Dáil debates

Thursday, 15 September 2011

5:00 pm

Photo of Derek KeatingDerek Keating (Dublin Mid West, Fine Gael)
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Question 7: To ask the Minister for the Environment; Community and Local Government the control that he has over the imposition of charges by private contractors who are replacing the local authority refuse collection service; and if he will make a statement on the matter. [24238/11]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Question 10: To ask the Minister for the Environment; Community and Local Government his plans to introduce competitive tendering for the waste collection market; and if he will make a statement on the matter. [24089/11]

Photo of Derek KeatingDerek Keating (Dublin Mid West, Fine Gael)
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Question 39: To ask the Minister for the Environment; Community and Local Government in view of the fact that the private refuse contractor (details supplied) has imposed an administrative charge of €60 per household in Dublin, his views that this contravenes his policy of polluter pays; and if he will make a statement on the matter. [24237/11]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 7, 10 and 39 together.

As the waste collection market is currently structured, the pricing schemes used by private waste collectors are a matter for determination between the service providers and consumers of the service, subject to a service provider's collection permit and other legal responsibilities being complied with. The Waste Management (Collection Permit) Regulations 2007 provide that a permitting authority must require a permit holder to apply charges for household waste collection which respect the polluter pays principle. Any consumer who is dissatisfied with the service currently provided to them may consider switching to an alternative service provider, although this may not always be a realistic option in certain areas.

As regards policy developments in this area, the programme for Government includes a commitment to introduce competitive tendering for household waste collection, whereby service providers will bid to provide waste collection services in a given area for a given period of time and to a guaranteed level of service. A public consultation designed to inform the policy development process has recently concluded. The responses received are currently being examined and I intend to bring policy proposals to Government before the end of the year.

An objective of any such policy will be to help ensure that households and service providers are incentivised to behave in a sustainable fashion. Pricing structures more closely aligned with the polluter pays principle are one such method of driving improved environmental performance.

Photo of Derek KeatingDerek Keating (Dublin Mid West, Fine Gael)
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The Minister will be aware that I was a member of South Dublin County Council for 12 years. After many years of effort, we eventually implemented the polluter pays principle which, as the Minister's response demonstrates, is the only acceptable solution to waste management. I was horrified to learn recently that many of my constituents in Dublin Mid-West and throughout the south Dublin area have received notices from Greyhound, which succeeded South Dublin County Council in providing waste collection services, about its intention to impose an annual administrative fee. Not only does this outrageous development represent a retrograde step but it was given at such short notice that the many people who are have lost jobs or suffered loss of income will be hard-pressed to pay the fee in addition to their regular collection charges. The fee is not environmentally friendly because it is against the polluter pays principle and I ask the Minister to send a clear message that it is not acceptable.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I share Deputy Keating's surprise and disappointment that an individual company used the fact that we are diverting waste from landfill to other parts of the waste hierarchy to take this course of action. I will examine the situation outlined by Deputy Keating in the context of the review of waste policy and reach a conclusion by the end of the year.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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I ask the Minister to clarify his intentions on competitive tendering. Does he intend to issue competitive tenders for waste collectors to become sole operators within the relevant local authority administrative areas? If that is the case, he needs to ensure the customer's interest is protected in terms of competition and service levels.

A number of operators provide waste collection services in my own county of Limerick but none of them will travel to certain parts of the county. If a company is licensed to be the sole operator, there are implications for price and service levels, particularly in rural areas. The Minister ought to give further consideration to the matter.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Deputy Collins is correct in regard to the difficulties we may encounter in resolving this issue. The issues he outlined are arising elsewhere but I am aware of one provincial town which is served by 14 waste collection companies, five of which collect from the same estate. That is not sustainable nor is it in the interest of the companies concerned. I am considering the idea of franchised areas in which companies would compete to operate for a defined period, subject to certain quality provisions, or some alternative methodology.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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Will the price be fixed?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Issues of competition arise and the report of the Competition Authority makes it clear that local authorities are getting out of the market because they cannot compete with private operators in terms of delivering quality services.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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I have always been opposed to the privatisation of services in urban areas, even if we can argue until the cows come home about the country. Dublin City Council has indicated that it is giving consideration to privatising its service. That is already a stark reality at South Dublin County Council where a standard charge is being imposed and where there has been a move against all the principles in terms of the polluter pays, recycling and so on. Privatisation was sold in various locations on the basis that there would be adherence to those principles.

There are many people in receipt of waivers from the various local authorities who are struggling in difficult circumstances. I am not sure how much influence the Minister has in this matter but I urge him to put pressure on private companies to retain those waivers. We should not simply accept that such provisions cannot be accommodated in an open market; we must have standards to which we adhere, which accord with the principles that were presented to people.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Ombudsman issued a report some time ago advocating the provision of waivers in regard to waste collection. I am sympathetic to that position and have asked that it be taken into account in the context of the waste policy review I am currently overseeing. There are people who can afford these services and others who cannot. However, I am also concerned to have a comprehensive service in place. Deputy Niall Collins observed that some rural areas have no service at all. We must have a competitive, comprehensive collection system which allows us to meet our EU obligations in terms of reducing landfill by providing alternative waste mechanisms. Nevertheless, I will take into account Deputy Ellis's views in the context of the waste policy review.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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I am reminded of the old saying, "Oh what a tangled web we weave when first we practise to deceive". We have arrived at the current situation in regard to waste management as a result of decisions made by the previous Government and by members of the Minister's party in local authorities throughout the State. It was inevitable that we would end up with a situation where 14 different private companies are plying for business in the same area, or even the same street, a situation which is not in line with environmental policy regarding carbon taxes and so on.

In regard to the Poolbeg incinerator, does the Minister expect private companies to facilitate local authorities in administering the disposal of the waste at that facility or does he agree it is more likely they will take them to court again?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I had not heard that the Poolbeg facility is going ahead. Perhaps the Deputy has more information than I on this issue and is making an announcement here this evening. From my perspective, it is a matter for contract between a United States company and Dublin City Council. As a member of that local authority, Deputy Joan Collins will have been hearing reports about it on a regular basis. However, I have not heard whether this facility will proceed. When a decision is made on the matter, that will inform waste policy.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Will the Minister consider a system whereby private contractors would be encouraged to offer a waiver service? Many of them have been competing unfairly against the local authority system in recent years, putting councils at a disadvantage in the process and sometimes abusing competition law. In order to bring about a level playing pitch, would it be possible to take into consideration the provision of a waiver system when comparing tendering prices?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I already indicated to Deputy Ellis that I am sympathetic to this consideration and that, moreover, we are obliged to consider the Ombudsman's report on this matter which supports the provision of waivers, whether by public or private collectors. That report will inform Government policy in regard to the provision of waivers when we have completed our review of waste policy at the end of the year.

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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In regard to the waiver scheme, one of the problems is that it costs money in a situation where resources are extremely limited. I remain a fan of the polluter pays principle but there are limitations to it. It has been proven at this stage, as far as I can see, that if the polluter cannot pay, the polluter will, unfortunately, dump, and that costs a great deal to clean up. All one has to do is walk along the roads anywhere in the country when the grass is receding and the leaves falling from the trees to see the extent of dumping that is happening. People resort to desperate measures if they do not have the money to dispose of their waste legally. During my time as a member of Roscommon County Council, every one of the Fine Gael councillors made a call, every couple of months, for the Minister to introduce a waiver scheme. It was becoming very boring and repetitive. Ultimately, however, some type of scheme must be introduced, because it will cost more money in the long run not to do so.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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As I said, I am sympathetic to the consideration of providing a waiver facility for private and public collections, depending on income. I agree that indiscriminate dumping and fly tipping is happening throughout the country. It is also a question of reviewing our litter legislation and facing up to the cultural change that is required. People must be made to understand that this type of behaviour is anti-social and damaging to the environment, to our economic recovery and to the tourism potential of all counties, including Roscommon. I am looking at bringing forward additional measures that will concentrate the minds of those who engage in this indiscriminate activity. I am also very sympathetic to the possibility of a waiver system in the context of national waste policy.

Photo of Derek KeatingDerek Keating (Dublin Mid West, Fine Gael)
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I am sure the Minister is aware that many people are concerned not only about the introduction of this charge but also that it is likely to represent merely the thin edge of the wedge. It will be no surprise if we are back here next year discussing an increase in the stand-alone charge.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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That is a comment, not a question.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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While I fully agree that some people are driven to dumping because they cannot afford waste charges, there are others who can well afford them but choose to dump instead. In County Laois, the waste collection service has been privatised for 24 years and there has never been a waiver scheme in place.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It was my understanding that the Deputy's party held the balance of power on the local authority.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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I tried my best but there were 12 Fine Gael members and only one of me. There are many low-income households in Laois, particularly pensioners, who are struggling to pay waste charges. Will the Minister consider introducing a waiver scheme for a county like Laois where one has not been in place because the service was privatised many years ago?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I am sure there are pensioners and low-income families in every county. I am not in a position to ring-fence a national policy position for County Laois. I am sorry to disappoint the Deputy.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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I am sure the Minister would do it for Kilkenny.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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If it were apply to Laois, it would have to apply everywhere else.