Pulling plug on two incinerators could cost £10m

York councillors will decide next week on their next steps over the Allerton Waste Recovery Park, a proposed incinerator scheme in partnership with North Yorkshire County Council and waste company AmeyCespa, which was dealt a major blow earlier this year when Ministers decided it would no longer qualify for Government support.

Planning permission for the site, close to the A1, has been granted but the decision is being challenged by Marton cum Grafton Parish Council.

The terms of the two councils’ agreement with AmeyCespa means that they must decide whether to continue with the contract.

Failure to secure planning permission would leave the two councils liable for a payment of £3m on top of money already spent developing the scheme.

And it has emerged that if the scheme does not ultimately go ahead that sum will increase to £5m.

York and North Yorkshire County Councils have been granted permission to bring a judicial review over the Government’s decision to withdraw funding for the project.

Bradford and Calderdale Councils are also taking legal action against the Government over a similar project which was affected by the same decision.

Bradford Council has previously said it had spent £5m before the Government decided it was no longer backing the proposal for a new waste facility in the Bowling Back Lane area of the city.

Roger Ranson, assistant director of city and environmental services at York Council, said: “A report will be taken to Cabinet on October 1 which will recommend the continuation of the contract between North Yorkshire County Council and AmeyCespa regarding the long-term waste service for York.

“Due to the planning status of the Allerton Waste Recovery Park, a decision is required on the options available by York and North Yorkshire authorities. Officers believe the Allerton Waste Recovery Park continues to be viable in planning terms.

“In the absence of an agreement between NYCC and AmeyCespa, terminating the contract would cost the authorities £3m, as well as writing off the money spent thus far.

“Work is continuing to move this project forward towards financial close and at that time a decision will be required by the council.”

The four councils were told in August that they would be able to bring cases against the Government.

Although the two cases are separate it is expected they will be heard at the same time. A date for the court hearing has yet to be set.

The Government has justified its decision to withdraw funding on the basis that the proposed incinerators are no longer needed to meet European Union targets on the amount of waste being sent to landfill sites.

The two Yorkshire schemes and a third on Merseyside were the only ones to have their funding withdrawn.

It is thought highly unlikely that either project could go ahead without the Government’s backing, making the outcome of the judicial review process critical.

If the incinerators are not built, the authorities will face both financial costs and will have to develop new plans for how to deal with thousands of tonnes of waste.

The Allerton Park scheme is also facing an inquiry by the European Union over whether Government support would contravene state aid rules.

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