Majority of respondents to a CIWM Journal Online poll agreed with the DCLG in its decision to not provide Norfolk County Council with financial aid over its ditched energy from waste plant in Kings Lynn.
Leader of the Council, George Nobbs, wrote to Prime Minister David Cameron and other government ministers to ask for financial assistance in relation to the cancellation costs (circa £30m) of the contract, citing the inaction of the Secretary of State for Communities, Eric Pickles (pictured).
Norfolk County Council’s proposed Kings Lynn waste plant was ditched on the grounds of failure to secure satisfactory planning permission, after Pickles failed to reach a decision.
The cost of terminating the contract is estimated to be £30.26m, comprising capped compensation to the project’s consortium – Cory Wheelabrator – of £20.3m, contractor public inquiry costs of £1.6m and exchange rate and interest rate related costs of £8.36m.
64 percent YES
36 percent NO
In response to the plea, Baroness Stowell stated: “The details and clauses of any local procurement contract are a private matter between the relevant parties. It is for the local authority to assess the risks and benefits of any local contract prior to agreeing to it.
“Therefore any need to pay a cancellation penalty is a private contractual matter and is for the local authority to consider how to meet such costs.
“It is not appropriate for national taxpayers to provide funding for penalty costs, should they arise, from locally-procured contracts.”
CIWM Journal Online asked its visitors whether they thought the DCLG decision was justified.
Sixty four percent of respondents were of the opinion they it was, while 36 percent said the DCLG was not right to refuse financial aid.
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