Norwich City Council, which uses financially troubled contractor Connaught to deliver its waste and recycling collections, has reassured residents that services will not be disrupted should the contractor go into administration.
Connaught, which provides services such as grounds maintenance, council housing repair and refuse and recycling collection services, made an announcement to the London Stock Exchange on September 7 to say it had suspended trading in its shares and added that the company’s prospects were uncertain.
Refuse and recycling services in Norwich, which have been sub-contracted by Connaught to Verdant since April of this year, are expected to remain unaffected even if Connaught does enter administration as the council has said it has a contingency plan in place.
Norwich city council leader Steve Morphew said: “Our priority is to make sure our residents are not affected and continue to receive the services they rely on us to provide.
“We are one of 150 councils and housing associations around the country for which Connaught provides services. This is clearly not where we want to be, but we are all well prepared should it go into administration.”
Verdant also confirmed that it was aware of the situation and was in discussions with the council about the service.
A statement issued by Verdant said: “Verdant is aware of speculation that Connaught may be going into administration. Verdant is continuing to deliver its service for Norwich residents and is in discussions with the council about the future of the service.”