Way cleared for refuse service sale

PLANS BY Cork County Council to sell off its refuse collection service have moved a step closer to realisation after workers …

PLANS BY Cork County Council to sell off its refuse collection service have moved a step closer to realisation after workers voted for a package that would see them either redeployed or paid redundancy if the service is sold to a private operator.

Siptu branch secretary Eddie Mullins said yesterday that the 52 members of the union involved in the collection service had voted by a clear majority to accept redeployment or redundancy if the service is sold.

The decision by Siptu members to accept the deal negotiated with Cork County Council management effectively clears the way for the council to seek a buyer for the service which caters for some 40,000 customers on established routes all over the county.

A council spokesman welcomed the outcome of the Siptu ballot and confirmed that following a review of the waste business, the council is close to finalising a decision in relation to its future.

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Last month, Cork county manager, Martin Riordan explained that the service had become unsustainable for the council after an EU directive which came into effect in July obliged the council to charge VAT for the service in line with private operators.

However, given that the council had decided at the start of the year not to increase its price, the VAT directive meant the council has to carry the VAT charge itself for half the year at a cost of €750,000.

Already it is carrying a further €1.9 million in lost revenue on the service due to a waiver system it operates which is availed of by some 10,000 its refuse customers, said Mr Riordan.

Barry Roche

Barry Roche

Barry Roche is Southern Correspondent of The Irish Times