Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 10: To ask the Minister for the Environment; Community and Local Government his plans to restructure the waste management market; and his plans to place control on the market with local authorities. [30318/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The programme for Government contains a commitment to introduce competitive tendering for household waste collection, by which 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 process on the issues involved, designed to inform the policy development process, has recently concluded. The responses received are being examined and I intend to bring policy proposals to the Government before the end of the year.

The role of local government in the waste collection system has changed considerably in recent years. Most local authorities have withdrawn from the waste collection market and no longer offer a service to householders. A number of local authorities have entered into arrangements to sell their household waste collection service to private sector waste collectors, in effect transferring clients to a private sector collector.

Section 33 of the Waste Management Act 1996 requires local authorities to provide household waste collection services unless specified conditions, including unreasonably high costs, pertain. The future role and responsibilities of local authorities in the household waste collection sector, including in any system of competitive tendering, is under consideration in the context of the policy development process to be concluded by the end of the year.

Brian Stanley (Laois-Offaly, Sinn Fein)
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My question was motivated by the fact that in housing estates one could have up to four collectors driving in and out on the same morning, which is not best practice. My question is whether the proposed change will damage competition and if there will be significant price increases. The Minister appears to suggest local authorities would licence one operator for Kilkenny, Drogheda or wherever else and that it would have the franchise for the area. What measures are being taken to prevent that from happening? What guidelines are in place for operators? Will local authorities control the franchising of the service? Will Louth County Council or Drogheda Borough District Council be responsible for the waste collection service in Drogheda? I would welcome more detail in that regard.

Has the Minister advanced any plans for a waiver scheme for low income households as part of the review process? Some local authorities provide waiver schemes for pensioners and other low income households.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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As part of the review, I am considering a waiver scheme for low income families. There is an Ombudsman's report on the matter which will feed into the process. The intention is to regulate the market in such a way that we can achieve maximum efficiency and, therefore, reduce prices.

We must also be mindful of the fact that under the landfill directive, we have to move away from landfill. Therefore, we have to find greater means of recycling. We must deal with and dispose of waste other than on landfill sites. There are big issues to be considered. I am conscious of the fact that we need a competitive tendering arrangement to keep prices as low as possible and include a waiver scheme for people on social welfare, those living alone or on low incomes generally.

Niall Collins (Limerick, Fianna Fail)
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This week I met the largest service provider in the Limerick region, Mr. Binman. The company had to apply for examinership last week and is now in the examinership process. I am sure the Minister is aware of this. The case is due for mention in court tomorrow. It is a family business with more than 300 direct employees and more than 300 indirect employees. It is an employer of major significance in the region, with 65,000 customers who are happily served and are happy to continue their custom with the company. We all hope it will come through the examinership process successfully. I met the company to discuss a number of issues. I referred to the consultation process which the Department was undertaking in the context of the issue raised by Deputy Stanley of licensing a single operator in an area. It was indicated to me that the waste collection service had originally been acquired from Limerick County Council and Limerick City Council when they opted for privatisation. An issue arises for service providers which, as they see it, have purchased an asset they are now entitled to utilise and on which they seek a return. I wish to inform the consultation process in that regard.

Joan Collins (Dublin South Central, People Before Profit Alliance)
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We used to have a well regulated waste disposal service before 2000 when the bin tax was introduced. Does the Minister expect private companies to challenge the new system that it is intended to franchise? Is he aware of the significant opposition to Dublin City Council's move towards tendering from 5 December when the waste collection service will be privatised?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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It is a matter for Dublin City Council to decide the collection arrangements for households. It is working on the basis of existing policy, but it must also be mindful of the draft document issued for consultation. What we are trying to do is minimise the volumes of waste generated in the first instance, as we wish to divert waste away from landfill. We also wish to maximise the value from waste because it is no longer just a product for disposal; it is a resource in which so many people are interested in developing technologies to generate businesses from waste disposal. The aim is also to achieve a positive environmental outcome.

I take on board the concerns of people living in the Dublin area in which there is uncertainty. I have gone through the consultation process and I am considering the submissions made. I will not delay in removing the uncertainty between now and the end of the year.

In response to Deputy Niall Collins, I am also conscious of the fact that people have invested a significant amount of money in infrastructure in recent times, not just confined to the Limerick area but throughout the country, and that this must be taken into account before a final decision is made.