Queenstown Lakes District Council announced yesterday that Wanaka Wastebusters has lost the Wanaka recycling collections and processing contract.
The council has chosen the cheapest price, but have they considered the best value for the community???
Who got the contract?
The contract has been awarded to Smart Environmental, an Auckland company who do Queenstown’s recycling. The contract is for six years, with a three year roll-over.
What does it mean for Wanaka Wastebusters?
Up to nine people will lose their jobs on the truck and doing the sorting. Around 50 percent of Wanaka Wastebusters’ income comes from the recycling contract, so it is a body-blow to the community organisation.
We are innovative and we do have other education/awareness contracts. Wastebusters’ strength is that we do both: we are rooted in the practicalities of running a recycling centre and we can turn that practical experience into behaviour change programmes. Without the kerbside contracts, we will be less able to do this or to protect Wanaka’s reputation through recycling at events such as Warbirds.
How much cheaper did Smart Environmental come in at?
Our price for the next six years ($575,649 per year) was substantially less than our current recycling price. We think it was a very fair and realistic price. According to a report in the ODT, Smart Environmental came in at $301,400.
That figure doesn’t make sense to us given that it costs $1.25 million now to do the same job in Queenstown – with a population of 9,290 households compared to about 5,788 households here. How can it be that cheap in Wanaka, compared to Queenstown – when the recycling needs to be trucked over the Crown Range?
The difference works out to $18* per household per year. Many people are telling us they would be happy to front up with $18 to keep Wanaka Wastebusters doing the local recycling.
What are the impacts on the local economy?
Up til now, the money that Wanaka ratepayers paid for recycling stayed in town, and was spent on jobs, and local services and products eg mechanics, uniforms, freight, accounting services. This decision means that most of the money will now go out of town to Queenstown and Auckland.
We’ve worked out the impact on our local economy*. Wanaka Wastebusters would have put $4.1M directly into the Wanaka economy over nine years. Using a NZ research figures, we estimate Smart Environmental would only put $597,000 into the Wanaka economy over nine years.
Is it fair?
The annual recycling services budget for Queenstown is $1.25M (from infrastructure services committee minutes). The price quoted for new recycling services in Wanaka is $301,000.
1/3 of the district’s people live in Wanaka, 2/3 live in Queenstown. Everybody pays the same for their recycling services across the district – so Wanaka pays 1/3 of the QLDC recycling budget and Queenstown pays 2/3.
Wanaka gets 1/5 of the services and Queenstown gets 4/5.
This doesn’t seem fair.
Dedicated to recycling
We pride ourselves on producing a very clean, high quality product. Wanaka Wastebuters has never gone back to QLDC to ask for more money during the contract period, or had any difficulties which have resulted in more money being spent by QLDC.
The following media reports highlight issues with Smart Environmental’s recycling in Queenstown:
- 04th Feb ’09 “A recycling company’s request that the Queenstown Lakes District Council take on some of the risk in its recycling contract by offsetting losses was rejected by most councilors on the utilities committee.”
- 11th Feb ’09 “Splinters of broken glass could add over $20,000 a year to the Queenstown Lakes District Council’s waste collection costs, as its state-of-the-art recycling plant struggles to sell recyclable paper.”
- 04th March ’09 “A decision to reject any potential to change a recycling contract could create legal difficulties for the Queenstown Lakes District Council unless revoked.”
- 04th Dec ’09 “The Queenstown Lakes District Council will have to spend an extra $15,000 to recycle its glass, but it says it’s not alone with its problem of staying green.”
Ends
Sue Coutts, General Manager: (03) 443 8606 x 9, 027 322 9675
Gina Dempster, Communications advisor: (03) 443 8606 x 8, 027 443 7116
* using QLDC Growth Projections Report, 2011 for number of households.
** Recycle Town”, by Gary Kelk in assoc with Dr Warren Hughes of Waikato University. The research calculated that a locally-based community recycler funnels 80c from every dollar they earn back into their community. A NZ owned recycler spends 22c from every dollar in the local community.
Click here to read the press release from Ross McRobie – Chair – Wanaka Wastebusters
Click here for printable pdf – Lost Contract Q&A’s
This is a dreadful decision. Our elected representatives need to realise that they are elected to make good decisions for our community, based on what is best for our community, not based on fiscal responsibility alone. Having said that, I don’t see how the figures can possibly make sense. It would be nice to know what the total agenda is on this.
I am GUTTED for you guys. This is a local initiative that has performed on the national stage built with the voulenteer sweat of locals which has been kicked in the guts by a locally elected councillor. Liar Cocks should fall on his sword. I have already been to fill in my thoughts at the council office and was handed a scribble pad to write on. Shame. Shame. Shame. Yet another local business which is seen as expendable. When will they learn! Keep me informed. Would it help to encourage all locals to bring in their recycling to you directly. Love and good vibes to you all. Calum
I’m shocked, absolutely shocked, to hear that Wastebusters lost the kerbside contract in Wanaka. And lots of question I like to have an answer on….
Its always Queenstown against Wanaka in all kind of local issues and I’m getting pretty frustrated about that, living here now for 6 years. Even ask myself the question if I want to live in Wanaka anymore………
No problem to pay 18 NZD per year more to keep recycling in Wanaka.
What about business recycling ???
I’m involved in recycling for one of the biggest holiday parks in Wanaka and in high season we are one of the biggest recyclers in Wanaka !!
If we have to help out in any way, just let me know.
Kind regards,
Harry Kegel
This is outrageous. It is our rubbish and “our” organisation. Wanaka Wastebusters is one of the icons of Wanaka (like Paradiso, who the council only seems to want to stonewall too).
What can we do to reverse this decision?
Dreadful news. So gutted at the short-sighted, narrow-minded, Divisive decision making involved. Shameful and sad.
PETITION PETITION PETITION!!!!
RD (the flying kiwi from Wanaka…in London)
So sorry to hear that guys – you’ve got such a reputation far and wide with those of us into recycling AND community development. We can only hope that our Council here in Porirua won’t make a similar crazy decision about our wonderful Trash Palace.
It took me a couple of hours to work this out with about the same accuracy figure throwing as the council gave the press today.
Lets not loose Wanaka wastebusters until we see the greater picture $1.25m for recycling Queenstown’s recycling no wonder they can under cut Wanaka Waste Busters.
So if smart recycling can charge $310 000/ year for wanaka why isn’t the cost for Queenstown recycling $700 000 not $1 250 000 Oh yes! so they can make $400 000 a year and tread all over wanaka rate payers yet again. Its not just about being green its about playing on an even playing field.
Maybe the Qldc should invest $200 000 in Wanaka waste busters to run Queenstown’s recycling maybe that could save us rate payers $200 000 next year and $3 900 000 over nine years. I think lyle cocks isn’t looking after our fiscal responsibility at all.
I think there is a nice big can of worms to be opened here!
can openers to the ready …….
Sad to see what looks like brown envelope politics arriving in your part of New Zealand. This decision smells of one or two people in politics, in the council, getting a personal pension boost to take on this contract change. I feel its not or very little to do with cheaper pricing. This has happened a lot in Ireland, another small population country, where politicians are retiring on pensions greater than those in the high population countries of USA and UK. … due to brown envelope deals like this.
Don’t let this stain your community. Rally round and even set up an alternative kerb service independent of government. This can be won by you.
Wishing you all the best of success.
One idea I put to Ivy is how our kerbside collection is done in our part of Ireland. Council have nothing to do with it, though I suppose they have to approve licences. We buy bags from local village shops and pubs for €5 and they earn €1 commission. We fill them with recycling and they are picked up at the kerbside once every 2 weeks. There’s no council billing involved. The recycling company gets their income from the sale of bags. Could you do that?
We also have independent run recycling centres that cost €4 a visit to use for all we can fit in a car or small van. Large vans are charged €8 a visit. That’s cheaper than the bag based kerb collection but its more effort, petrol costs and time. I find myself doing both. For some reason the recycling centres are now allowed to sell visiting tickets but we can buy books of 5 tickets for €20 from small shops and pubs and they earn €4 commission per book.
A couple of ideas you may be able to set up as an alternative truly community based recycling service independent of government and council, and refuse to pay the council a recycling fee as you use an alternative. That should be interesting if it got to court.
Win this guys, you must !!!
Oh dear, why would you want to send local rubbish to Auckland. Backhanders maybe? This has been an outstanding community initiative for years, run by local people for local people. It is an example of what can be achieved in community spirit, for the benefit of the community. Like Paradiso, another Wanaka icon, these were the initiatives that came about because of the kind of people that Wanaka used to attract. It wasn’t about money only, but much more about heart first and money later. They showed that it can be done, that you can be successful whilst working from a humanitarian perspective first. Keep the heart in Wanaka.
Unbelievable! You guys TAUGHT qldc how to recycle. The tail that wagged the dog. You do a brilliant job. You are motiovated. You are efficient with your time and you behave with A+ integrity with matters of business. You are involved in every wider community initiative and you are inspirational. QLDC mean well but they have simpky got it WRONG. They simply dont get it….. yet.
This decision has to be reversed. It is ripping the very heart out of Wanaka. The Wanaka Community Board can move mountains and with a huge town centre protest coupled and with relentless pressure it will be a brave politician that supports the councils decision.
Roger North
We need to keep ringing smart recycling on 03 451 0105, & QLDC 03 441 0499, wear them down with constant daft questions.
Copy of email I sent this morning to Lyal Cocks cc the MayorHi Lyal,
“As you are aware I have been a strong supporter of your good work as a councillor and community board member in the past and I have had confidence in your ability to make good decisions based on what is best for the community as a whole.
However the decision you have made resulting in Wastebusters losing their contract is so ‘massive’ to me that I have now lost confidence in you and I will not be voting for you again.
Call me petty Lyal, but this decision goes against the heart of why I choose to live in Wanaka in the first place, we are a community driven town and Wastebusters is the heart of our community and an example that money is of secondary importance.
Wastebusters was an example of Wanakas ability to be UNIQUE, when I think of the loss to the community because of this poor decision it saddens me greatly.”
Rubbish! What a poor decision it is!
As Roger says above, Wanaka Wastebusters taught QLDC how to recycle. QLDC those days were keen to see money coming in from developments and didn’t see our/our kids’ future. It was Wanaka Wastebusters of those days that started recycling in Wanaka. They were volunteers with pioneering spirit which has been passed onto what they are today. Wastebusters has built the foundation of recycling physically and mentally, locally and nationally. They deserve the praise and support from QLDC for what they have done, not a slap like this.
If the management of QLDC needs to cut back the expenditure, they need to review their own performance first and see how they can be practically more efficient and cut back their own salary for the rate payers. That is what a private corporation will have to do. This is a very short-sighted, narrow-minded, not so smart capitalistic decision.
Hisashi “Bruno” Sasaki
“Many of the best things in this country happen when groups and communities are empowered to pursue their own projects. Passion and commitment are unleashed, and pride and creativity.” From an article by historian Dame Anne Salmond. She thinks, unlike some of our counsellors, that we need more heart, not less.
Price is always a factor in whether it is feasible to take on a contractor and also whether you are getting value for money.
The tender from the new company is in my opinion highly suspect being so much cheaper than both the existing contractor, Wanaka Wastebusters, and the service this new contractor is currently able to offer in Queenstown. Along with others I ask the question “how this is possible”.
Then we look at the long-term investment and benefits to the community and we can clearly see that the new contractor isn’t going to be doing this anywhere on the level that is currently happening from Wastebusters so the long term benefits are just not there.
On top of this, it seems in stark contrast to what the council purports to be doing in relation to marketing this town both as a place to live and a place to visit.
Wastebusters – A Wanaka icon, look at the comments above and where they are coming from, around the country and internationally.
Education – helping the public to make better choices and running initiatives such as smart recycling purchases and composting etc
Job Creation – Local employment for local people with the potential to expand the operation and services in the future.
Council’s should be encouraging job creation and I see no evidence of it! Who is is charge of job creation in the QLDC region? This is a travesty and not supportive of local needs so I challenge the council to let me know what they are doing to support Wanaka with jobs, education and tourist draws that have not already been put in place by business.
Shame on you! This is a deliberate plan to put WW out of action. In six years time the contract is up and it will cost more to re-new it, there’ll be no local option in place so we’ll all have to swallow the additonal 200% increase or whatever it will be in costs because there is no competition left as they were put out of business.
Disgusting!
Shocking that such a worthwhile organisation can be treated so poorly by elected representatives. This decision must be evaluated financially by a more skilled group of locals in authority.
New Tui Billboard needed:
Lyal Cocks – I am totally committed to working with our community on the issues and projects that impact the Wanaka Ward
Yeah Right.