DUNDEE’S previously loss-making Baldovie incinerator has announced “substantial” profits of more than £1 million.
The annual financial report for Dundee Energy Recycling Ltd — DERL — has revealed that in the 52 weeks ending last December the group recorded a profit of £1,119,000.
However, the leader of the city council’s labour group, Councillor Kevin Keenan, has called for more openness when it comes to the
company’s finances.
He has written to the council’s director of corporate services, Marjory Stewart, voicing his concerns.
And he wants the profits ploughed back into Dundee.
Mr Keenan said he thought the figures should be taken into account when deciding on the £28 million budget savings the council have to find over the next two years.
As recently as summer 2014, the future of the incinerator was in doubt after it emerged that it had made a seven-figure loss over the previous
18 months.
The deficit was partly due to the fact that the plant was out of action for a year following a major fire.
As a result the plant’s owners, Dundee City Council, announced it was considering alternate means of disposing of waste in the city.
However, an improvement in productivity has guaranteed the plant’s future for the foreseeable future.
Mr Keenan has asked Mrs Stewart why the company accounts for DERL had not been presented to councillors for scrutiny.
He said: “I recently received the financial statement for DERL.
“I was quite surprised that the company was reporting substantial profits.
“Why was this figure not made available to councillors so they could be taken into account in the budget setting process this year?”
He said he hoped this year’s accounts were well in hand.
He added: “I would be extremely surprised should they not be showing similar results.
“Recently it was announced that recycling throughout Dundee is currently better than expected.
“Given the profit for 2014 and my expectation for 2015, I would like to see these profits come forward so councillors can use them to off-set the worst of the Scottish Government’s budget cuts to deliver community benefits for the efforts of the individuals who have supported this council’s recycling efforts.
“This revenue is needed to be spent on vital services, not just sitting on a line in a spread sheet reflecting profit for a city owned company.”