The following answers can be attributed to Director City
Services Guy Wilson-Browne
Can you
confirm the City was owed $1.4 million by SKM Corporate when it went into
liquidation? Is a breakdown of these debts available?
A creditors’
report indicates that SKM Corporate owes us $1.405 million. The City does not
have a breakdown of this figure.
Will Council
pursue SKM’s receivers for this money? Will Council also pursue the
receivers to cover the $650,000 spent in sending kerbside recycling to
landfill so far this year?
The City
believes it is entitled to seek reimbursement for any additional costs we have
borne due to the disruption to contracted services. This would include
the costs associated with sending recycled waste to landfill.We are monitoring
the progress of the company’s liquidation, and the review by the administrators
and receivers of the affairs of the wider SKM Group, before considering our
options.
What effect are these debts and extra
spending expected to have on next year’s budget? Is there a possibility the
City’s underlying result will be pushed into deficit as a result of this waste
crisis?
At this stage of the process, it is too early to
gauge the ultimate impacts on our Budget.
