Buy back plan put on hold

Herald Express - - News -

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.

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