Trade bin collection in Havant by Norse South East set to stop with borough council bleeding cash

In extraordinary shareholder sub-committee and cabinet meetings next Tuesday (August 6), Havant Borough Council will decide whether Norse South East Ltd should stop collecting commercial waste from businesses and if it should pass or sell the contract to another company.

All current contracts would then move to a new organisation on a permanent or time-limited basis. The shareholder sub-committee must consider whether recommendations to stop collections and move the contract are in the best interest of the council, as a shareholder of Norse SE. If so, it will then recommend to the cabinet to halt the service, said the council documents.

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If it is decided the council must continue with the contract, then Norse SE will be asked to propose other options to the council sub-committee.

In 2023/24, a financial review of the services offered by the firm found that the commercial waste collection service was losing around £19,000 each month.

Norse SE’s board of directors asked management to deliver the commercial waste collection at a cost-neutral service as a minimum. To do this, different actions were taken including increasing charges to clients and as a consequence some contracts were lost.

In May 2024, Norse SE briefing notes said actions it had taken meant there were now fewer commercial clients and the service was still losing £9,000 per month.

According to documents, the Norse SE board said there was a need to halt ongoing financial losses as a matter of urgency and unanimously agreed the sub-committee be asked to halt the service and find a new company.

Norse SE works in partnership with Havant Borough Council to provide frontline public services. The commercial portfolio for street scene, grounds maintenance and vehicle workshop services remain profitable and sustainable going forward, a report from the firm said.

A decision will be made by council cabinet members at an extraordinary meeting on Tuesday.