No movement on tender for recycling

Photo: ODT files
Photo: ODT files
Controversy around the future of the WasteNet contract continued yesterday as the parties involved bit back at allegations following the release of more information.

The contract, which Southland Disability Enterprises (SdE) had had for the past eight years, has been up for tender since the end of last year.

SdE at present employs 82 people with disabilities to work on the recycling contract, but as the contract is due to end on June 30, time is running out.

WasteNet is the group that tends to Southland's recycling, and is jointly managed by Invercargill City Council, Gore Council and Southland District Council.

Invercargill councillors on Wednesday heard submissions from three family members of individuals employed at SdE before voting on whether to approve recommendations from the WasteNet Advisory Group on a preferred tenderer.

On Thursday afternoon, a press release from Gore Mayor Tracy Hicks and Southland Mayor Gary Tong was issued, which provided information about SdE and why it was not the preferred tenderer, including claims of stalled financial negotiations.

SdE chairman Stephen O'Connor yesterday said the two mayors' statement was "not an accurate account" and "misinformation" had been circulating about the negotiations.

"To date, WasteNet and the three councils have showed no regard for the job security for the SdE workers. As SdE has long suspected, the issue is about money, not the people."

SdE issued its own press release yesterday afternoon that disputed much of what was written by the two mayors.

Some of the points that were challenged regarded financial aspects of the release. The two mayors said SdE wanted "more money for less production", however, Mr O'Connor said WasteNet asked for a price based on an increased 9000 tonnes per annum compared with 7000 tonnes it received now.

It also said the current contract was $1.36 million per annum not $1.13 million as stated in the mayors' release.

In response, SDC released a second statement that said both Mr Tong and Mr Hicks stood by what they had said in the earlier release.

"However, we are not going to engage in a tit-for-tat debate as we believe it will further damage ongoing relationships, and add extra stress and confusion for everyone.

"We have asked our staff to fast-track the review of what further information can be released without jeopardising any future decision around this tender process, which remains live."

Invercargill councillor Karen Arnold voiced the intention to resign since Wednesday's meeting, saying she had lost confidence in the council's decision-making process.

While the tender process had been active, WasteNet spokesman and Southland Mayor Gary Tong said there was very little he could comment on.

Late last month, SdE chose to break confidentiality and inform staff the contract was, at that time, likely to go to another tenderer.

There had been criticisms and concerns raised over the transparency of the process.

On Wednesday, the Invercargill council eventually decided to debate the issue privately and vote in public over whether to go with the other tenderer. Its identity is not public information.

After two and a-half hours of discussion and debate, the council was split evenly and the decision came down to Mayor Sir Tim Shadbolt who voted against the recommendation.

SdE general manager Hamish McMurdo said there had been no formal communication with anyone from any council or WasteNet since the meeting on Wednesday, but that he was keen for a conversation to be had.

"It's the only way to move forward," Mr McMurdo said.

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