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Government to withdraw 5.7m waste disposal subsidy

Tuesday, 18 December 2012

Government’s £5.7 million annual waste disposal subsidy for Local Authorities and private businesses is to be phased out over the next 6 years, the Department of Infrastructure announced today, 18 December.

The move, approved by the Council of Ministers, will save the taxpayer an additional £1 million each year between 2013 and 2018. At the end of the period the Island’s Local Authorities, which are legally responsible for domestic waste collection, will be paying the full cost of disposal at the Energy from Waste facility.

Infrastructure Minister David Cretney MHK explained

'At a time of considerable pressure on budgets, the public expects Government to prioritise its spending to support frontline services.’

The Minister added

‘The Department is keen to empower Local Authorities by giving them more control and responsibility for their finances and services. I have every confidence that they will respond positively to this challenge by working together to cuts costs.’

The Department says it cannot direct Local Authorities as to how they deal with the withdrawal of the waste subsidy. But if they chose to pass the cost straight through to householders it should mean a rates increase of around £11 annually for 6 years for a typical 3-bedroom terraced house, with an average increase of around £22 per household per year. Local authorities have benefited from subsidised disposal costs since the Energy from Waste facility opened in 2004.

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