Agenda item

The Board reviewed the Bristol Waste Company Limited Business Plan 2023/24.

The Chair, Board of Directors, Bristol Waste and the Finance Director, Bristol Waste presented the Business Plan with reference to a slide presentation that was included in the published agenda papers.

It was noted that key points highlighted via the presentation included:

- Successes over the last 12 months, including the new Hartcliffe Way household reuse and recycling centre (HRRC), a new HRRC booking system, improved recycling and a 13% reduction in household waste, and implementation of the ‘village’ approach to recycling.

- Corporate governance and stewardship improvements.

- An outline of the one-year plan for the next financial year, covering municipal waste, workplace services and commercial waste.

- A summary of the 2023/24 company position.

Points raised/noted in OSMB member questioning of Bristol Waste representatives:

1. Details of the 2021/22 audited statutory accounts had been sent to members in advance of the meeting.  In response to questions, it was noted that these accounts did not impact on the viability of the one-year Business Plan that would be taken forward from 1 April 2023.   In response to further questioning, the Bristol Waste Finance Director stated that the company was currently financially resilient and would remain so provided that the company could meet the challenges ahead (including inflationary pressures) and make the efficiencies and changes required for next year and beyond.  Cash reserves at the end of the current financial year were estimated at £5.5million with an estimated operating profit for 2023/24 of £433,000.   The Bristol Holding Ltd Group Finance Director commented that, in his view, the one-year Business Plan was robust and achievable.

2. Whilst noting the process followed in relation to communications around the recent departure of the Bristol Waste interim Managing Director and establishment of new interim company management arrangements, members nevertheless felt it would have been appropriate for clear information to have been communicated to the full OSMB membership on this matter at an earlier point.  Members noted that the recruitment process for a permanent Managing Director was underway and that it was anticipated that the new appointee would be in post by the summer.

3. Members noted that the one-year Business Plan was a departure from the usual five-year period.  Some member concerns were expressed about the impact this could have on local residents due to uncertainty about services they would receive in the future.  Members felt there was insufficient early communication with them about the issues that led to the production of a one-year plan.  

4. Members also felt that it was difficult to reconcile a one-year Business Plan with the recognised need to take forward longer term improvements, including plans for workforce development so that the company maintained and developed further the skills and expertise needed to operate effectively as a ‘Teckal’ company.

5. Members noted and welcomed a commitment given by Bristol Waste representatives to move forward as quickly as possible with the development of the longer-term Business Plan, recognising that in planning service changes (for example, in relation to developing the food waste collection further), significant ‘lead-in’ times needed to be factored in.   Members recommended that Bristol Waste should work with councillors on a cross-party basis to keep them updated about the future plans so that members were in an informed position to assist in shaping services. Members also noted that the Communities Scrutiny Commission was likely to see this as a key element of their 2023/24 work programme.  In discussion, members noted a commitment given by Bristol Waste representatives to share details of the emerging longer term plans, noting, for example, that a key issue in the next year will be to consider the longer term replacement of the main refuse and recycling fleet which will be needed in 5 years’ time.

6. Members noted and welcomed a commitment given by Bristol Waste that they would provide advance information to and engage with ward councillors once proposed changes to street cleansing arrangements were finalised.

7. A point was raised about Bristol Waste realising more commercial income and investing in skills and equipment to make this more likely.  Members noted confirmation from Bristol Waste representatives that the commercial business activities of the company were a useful source of income and currently provided a satisfactory rate of return. 

8. Noting decisions taken by the Full Council in determining the Council’s 2023/24 budget, reassurances were sought about the work being done to support and improve recycling in a range of categories.  In particular, members were interested in the impact of the introduction of the booking system at the HRRCs. It was noted that the frequency and tonnage of fly tipping had not increased following the introduction of the booking system and that Bristol Waste was confident that the proposed reduction in operating hours at the centres would not impact residents or recycling rates; this situation would though need to be monitored closely.

9. Members were also concerned that current services must be monitored effectively.  It was flagged, for example, that, as of the date of this meeting, the online service for ordering new bins, recycling boxes and lids was not currently available to residents via the Council’s website.  It was noted also that Bristol Waste would investigate and seek to resolve this as a matter of urgency (note: subsequent to the meeting, this IT access issue was resolved).

10. Members noted that a commitment had been given to free replacement bins being provided in circumstances where bins were damaged by crews; but also noted that a delivery charge would be in place. Again, members felt this ongoing situation should be monitored and kept under review as necessary.

11. Confirmation was sought about the arrangements for Bristol Waste’s external auditors to sign off the company accounts in light of the one-year Business Plan.  Members were again advised that Bristol Waste officers were confident about the Company’s current resilience and that, for audit purposes, it would be regarded as a ‘going concern’.

12. Members noted that (although the individual level of detail was not set out in the plan) each of the actions included in the Business Plan had been assigned an ‘owner’.

13. In response to further questions, the Bristol Waste Finance Director clarified that:

- the 60% increase in overheads in 2023/24 resulted from a number of factors including allowance for contingency, corporate governance costs and costs linked to planning for changes ahead.

- the increase in the period over which assets are depreciated was due to a change in ‘book-keeping’ policy.