Trade bin collection service in Havant by Norse South East cut due to persistent financial losses
Business bin collections across Havant borough will no longer be provided by Norse SE as the council starts the search for a new provider.
In extraordinary shareholder sub-committee and cabinet meetings on Tuesday (August 6), Havant Borough Council agreed that Norse South East Ltd will stop collecting commercial waste from businesses with immediate effect as it is losing too much money.
As a shareholder of Norse SE, it was decided to stop all commercial waste collection services, giving termination of service notice to all customers. Trade waste services will now be passed or sold to another firm with all current contracts being moved across.
A new organisation would be selected during a bidding process on a permanent or time-limited basis, the council said.
Councillor Phillipa Gray (Lib Dem, Bedhampton) asked to be reassured that the trade waste contract did not impact the collection of residential waste.
Portfolio holder Paul Gray (Lib Dem, Hayling West) said: “I will use this opportunity to reiterate that indeed this does not impact upon domestic collection of waste. Your normal bin collection as a resident and all residents is not impacted by this.”
During the cabinet meeting, Councillor Richard Brown (Lab, Leigh Park Hermitage) said: “When the time comes to pass it over I would like the people who have the service now to have the same or better level of service.”
The cabinet agreed that the council, as a shareholder in Norse SE, waives the right to shareholder approval and refers to the Norse Group Limited Liability Limitation Agreement.
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.