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V26-549 : TRADING ACCOUNTS 1998/99

The Director of Waveney Contract Services circulated the Trading Account monitoring position sheet as at August 1998. The Director ran through the figures for each trading account, which with the exception of Refuse Collection, were on course to achieve the set targets.

A review of the Refuse Collection trading account had projected a deficit of between £25k and £30k at the end of the year. This was due in the main to a cumulative effect of a 43% increase in duty on fuel over recent years. In addition, as the freighters grew older, maintenance costs were also increasing. It was hoped that the opening of the reclamation transfer station facility would have some impact on this.

The Director of Central Services confirmed that investigations were in progress to establish whether a claim could be made against the contract as the duty increase had not been foreseeable at the time. Legal advice was that the contract did not provide for this, and the issue would be taken up with the external auditors, who were likely to refer it to the DETR for decision.

Members asked if other authorities were in a similar situation and if so could a combined effort have more impetus. The Director of Waveney Contract Services confirmed this to be the case with some others, and he would make further contact to pursue this.

Members reminded the Director of past discussions and reports on environmentally friendly fuels and asked had any progress been made. The Director relayed discussions with the engine manufacturers of the freighters and the suppliers of 'City' diesel, who had both agreed that the power of operation of the vehicles with high revving made that choice unsuitable as it would shorten the life of the engine and therefore increase maintenance costs further.

Members considered that the use of LPG and/or other alternative fuels was still an issue to be addressed, and the Leader of the Council commented that the matter would be taken up at the Policy Group.

RESOLVED

That the monitoring report on Trading Accounts be received.


Volume 26 Minute 549

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