Ballyduff Beg not a ‘white elephant’

CLARE county manager, Tom Coughlan has refuted claims that the provision of the central waste management facility at Ballyduff Beg, Inagh was a “white elephant”, following the resolution adopted by county councillors on Monday to close the landfill.
Mr Coughlan has also defended the original decision to locate the landfill away from main centres of population amid assertions from residents that it should never have been sited at Inagh when possible sites were considered back in 1999.
A special report presented for councillors revealed the net loss of closing the facility will increase from €1,606,000 in 2011 to €2.025 million next year, falling back to €1.745m in 2013 and 2014 and €1.2m in 2015.
This compares to a net loss of €1.605m increasing to €2.6m in 2012, 2013 and 2014 and falling slightly to €2.2m in 2015 if €4m is spent on developing Phase Four and paid back over four years. These projected figures are also based on the assumption that there would be no fall-off in commercial customers.
Mr Coughlan pointed out over 330,000 tonnes of waste has been landfilled since 2003 and the annual tonnage has fallen from a high of 58,139 to about 21,000 this year, making it uneconomical to continue at this level.
He recalled the council was placed in a difficult position following the High Court order to close the previous landfill in Doora and stressed the amount of waste being landfilled was three times more in 2003 than the current level.
Former Ballyduff Beg Liasion Committee chairperson, Perry Long claimed the facility was a “white elephant” as residents had consistently argued landfilling in Inagh would eventually prove to be uneconomical.
Ms Long recalled an EU directive on landfill was enacted into Irish legislation in August 2002, two months before the licence for Ballyduff Beg was approved, which set out a targeted reduction of biodegradable waste from 2000 to 2016.
She claimed Inagh was never a suitable location for a landfill because it was located at the periphery of the region away from the main centres of population in Limerick and South-East Clare.
In an interview with The Clare Champion, Mr Coughlan said the landfill has generated income of €35.6m and required expenditure of €26.5m, which netted substantial net income for the council, since it was opened in September 2002.
“It is easy to say in hindsight, it was a white elephant. I am confident that the decision taken at the time to build the landfill in Inagh was taken in the best interests of the council and the county.
“Ballyduff Beg would still be in business if market conditions hadn’t changed significantly to the extent they have, if the private sector didn’t become aggressively involved in landfill and if people weren’t recycling as much material.
“Conditions are substantially different today compared with 2003 and the council made its decision having regard to the circumstances at the time. If a decision hadn’t been made to open Ballyduff Beg, what would have happened to the 300,000 tonnes of waste that has been landfilled there?” he asked.
Regardless of where the council chose to locate the current landfill, he argued that obtaining cheap gates is now the factor determining the location chosen by private waste collectors who are prepared to travel over 100 miles to Monaghan if necessary.
He explained Ballyduff Beg couldn’t benefit from economies of scale because it is only half the capacity of other landfills. He also confirmed that contrary to some reports, the council did not engage consultants to advise them on the current course of action, which was based on the fact the business model isn’t sustainable in the future.
He said the council had been approached to fill Phase Three very quickly at a low price and it had to weigh up the increased costs of filling a cell slower and the price it was being offered.
Meanwhile, a report that appeared on the internet on Sunday stating the council was facing bankruptcy because of liabilities relating to Ballyduff Beg, was rejected by Mr Coughlan.
Addressing councillors on Monday, the county manager insisted he never mentioned the word bankruptcy during any council discussion about the Inagh landfill. He confirmed he had stated if the council spent €4m from its own resources developing Phase Four, it could have had implications for its working capital and day to day running such as paying supplies and pay roll costs.
He pointed out the council had an annual income of over €110m and also had a substantial asset base, so the suggestion that the council was facing bankruptcy had serious implications.
“I understand that lending institutions are monitoring the situation on the internet. If any one of our foreign lending institutions were to receive a hint that the council was in danger of going bankrupt, it could have serious implications, particularly in relation to our ability to repay loans.
“I contacted the media organisation and asked them to take down the report, which was withdrawn and I hope this is the end of it.
“We are in difficult times and have to have regard for the reputation of the council and the county. If I publicly suggested that any business or media organisation was in danger of bankruptcy, I am sure they would be very concerned and would contact me to withdraw this statement,” he said.