Waste collection cooperative GreenPak has called upon WasteServ to settle outstanding payments of nearly €500,000 or its collection service would grind to a halt and “waste will accumulate in the streets”.

The cooperative, which handles collection and recycling of packaging waste, claimed in a judicial protest that the state waste-management entity had decided unilaterally to vary the terms of a longstanding agreement which covers the waste that GreenPak ferries to Wasteserv.

Wasteserv had introduced “radical changes” to the rates and methodology laid down in the agreement, signed in December 2012 and renewed ever since, GreenPak claimed.

In spite of several meetings and correspondence, no solution to the problem was achieved.

GreenPak, which is made up of 1,200 local businesses, claims it is owed €445,455.47 for its services between January and June but WasteServ says the sum is €279,396.93.

The state agency has offered to pay that sum in full and final settlement for all waste material sold to it during those six months, but GreenPak “certainly could not accept” this condition, it said.

The situation was compounded further when, in spite of correspondence clearly exchanged “without prejudice”, WasteServ filed a schedule of deposits for that sum, stating that the rates laid out in the attached correspondence “were to apply”.

Since January, GreenPak has received no payment from WasteServ, not even that part of the sum which appears to be ‘uncontested,’ the court was told.

This “abusive and illegal” action has landed GreenPak in “enormous difficulty,” making it very difficult for it to pay its collectors.

Unless WasteServ settled its dues, waste collectors would not get paid, the service would grind to a halt and “waste will accumulate on the streets,” GreenPak’s lawyers warned.

The issue was not simply a commercial one but a matter of national concern that could possibly impact public health, the court was told.

Adding insult to injury, GreenPak had received a ‘warning letter’ from the Environment and Resources Authority saying that should the cooperative default on its obligations to collect waste door-to-door, and at a certain frequency, it would be held responsible.

GreenPak called upon WasteServ to settle its dues and pay damages suffered by the cooperative.

Lawyers Antoine Naudi and Tyrone Grech signed the judicial protest.

Wasteserv points to 'rejects' in material sent for recycling

In a statement on Sunday, Wasteserv, while not referring directly to the court action, denied it is withholding payment for the delivery of separated waste and said it is GreenPak  that has refused payments for the delivered recyclables. It said it will now deposit the funds in court.

The agency explained that private operators, like GreenPak, deliver recyclable material – consisting of paper, cardboard, plastic and metal – to WasteServ and are then paid for the said recyclables and charged for rejects. Rejects are wastes that cannot be recycled.

It said, however, that exercises in February and June had found that  the rates of rejects were 33.48% and 27.2% respectively.

"This means the during the exercise held in February 33kg out of every 100kg that were being delivered were materials that could not be recycled, and when the same exercise was repeated in June 27kg out of every 100kg were rejects" Wasteserv said.

Rejects included clothing, bulky items, organic waste and  dangerous materials such as clinical waste, dead animals, highly flammable substances/devices and other similar materials. 

"Paying for the delivery of such reject material is clearly not an option as the state operator would be subsidising its own failure," Wasteserv said, adding that this would drain its resources, impacting the country’s environmental performance.