Buy back plan put on hold
TORBAY Council’s buy-out of shares in refuse and recycling company TOR2 has been put on hold.
The council’s chief executive Steve Parrock has taken the decision not to go ahead with the share purchase for the time being.
The reason given is that further ‘due diligence’ needs to be undertaken.
The council had decided back in June to complete a comprehensive appraisal ahead of a possible purchase of the Kier Group’s shares in TOR2.
But a decision was taken last week ‘that Torbay Council does not purchase Kier Groups shares in TOR2 at this time to allow further due diligence to be undertaken’.
Torbay Council wants to take back bin collections, recycling and other front line services by bringing the ‘joint venture company’ back in house.
The vote came after months of turmoil for the management of TOR2 over missed bin collections across Torbay, problems the company blamed on a shortage of drivers and vehicles.
The original 10 year contract is due to end in July 2020, but both parties have agreed in principle that Torbay Council will acquire Kier’s shares
Kier Highways finance director Joe Incutti, who is the chairman of the Tor2 Board, said: “Kier is wholly committed to supporting Torbay Council to ensure the best possible outcome for the people of Torbay and the employees of Tor2.
“We will work with Torbay Council supporting our teams and looking to ensure that any future changes to Tor2 are both smooth and seamless.”
Lib Dem leader Cllr Steve Darling said he welcomed the decision but feared the costs.