Waste companies may have to pay bond to cover clean-up costs if they go bust


The Government is set to consult on whether operators of waste management sites should provide a financial guarantee to cover clean-up costs if they go out of business.

Speaking in Parliament in a debate about White Recycling that went into liquidation, Resources Minister announced an upcoming consultation on strengthening the Environment Agency’s powers.


The Minister outlined an existing consultation on changes to standard rules on environmental permits, including fire prevention plans and storage of combustible waste.

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But then he revealed a new, upcoming consultation on even further powers including the financial guarantee for waste operators.

He said: “We want to do more, however. We will consult shortly on strengthening further Environment Agency enforcement powers, including ensuring that the agency can physically prevent waste from coming on to sites that are in breach of their permits…

“…We will also seek views on further changes to strengthen the law, including a requirement for greater provision from operators of waste management sites through bonds, insurance of other mechanisms. That will reduce the opportunities for rogue operators to obtain permits.

“One concern has been that if we tackle an operator that then goes out of business and into administration, then we are left with the clean-up costs. If there is some sort of financial arrangement providing a guarantee, the money can be used to remediate any problems.”