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King's Lynn incinerator: £500m scheme set to be scrapped | King's Lynn incinerator: £500m scheme set to be scrapped |
(about 17 hours later) | |
A £500m waste incinerator for Norfolk is set to be scrapped months after it was warned pulling out of the project could "bankrupt" a council. | A £500m waste incinerator for Norfolk is set to be scrapped months after it was warned pulling out of the project could "bankrupt" a council. |
Norfolk County Council's plan for The Willows incinerator at King's Lynn was first given permission in 2012. | Norfolk County Council's plan for The Willows incinerator at King's Lynn was first given permission in 2012. |
But it faced widespread opposition from MPs, local councils and residents. | But it faced widespread opposition from MPs, local councils and residents. |
The council narrowly voted in October to continue with the project after a report warned of financial penalties that would be triggered by pulling out. | The council narrowly voted in October to continue with the project after a report warned of financial penalties that would be triggered by pulling out. |
Councillors will be recommended next week to terminate the contract at a cost of £30m. | Councillors will be recommended next week to terminate the contract at a cost of £30m. |
'I won't gamble' | 'I won't gamble' |
David Harrison, Liberal Democrat cabinet member for environment at the council, said pulling out of the deal would have "economic repercussions for Norfolk for years to come". | David Harrison, Liberal Democrat cabinet member for environment at the council, said pulling out of the deal would have "economic repercussions for Norfolk for years to come". |
Labour council leader George Nobbs said the scheme no longer represented value for money and that he would not "gamble with Norfolk County Council's financial future". | Labour council leader George Nobbs said the scheme no longer represented value for money and that he would not "gamble with Norfolk County Council's financial future". |
He said MPs who had opposed the scheme should "put their money where their mouth is" and seek government help for the county. | He said MPs who had opposed the scheme should "put their money where their mouth is" and seek government help for the county. |
He said a delay by the local government secretary Eric Pickles in approving the scheme and the withdrawal of PFI credits meant it had become too expensive. | He said a delay by the local government secretary Eric Pickles in approving the scheme and the withdrawal of PFI credits meant it had become too expensive. |
The council has £19m in reserves to cover the cost of withdrawing from the contract. | The council has £19m in reserves to cover the cost of withdrawing from the contract. |
The remaining £11m will be found through savings. | The remaining £11m will be found through savings. |
Last year an independent report estimated that the cost of abandoning could rise to £100m. | Last year an independent report estimated that the cost of abandoning could rise to £100m. |
'I am flabbergasted' | 'I am flabbergasted' |
Price Waterhouse Coopers (PWC) said paying compensation now would cost £28m, but to pull out later would incur further legal and other costs. | Price Waterhouse Coopers (PWC) said paying compensation now would cost £28m, but to pull out later would incur further legal and other costs. |
Last year the project was put in jeopardy when the government withdrew £169m of funding. | Last year the project was put in jeopardy when the government withdrew £169m of funding. |
The council's interim head of finance Peter Timmins warned that pulling out of the project would mean compensation payments would have to be made in 35 days. | The council's interim head of finance Peter Timmins warned that pulling out of the project would mean compensation payments would have to be made in 35 days. |
An extraordinary meeting of the council will be held on 7 April to consider a motion recommending the scheme be dropped. | An extraordinary meeting of the council will be held on 7 April to consider a motion recommending the scheme be dropped. |
Henry Bellingham, Conservative MP for North West Norfolk and an opponent of the scheme, welcomed the recommendation. | Henry Bellingham, Conservative MP for North West Norfolk and an opponent of the scheme, welcomed the recommendation. |
"I am flabbergasted, but delighted by the news. We have been saying for the last six months there are other ways of dealing with Norfolk's waste. It's a tragedy that every week that has gone by has cost Norfolk money," he said. | |
'Point-blank refusal' | 'Point-blank refusal' |
Mr Bellingham added that Norfolk's MPs would now work with the council to mitigate its financial problems. | Mr Bellingham added that Norfolk's MPs would now work with the council to mitigate its financial problems. |
Mr Nobbs said: "When council in October voted for continuation of the contract, that was on the basis that it still represented good value for money." | Mr Nobbs said: "When council in October voted for continuation of the contract, that was on the basis that it still represented good value for money." |
But he said that had relied on Mr Pickles giving his decision on the scheme "on or before 14 January", as he had said he would. | But he said that had relied on Mr Pickles giving his decision on the scheme "on or before 14 January", as he had said he would. |
"Mr Pickles' decision - or rather the total lack of it - has been the real game-changer, and has made a nonsense of government rhetoric about speedier decisions on major infrastructure projects," said Mr Nobbs. | "Mr Pickles' decision - or rather the total lack of it - has been the real game-changer, and has made a nonsense of government rhetoric about speedier decisions on major infrastructure projects," said Mr Nobbs. |
"What has been even more damaging has been his subsequent point-blank refusal to give us any idea of when, if ever, he might make a decision. | "What has been even more damaging has been his subsequent point-blank refusal to give us any idea of when, if ever, he might make a decision. |
"The result has been that we are being asked to gamble with Norfolk County Council's financial future, and that I will not do." | "The result has been that we are being asked to gamble with Norfolk County Council's financial future, and that I will not do." |
The Department for Communities and Local Government said it could not comment as the planning inquiry was a "quasi-judicial process". | The Department for Communities and Local Government said it could not comment as the planning inquiry was a "quasi-judicial process". |
Cory Wheelabrator, the consortium behind the incinerator project, said it was extremely disappointed. | Cory Wheelabrator, the consortium behind the incinerator project, said it was extremely disappointed. |
A spokesman said: "We believed that the public inquiry would have provided a fair hearing for all parties and that a decision would be based on pure planning grounds. | A spokesman said: "We believed that the public inquiry would have provided a fair hearing for all parties and that a decision would be based on pure planning grounds. |
"We, and the industry, have also made it clear to government that planning delays to major infrastructure projects are costly and can jeopardise them. | "We, and the industry, have also made it clear to government that planning delays to major infrastructure projects are costly and can jeopardise them. |
"The delay to that planning decision has resulted in considerable costs to all parties at a time when public funds are already stretched." | "The delay to that planning decision has resulted in considerable costs to all parties at a time when public funds are already stretched." |