14Jun

Councils apply for Judicial Review after Defra withdraws PFI credits

Posted on 14th June, 2013

Two of the three council partnerships affected by a Defra’s withdrawal of Private Finance Initiative (PFI) credits for waste projects are seeking a judicial review on the department’s decision.

Bradford and Calderdale councils followed North Yorkshire and City of York councils decision to apply to the High Court, seeking leave to bring a judicial review (JR).

Bradford and Calderdale councils had £62.1m of PFI support removed from their waste treatment plant project in Bradford, while North Yorkshire and City of York councils had £65m in PFI credits removed, which were allocated towards a waste park and incinerator at Allerton, North Yorkshire.

The third project affected by the cancellation of the PFI funding, Merseyside Recycling and Waste Authority and Halton, which had some £90m of credits withdrawn, said it will not proceed with legal action.

Bradford council said that without Government support their waste treatment plant project in Bradford was no longer financially viable. North Yorkshire County Council said that while waiting for the outcome of the review they will keep working with their partner AmeyCespa to finalise the details of their long-term waste management project.

Merseyside Recycling and Waste Authority said it will not seek a JR as its project with Halton council was now affordable without PFI credits.