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Incinerator row is coming to a head
SEAFORD MP Norman Baker says he has received confirmation that East Sussex County Council failed to consult the Treasury before deciding to award a five-year extension to Veolia without inviting rival bids.
The information came to light following an oral exchange between Lib Dem Norman Baker – who is strongly opposed to the Newhaven incinerator – and Treasury Secretary Angela Eagle on the floor of the Commons last week.
The European Commission has stated that it was minded to uphold Mr Baker's complaint against the Council for failing to follow public procurement rules, and the Lib Dem MP now intends to make the Commission aware of the latest revelation.
He told the Commons, "The Minister may be aware that the European Commission has indicated it is minded to uphold a complaint I instigated against East Sussex County Council for letting the extension to their waste contract without open tender, a contract for which PFI funds have been provided.
"Did East Sussex County Council seek specific approval from the Treasury before entering into this contract extension to confirm that the terms of the initial PFI award were not breached, and that all obligations in respect of public procurement were properly discharged; and does he regard the artificial, now corrupted PFI, as still valid?"
Treasury Secretary Angela Eagle confirmed that East Sussex County Council did not seek Treasury approval before granting the extension.
Mr Baker added, "It is shocking that East Sussex County Council did not take advice from the Treasury, or it seems anywhere else in government, before embarking on their dubious action.
"Given the uncertainty which they themselves expressed, in secret reports to councillors, about the legality of their action, it is clearly negligent that they failed to check their proposed actions with the Treasury, which provided the PFI funds for the waste contract.
"Here is yet further evidence of the amateurish and slipshod way in which the council has approached this multi-million- pound contract.
"I am drawing this latest example to the attention of both the European Commission and to the council's own auditors, with whom I have another complaint under consideration."
East Sussex County Council's Director of Transport and Environment, Rupert Clubb, pictured, said, "There was consultation with central government on the extension to the contract at a number of levels. The Department for Environment, Food & Rural Affairs (Defra) was kept fully informed and the extension was discussed with the Audit Commission, which is responsible for ensuring that public money is spent economically, efficiently and effectively.
"The reports to the County Council's Cabinet, based on advice from experts in procurement law, were not secret but were classed as confidential because of commercial sensitivities.
"They did not express uncertainty about the legality of the contract. They pointed out that an extension could be subject to legal challenge, as can virtually any such decision, but that the risk of any challenge being successful was low."
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Weather for Eastbourne
Sunday 27 May 2012
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