were not fit for purpose and changes and additional expertise had been introduced in March 2012. Savings were anticipated from processing costs which would be evidence at year end. There were additional pressures from HMRC rule changes and contractor price increases but these were considered manageable.

Members drew attention to the loss in DIY waste disposal revenue and a whether this could be linked to the perception that fly tipping, including builders rubble, was increasing around the borough. Jim Brennan responded that this had been raised but was not supported by evidence.  Sue Harper agreed that this was an issue for discussion. Brent’s charging was now in line with those in other boroughs and there was currently no specific evidence of an increase in DIY dumping.

The committee discussed the ethics of generating energy from waste and concerns over the technologies involved, the generation of nano particles and EU compliance. Jim Brennan responded that the plant concerned in Avonmouth, had the appropriate planning and environment technology controls in place. The waste levels had been reduced by more than 50% and so the amount sent had been kept to a minimum. Research had been conducted into increasing capacity if necessary. Jim Brennan advised that consideration was also being given to carbon impact modelling. The WLWA was in competitive dialogue with SITA UK Ltd (appointed as the preferred bidder for the residual waste services procurement) over cost reducing measures.  It was hoped the contract would be signed in October with the service starting in January 2014. Transportation by train would continue. Members stressed the value of publicity campaigns to influence residents to reduce their waste streams and were pleased that recycling was increasingly the social norm.

The committee thanked Jim Brennan for his attendance and contribution.

RESOLVED:

that the report and briefing be noted.