Austin BMI, Cleanaway and Lantrak waste appeals against Ipswich council could cost ratepayers almost $8 million

The council’s three-pronged court battle against waste companies is the biggest matter the Planning and Environment Court has heard, and it is set to cost ratepayers millions.

Ipswich City Council could pay almost $8 million in legal fees in a combined court battle against three waste companies.

IPSWICH ratepayers could fork out almost $8 million to fund the council’s ongoing court battle with three separate waste companies.

Appeals against Ipswich City Council’s rejection of expansion plans at local landfills by Austin BMI Pty Ltd, Cleanaway Solid Water Pty Ltd and Lantrak Property Holdings is being heard in the Planning and Environment Court.

The three appeals are being heard concurrently due to overlapping evidence and issues in dispute.

The three appeals by waste companies is being heard in the Planning and Environment Court until at least mid-August.

It is the biggest matter the Planning and Environment Court has ever heard.

The council hired Brisbane-based law firm McInnes Wilson Lawyers to act on its behalf having previously worked with them on other court stoushes with waste operators.

The fee estimates from the firm for this three-pronged case is now at $6.5 million, with a ‘contingency’ of 20 per cent up to $1.3 million.

That takes the total up to $7.8 million and Ipswich councillors voted unanimously for acting CEO Sonia Cooper to approve this money to be released.

The council has already paid $3.8 million to the firm.

For this “long running” and “complex” matter, the council has retained the firm as well as a senior and two junior counsel and 11 expert witnesses.

In comparison, Lantrak has 17 experts, Cleanaway has 24 and BMI has 21, alongside one law firm and two counsel each.

The Department of State Development, Manufacturing, Infrastructure and Planning has also retained a law firm and two counsel as party to the appeals.

Submitters from the community who elected to become co-respondents in each appeal have also nominated expert witnesses, with the council providing support.

Ipswich Mayor Teresa Harding said the amount of money being spent made her feel sick to her stomach.

The council’s deputy general counsel Allison Ferres-MacDonald said the hearing timetable had another six weeks to run but that could be blown out further.

She said a decision was not expected for at least another year, if not longer.

Cleanaway and Lantrak both initiated their appeals in 2019 and BMI did so in March last year.

Court proceedings for the combined matter started on May 10.

“Back in 2019 it wasn’t obvious that we would be where we are today,” she said.

“We always try to manage appeals in-house in the first instance. There’s only five of us. Appeals of this scale they take teams of lawyers to administer.

“Combined together they are the biggest matter that the (Planning and Environment Court) has ever dealt with.”

Mayor Teresa Harding said the amount of money the council was spending on legal fees made her feel “sick to her stomach” and the funds should be spent on roads and community infrastructure instead.

“That weighs heavily on me,” she said.

“(Waste companies) keep wanting to do more and push every boundary.

“Residents have been very clear that what is happening can’t continue.”

Bio-Recycle was fined $300,000 last year.

Cr Harding pointed to the $300,000 fine received by Swanbank operator Bio-Recycle last year, after it made more than $7 million from the illegal dumping breaches it was found guilty of, as a particular point of frustration for the council and the community.

Division 3 councillor Andrew Fechner said he hoped the ongoing legal matters would open up the dialogue with the state government and lead to changes in legislation so these compliance issues could be better addressed.

“It’s a very expensive stand to make,” he said.

“It’s a leap of faith that we’re prepared to take here to ensure that our voice is as loud as possible.

“This sends a very loud and clear message to the state government as to how far we’re prepared to pursue these matters.”

About 42 per cent of Queensland’s waste is disposed of in Ipswich and in the 2018-19 financial year, the eight privately owned and operated landfills in the city received about 4.23 million tonnes of waste from around the state.

“There is the chance that any or all of the appeals will be approved by the court,” a report to councillors noted.

“If this does occur, further works and hence costs to council will be incurred.

“Inversely if the appeals are not approved by the court, the appellants can apply for leave to appeal the judgment and this will incur costs to council in its own right beyond (what is currently predicted).

“Further funding in the amount of $4 million, the majority of which will be paid over the next four months, is to be made available.

“The timing on when these costs are incurred will impact on council’s financial results for the 2020-2021 and 2021-2022 financial years.

“Budget amendments are likely to be required during the 2021-2022 year as the actual expenditures and timing become known.”

Read more stories by Lachlan McIvor here.