Revenue raised from the sale of compost

1240/5(3768)

WRITTEN QUESTION TO THE MINISTER FOR TRANSPORT AND TECHNICAL SERVICES BY DEPUTY P.V.F. LE CLAIRE OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 11th MARCH 2008

Question

"(1) F or 2006, would the Minister advise –

( a) the amount of revenue generated from the sale of 1.6 million litres of "Genuine J ersey" soil

improver from composting;

(b ) h ow these were funds disbursed?

(c ) h ow much profit or loss each litre of compost sold resulted in? (d ) h ow these figures were derived?

Answer

It should be noted that due to a change in the chart of accounts between 2006 and 2007 and operational difficulties encountered during 2007, direct comparisons between the costs of the green waste operation between the two years are difficult to make.

It must also be stated that the primary reason for the green waste composting site is to dispose of commercial and domestic green waste in accordance with the principals of the waste hierarchy and prevent  such arising from entering  the Energy from Waste facility at  Bellozanne. The green waste disposal site's fundamental role is not for generating income and the Genuine Jersey Soil Improver is an engineered by-product of the green waste composting process.

(a )  In 2006 1,858,800 litres of Genuine Jersey Soil Improver were sold and this generated an income of

£63,157.

(b )  T he income from the sale of Genuine Jersey Soil Improver was used to help offset the operational

costs of running the Green Waste Composting site.

(c ) I n 2006 it costs £0.29 per litre to produce Genuine Jersey Soil Improver. It should however be noted

that if no Genuine Jersey Soil Improver had been made, the overall cost of operating the green waste composting site would have been £63,157 higher.

(d ) T he profit / loss figure is the operational cost of the green waste composting site divided by the

quantity, in litres, of Genuine Jersey Soil Improver produced and sold. The base financial figures are from the 2006 accounting records and the quantity of Soil Improver sold is from the Departments own records.

Question

2. In 2007 wouldthe Minister advise –

(a ) h ow many litres of "Genuine Jersey" soil improver the department sold?

(b ) h ow much money was derived from these sales and to whom the money was d isbursed?

(c ) h ow much profit or loss each litre of compost sold resulted in or attained?

(d ) w hat the total expenditure in 2007 for compost operations was, including m achinery purchased?

(e ) h ow these figures were derived?

Answer

(a ) I n 2007 the Department sold 403,000 litres of Genuine Jersey Soil Improver.

2. The incomegeneratedwas£46,423and this was used to help offset theoperationalcostsofrunning the GreenWasteCompostingsite.
3. In 2007 it costs £1.75 per litre toproduceGenuine Jersey SoilImprover.This cost is completely different to the 2006 cost due to the change in accounting and the reduced quantityof Genuine Jersey Soil Improverproduced.
4. In 2007 the operationalcosts of running the greenwastecompostingsitewas£705,278. In addition to this a new greenwasteshredderwas purchased at a oneoff cost of £222,000.
5. T he profit / loss figure is the operationalcostof the greenwastecomposting site dividedbythe quantity ofGenuineJerseySoilImprover produced andsold.The base financial figures are from the 2007 accounting records and the quantity of Soil Improver sold is from the Departments own records.

Question

3. Is the Department currently mixingsewage with compost?

Answer

T h e D  epartment is not mixing sewage with compost.

Question

4. W h atstageisthedepartment currently atin identifying and providing a containedcompost operation?

Answer

A M  inisterial Decision (MD-T-2007-0113) was taken by the Minister TTS on 11 December 2007 to

approve the selection of the La Collette industrial  area as the confirmed preferred location for  the replacement enclosed composting facility and the Transport and Technical Services Department is now looking to progress a full Environmental Impact Assessment and Health Impact Assessment.

Question

5. W hat were the States' contributions in2006and 2007 in termsof pensions foremployees involved in the compostoperations?"

Answer

Based on the permanent staff employed to manage and operate the La Collette Green Waste Composting site and taking 20% of the external manager pension costs, the total States pension contribution, not including the employee's contribution for 2006 was £15,839 and for 2007 it was £16,913. These figures do not take into account the pension contributions for staff drafted in to cover for sickness, holidays, weekend cover or irregular labour demands.

Note: The difference between the income per litre in 2006 and 2007 is due to the fact that Soil Improver is sold on a sliding price scale which is dependant on the quantity ordered. In 2007 emphasis was placed on the sale of bagged Soil Improver to the garden centres. This method of sale gives a greater income than that of loose or bulk bag delivery.