Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Belfast Live
Belfast Live
National
Donal McMahon

Newry Down Council facing cost overrun on £7.4 million bin lorry fleet replacement plan

A £7.4 million plan to replace a council waste collection fleet is facing cost-overruns of tens of thousands of pounds.

Newry, Mourne and Down District Council has taken delivery of the first of its new vehicles over the last number of days, but councillors have been told they are already facing a cost-overrun of around £60,000.

A 2021 council estimate had put the cost of 85 vehicles at £5.6 million, but there was a hike on the predicted bill of almost £2m by the time of ordering earlier this year. The Council now says the expected procurement will be around £7.4 million.

Read more: Newry, Mourne and Down Council to spend £5.6m on new waste fleet.

There were 73 replacement vehicles ordered in April 2022 as a priority through the Yorkshire Purchasing Organisation (YPO) framework to be delivered by the end of March 2023.

However, details have emerged at the council’s sustainability and environment committee of considerable price jumps and time shifts on orders as 40 more vehicles need to be ordered and some others re-tendered.

A council officer said: “Following business case approval, the procurement of three hook lift vehicles has concluded with orders placed in November 2022.

“The expected delivery date of these vehicles is October 2023. The actual cost of the three hook lift vehicles was £510,300, which exceeded the estimated cost of £450,000 for the vehicles approved in the business case.

“Work is continuing in identifying the next set of vehicles that are in excess of their economic life, of the 40 vehicles identified to date half are small vans.

“Appropriate business cases will be brought before the committee for approval.”

Concerned councillors raised the issue of why costs had increased and where the extra funding would be found.

It was said by an officer that “economic factors had caused the increased cost” and that money would come from the “capital budget”.

Replaced vehicles are expected to either be retained as spares or disposed of at auction including for scrap value.

It has yet to be confirmed how many future vehicles will be ordered as diesel or electric powered with rising financial estimates expected to inform the council’s business plan.

The first delivery of the new fleet has been welcomed by SDLP NMDDC Chairperson, Michael Savage, who said: “We are all excited to see the results of this major investment by the council in our district’s fleet.

“We acknowledge the difficulties caused by the previous ageing fleet and our staff are very much looking forward to working in these better equipped and safer vehicles to provide residents with the best possible service.

“The council will also save money with a reduction in breakdown related costs and the vehicles being more energy efficient. We have 40 other vehicles to replace, and we will be examining as a council whether some of these should be electric vehicles.

“A four-year vehicle replacement schedule is also planned to ensure that the council’s fleet is maintained in good condition in the years to come.”

READ NEXT:

For all the latest news, visit the Belfast Live homepage here. To sign up to our FREE newsletters, see here

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.