States' Trading Supervisory Board and Committee for the Environment & Infrastructure - P.2018/29
The States are asked to decide:-
Whether, after consideration of the joint Policy Letter of the Committee for the Environment & Infrastructure and the States' Trading Supervisory Board entitled "Waste Strategy Implementation - Household Charging Mechanisms", dated 5th March 2018, they are of the opinion:-
1A To:-
a) rescind Resolution 5 of 16th February, 2017 on Article III of Billet d'État V of 2017, insofar as it:-
i. directs the Policy & Resources Committee to make available a loan from the proceeds
of the States of Guernsey Bond Issue (of December 2014) to fund the initial capital
costs of the new waste management facilities and services referred to in that resolution; and
ii. directs the States' Trading Supervisory Board to fund the related loan interest and capital
repayments from the Solid Waste Trading Account;
b) approve a capital vote of a maximum of £32million, charged to the Capital Reserve, to fund a grant to the Solid Waste Trading Account of the capital costs of new solid waste management facilities and services required for the implementation of the island's solid waste strategy as referred to in Resolution 4 of 16th February, 2017 on Article III of Billet d'État V of 2017; including the repayment of any amounts advanced from the loan from the States of Guernsey Bond issue (of December 2014) together with any interest accrued and associated charges; and
c) rescind Resolution 7 of 16th February, 2017 on Article III of Billet d'État V of 2017 insofar as it directs the States' Trading Supervisory Board to recover the capital costs referred to in paragraph b) from charges made to householders, businesses and other users of waste management services.
Or, only if Proposition 1A shall have been defeated,
1B To:-
a) approve a capital vote of a maximum of £16million, charged to the Capital Reserve, to fund a grant to the Solid Waste Trading Account of 50% of the capital costs of new solid waste management facilities and services required for the implementation of the island's solid waste strategy as referred to in Resolution 4 of 16th February, 2017 on Article III of Billet d'État V of 2017;
b) limit the loan from the proceeds of the States of Guernsey Bond issue (of December 2014) (as approved by Resolution 5 of 16th February, 2017 on Article III of Billet d'État V of 2017) to a maximum value of £16million; and
c) rescind Resolution 7 of 16th February, 2017 on Article III of Billet d'État V of 2017 insofar as it directs the States Trading Supervisory Board to recover the capital costs referred to in paragraph a) from charges made to householders, businesses and other users of waste management services.
Or, only if Proposition 1B shall have been defeated,
1C To reaffirm Resolution 5 and Resolution 7 of 16th February, 2017 on Article III of Billet d'État V of 2017, directing the Policy & Resources Committee to make available a loan from the proceeds of the States of Guernsey Bond Issue (December 2014) to fund the capital costs of the facilities and services to implement the solid waste strategy; and directing the States' Trading Supervisory Board to recover all solid waste management costs fully through charges to householders, businesses and other users.
2. To direct that the initial waste charges are set so that the following balance between the Waste Disposal Authority fixed charge and the residual waste bag/tag charge is approximately achieved (unless there are material reasons not to do so, which are explained when the Ordinance relating to the Waste Disposal Authority Charges for Households is proposed to the States):
a) a zero-rated annual fixed charge with all costs apportioned to bag charges so that the charge for a standard sized waste bag, including a 50 pence risk contingency, is estimated as:-
i. £3.90 if the initial capital costs are to be wholly funded from the Capital Reserve;
ii. £4.40 if the initial capital costs are to be 50% funded from the Capital Reserve; or
iii. £4.80, if the initial capital costs are to be wholly recovered through waste charges.
OR, only if Proposition 2a) shall have been defeated,
b) an annual Waste Disposal Authority fixed charge equivalent to 20% of the total household charges to be recovered by the Waste Disposal Authority, with the balance being recovered through bag charges, so that the charge for a standard sized waste bag, including a 50 pence risk contingency, and the annual Waste Disposal Authority fixed charge, respectively, are estimated as:-
i. £3.20 and £45 if the initial capital costs are to be wholly funded from the Capital Reserve;
ii. £3.60 and £50 if the initial capital costs are to be 50% funded from the Capital Reserve; or
iii. £4.00 and £55 if the initial capital costs are to be wholly recovered through waste charges.
OR, only if Proposition 2b) shall have been defeated,
c) an annual WDA fixed charge equivalent to 40% of the total household charges to be recovered by the WDA, with the balance being recovered through bag charges, so that the charge for a standard sized waste bag including a 50 pence risk contingency, and the annual WDA fixed charge, respectively, are estimated as:-
i. £2.50 and £85 if the initial capital costs are to be wholly funded from the Capital Reserve;
ii. £2.80 and £100 if the initial capital costs are to be 50% funded from the Capital Reserve; or
iii. £3.10 and £110 if the initial capital costs are to be wholly recovered through waste charges.
3. To approve that in relation to Waste Disposal Authority charges for households:-
a) the Waste Disposal Authority will have the option of collecting the fixed charge annually, twice yearly or quarterly as it prefers;
b) a fixed penalty charge of £25 per month or interest at 10% per annum (whichever is higher) can be levied in the event of late payment; and
c) payment must be made within 30 days of an invoice and unpaid debts, including interest, will be recoverable by the Waste Disposal Authority as a civil debt.
4. To direct the Policy & Resources Committee to make available to the Solid Waste Trading Account an overdraft facility on such terms as the Policy & Resources Committee shall agree with the States' Trading Supervisory Board.
5. To direct the preparation of such legislation as is necessary to give effect to their above decisions.
The above Propositions have been submitted to Her Majesty's Procureur for advice on any legal or constitutional implications in accordance with Rule 4(1) of the Rules of Procedure of the States of Deliberation and their Committees.
