Decision details

Date of Decision:

21 June 2018

Decision Maker:

(Including Job Title)

Damien Wilson

Strategic Director of Regeneration and Environment

Specific Delegation:

(If any)

General delegations to officers in Scheme of Delegation

Finance and Procurement Procedure Rules

Brief Description of Decision:

To accept a reduction in the contract price that Newport Paper pays the Council for its kerbside collected recycled paper and cardboard from £60 to £25 per tonne with effect from 1 April 2018

To issues a contract extension of six months to Newport Paper to run from August 2018 to January 2019 at an agreed price per tonne of £25.

Reasons for the Decision:

In February 2018 the Council received a request from Newport Paper PLC for a reduction in the contract price they pay the Council for kerbside collected recycled paper and card. This was due to the restriction of China’s import markets, the subsequent glut in paper available in the internal and European markets and a drastic fall in price paid by processors of mixed paper.

Details of alternative options considered and rejected:

To ensure best value for the Authority and to check the validity of the company’s claims officers undertook a market sounding exercise to establish what other prices could be obtained. This also ensured that the Authority had options to be able to continue to provide a recycling collection and disposal service of residents’ recycling should the company fail in its contractual obligations and walk  away from the contract. After obtaining alternative disposal options, it was clear that the new price of £25 per tonne, fixed and guaranteed from April 2018 to January 2019 was the best option.

Conflicts of interest declared by any Executive Member consulted by the decision maker which relates to the decision:

None

Dispensations Granted:

(If any)

Nil

Reports or parts of reports considered

Newport Paper Price Amendment Report