Paul Melia: Gormley now in check after pincer move by city council

Paul Melia

August 17 2010 05:08 AM

IT's checkmate for Dublin City Council. Environment Minister John Gormley has been outplayed by the local authority, with the decision yesterday to compulsorily acquire the land needed for the Poolbeg incinerator meaning the minister is out of options.

This is the end of the line in terms of the statutory process. The €200m plant has planning permission, a waste licence, permission to generate energy and has been approved by the Department of the Environment.

The National Development Finance Agency, on behalf of the Department of Finance, has also confirmed it is good value for money. The final piece in the jigsaw -- acquisition of 2.5 acres of land needed to build a water cooling system -- is only a matter of months away.

The last weapon in the minister's armoury was the issuing of a foreshore licence. That the council has circumvented this process means it no longer matters if he refuses the licence, because it's no longer needed.

It's an embarrassment for Mr Gormley, but also an unprecedented move by management in a local authority to so openly defy a sitting minister.

But that the council took so long to trigger the nuclear option is puzzling minds in the Department of the Environment.

Mr Gormley was told months ago that the council could take this option. But what took so long?

Legislation allows the local authority to either build the plant under a foreshore licence, or by compulsorily acquiring the land.

It decided to get a foreshore licence, and applied in 2008. Last January, Mr Gormley's department took over responsibility for issuing these licences, but eight months later it had not progressed.

That the council failed to take the CPO (compulsory purchase order) option until yesterday suggests it was still hoping the minister would 'see sense' and come around to its way of thinking.

But he couldn't. His political reputation hinged on the plant not going ahead. While he has repeatedly said that incineration has a role in relation to waste disposal, the plant was too big, too expensive and would not be filled, which would mean the taxpayer was exposed.

In fairness to him, it wasn't a NIMBY (not in my back yard) argument. He does live close to a sewage treatment plant and power station.

But all attempts at reconciliation failed, with an offer to meet the council rejected. Warnings not to go ahead with the project were unheeded. It was only a matter of time before one side or the other snapped.

Mr Gormley's intransigence meant the council decided to go nuclear and cut its losses. Pressure from its commercial partner, Covanta, coupled with the possibility of legal action for breach of contract, meant city bosses decided to snub the minister and go ahead.

Covanta builds incinerators all over the world, and has repeatedly expressed frustration at delays to the project.

President of Covanta Europe Scott Whitney said his company had "never" encountered a set of circumstances similar to Ireland.

The row turned into a diplomatic incident when the US ambassador to Ireland, Dan Rooney, sought a meeting with Mr Gormley to discuss his refusal to grant the licence crucial to the development of the plant.

Covanta also sought a meeting with Taoiseach Brian Cowen over the matter.

But the city council's move is nevertheless a risky strategy, for a number of reasons.

It might get the plant built, but if Mr Gormley decides to take the matter personally he could make life very difficult for the local authority, particularly as he decides how much money it gets every year from the State.

The council plans to take the land -- much of it in the control of other state agencies -- under a CPO process.

An Bord Pleanala will be asked to approve the CPO, but it has never been asked to settle a matter like this. Its powers in this area are relatively new, and have never been tested by the courts, meaning a legal challenge could come.

If there are no objections, it's relatively straightforward and the process could be completed in just two months.

It can only be assumed the council is sure of its law, and is ready to meet a challenge.

This whole sorry saga has been a mess for the minister. The incinerator was proposed in 1996, and the Government gave the sign-off in 2005.

Since then, official waste policy has not changed, although the minister has said that will happen. Current government policy is still stacked in favour of incineration, which means that An Bord Pleanala will not have the option to consider other waste systems.

It is likely to approve the CPO, given it has already approved the plant.

The end is in sight.

What the council did yesterday was choose the easy option, in the process giving the minister the two fingers. All its ducks are in a row.

Ironically, until recently it was the environment minister of the day who had the power to approve a CPO. Now John Gormley's only role will be to ensure the council is not paying too much for the land.

pmelia@independent.ie