Viridor calls for aggregated services model
Jennifer McDowall | 29 January 2016

A new paper released today by Viridor states that the waste management system is ‘no longer fit for purpose’ and encourages the adoption of an aggregated services model.

Building English Resource Networks: The Aggregated Services Model’ claims that current decisions on waste management are based on ‘arbitrary political boundaries’ and are not ‘focused on the value of resources’.

The paper was launched at both the Remunicipalisation Conference and the Resourceful Conference in London yesterday (28 January) and highlights the need to create fully-integrated resource networks.

Viridor claims these networks could create half a million jobs and reduce unemployment by around 102,000, and would focus on consistent collections of high-quality material, deliver infrastructure on a regional or city scale and go beyond the boundaries of local authorities.

‘Manchester Model’

England’s recycling rate is currently staying steady at around 44.8 per cent. This, claims Viridor, is partly due to a lack of government strategy and increasing pressures on funding provided to local authorities, which undermine systems already in place.

Viridor, a resources and renewable energy company, believe a more ambitious ‘aggregated services’ model is needed to move towards a more circular economy and shift policy away from ‘encouraging wastefulness’.

The formation of English resource networks, such as the one Viridor says is developing in Greater Manchester, would allow the UK to align with Europe’s circular economy policies and increase productivity of UK businesses.

In addition, such networks would not only support national economic growth, but join up the country’s value chain and create economies of scale.

The ‘Manchester Model’ is the largest partnership between the private and public sectors in Europe and, Viridor says, is based on the aggregated service model. In April 2009, the Greater Manchester Waste Disposal Authority (GMWDA), which is the largest in England, signed a £3.8-billion, 25-year recycling and waste contract with Viridor Laing (Greater Manchester) Limited (VLGM), which sees the VLGM delivering waste services to nine areas in the region, as well as handling communications and the building of 42 new facilities.

The potential of resource networks

The establishment of resource networks, Viridor says, could include the introduction of obligatory standards for waste collection and allow the government to implement a new economy-wide model while at the same time progressing the business case that demonstrates the advantages to the implementation of consistent recycling collections.

The report highlights other measures that could be put in place, such as the creation of a National Resources council and an innovation fund for research into new collection authorities.

Viridor has produced a second report to encourage the production of resource networks in Scotland. Although very similar to the report on English waste management, it acknowledges that the ‘Scottish Government recognises the problem and indeed is showing real leadership in the drive to take full advantage of the opportunities that are available to the resource sector in the green economy.’

Resource Networks would ‘boost British business, productivity and jobs’

Chris Jonas, Director of Business Development at Viridor, said: “Resource policy in England stands at a crossroads. Whilst progress in recycling has been a real UK success story up to a point, we now face a future with the potential for significant success or substantial failure.

“Ambitious resource networks hold the prospect of boosting British business, building better regulation, improving productivity and creating up to half a million jobs. By contrast, retaining outdated policy and systems based on outdated assumptions will do little other than reinforce linear waste management systems that were designed for a bygone era when collections were based on geographic areas and an overall objective of reducing transport and disposal costs.

“Even now, decisions about collections, contracts and infrastructure are still often based on arbitrary political boundaries by authorities and organisations not focused on the value of resources to the UK economy. This situation is made worse by the current pressures on local authority funding which mean that even existing recycling systems are being undermined. There is therefore no doubt that the current resource management systems are no longer fit for purpose.

“Our paper calls for decisive action and illustrates how fully-integrated resource networks, focused on the availability of high-quality materials rather than local authority boundaries, would have a huge impact in delivering a truly circular economy.

“There is a significant opportunity for England’s politicians to commit to the adoption of resource networks that would boost British business, productivity and jobs and position the country as a leader in resource stewardship.”

The full ‘Building English Resource Networks: The Aggregated Services Model’ report can be downloaded from Viridor's website.

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