Job fears as waste contract switched

Clean Streams is owned by Te Rarawa iwi and community environmental group CBEC. Photo / Thinkstock

A Kaitaia-based waste management company has lost out after the Far North District Council reassigned its two five-year contracts worth $9.3 million.

The move has raised concerns that several people employed by Clean Streams, which held the northern area contract to manage rubbish sites, collections and related operations for 20 years, will lose their jobs now a new contract has been given to Northland Waste.

Northland Waste will be paid $4.6 million for the new contract, a saving for ratepayers of nearly half a million dollars a year, or $2 million over the contract period, according to Far North District Council.

Clean Streams is owned by Te Rarawa iwi and community environmental group CBEC.

A spokesman said the company was unable to make a comment at this stage. The Far North council has rejected criticism led by the Green Party that "a pioneering and innovative community and iwi owned waste management enterprise" has been dumped.

FNDC acting chief executive Colin Dale described the arguments as "emotive".

He said the contracts decision was made after both companies took part in a competitive bidding process and was based on the council's duty to save money where possible. There had been no dissatisfaction with Clean Streams' and CBEC's long service, and acknowledged the company's past leadership role in waste management initiatives, Mr Dale said.

"However the price differential between the tenderers of over $2 million cannot be ignored. The emotive arguments in favour of retaining a long-standing and Far North-based contractor in the mix have to be balanced against the council's fiscal responsibilities to the ratepayer," he said.

Greens spokeswoman Denise Roche said Clean Streams had worked closely with Far North communities on waste minimisation projects and was leaving "big shoes to fill".

The council is hopeful its employees will be picked up by the new contract holder. The FNDC will also work with both companies to ensure a smooth transition of service when the contract comes into effect on October 1, Mr Dale said.

The $4.7 million contract for the southern half of the district has remained with current contractor Waste Management.

Both contracts cover the operation and maintenance of transfer stations and resource recovery centres, recycling, transporting non-recyclable waste to landfills for final disposal and the removal of illegally dumped refuse.