A COUNCIL-OWNED waste disposal company is facing the threat of insolvency in 10 months, a confidential report reveals.

Urgent talks are taking place to bring AD Waste back under direct Flintshire County Council control, which would transfer the firm’s 47 workers, mainly binmen, back to the council.

AD Waste was set up 17 years ago as an “arm’s length” limited company, wholly owned by the council to collect and dump rubbish and run its recycling and civic tip sites. A consultants’ report on AD Waste says it has been a well-managed company.

But the company’s two landfill sites are full and it has to pay to haul thousands of tonnes of Flintshire’s waste outside the county to expensive landfill sites, mainly in Wrexham.

Its contracts with Flintshire end in September 2009, but its application to develop a state-of-the-art recycling facility and a new landfill at Alltami has to be decided by Flintshire council.

Preparing the applications has cost AD Waste £200,000 and developing the sites would cost a further £1.5m.

At the end of the last financial year the company submitted a claim to the county council to cover in-year losses of about £248,000. These losses have already been included in the council’s 2007/8 accounts.

The executive has been advised there may be further losses in the current financial year of £500,000.

A confidential report to Flintshire’s executive states: “This position is no longer sustainable and...on this basis the company will remain solvent for only 10 months.”

If the firm becomes insolvent, all operations will cease, all assets will be frozen and the council will have to make alternative arrangements for day-to-day waste collection. It would also inherit liabilities such as the long-term care of the worked-out tips.

Flintshire also needs to keep its options open for when local authorities in North Wales work out their long term strategy or waste disposal.

Flintshire’s Executive is understood to have accepted a recommendation that AD Waste be taken “in house” – back under direct council control. If workers are transferred back to the council, their pay and conditions have to be protected.

Nobody at Flintshire council yesterday was willing to discuss the issue.

Carl Longland, Director of Environment said: “The Council’s Executive considered a confidential report regarding AD Waste and it would be inappropriate to comment further at this stage. However, we will be meeting with AD Waste next week to discuss matters and anticipate making a joint statement about the situation. In the meantime, we confirm that AD Waste will continue to perform in its role as contractor to the Council and carry on its trade as normal.”



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