Related: Jobs to go as agency wound up
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The Eaglehawk Recycling Shop will continue despite the collapse of Future Employment Opportunities which previously ran the transfer station, securing 14 jobs and preventing an estimated 8000 tonnes of waste from entering landfill every year.
However transfer stations at Strathfieldsaye, Heathcote and Goornong remain in limbo, with 10 employees on those sites in danger of being made redundant.
ERS’ new chairman of the board of directors Leon Scott said the not-for-profit organisation purchased the assets of the recycle shop – vehicles, forklifts, plant equipment, tools, other machinery and stock – from FEO liquidators for $100,000.
He said himself and councillor Peter Cox – named ERS secretary – had taken a step back from the organisation in 2010 after being involved since its inception in 1994.
“But when we found the FEO was in liquidation, we were pretty distressed,” Mr Scott said.
“So we formed a team of six people, people from business and the professional world, and we’ve registered the name Eaglehawk Recycle Shop Inc. and now have an ABN number.
“We've applied for charity status and this group will now form as a not-for-profit organisation – the six directors are all honorary, so there's no payment whatsoever for them.”
After FEO was placed into into voluntary administration, administrator PKF Melbourne advertised for expressions of interest to operate the shop and the proposal put forward by ERS was accepted by them as the only viable option.
Council has entered an arrangement to ensure ERS remains open for the next three years at least.
During this time, the City of Greater Bendigo will charge a nominal licensing agreement fee.
City acting chief executive officer Darren Fuzzard said the arrangement will ensure the shop can provide a valuable service for the community.
“Under previous arrangements, the shop provided Bendigo residents with a place to drop off recyclables rather than discarding them at the Eaglehawk landfill,” Mr Fuzzard said.
“Since being established in 1994, it is understood that over 150,000 tonnes of recycled material has been dropped off there.
“This equates to a $25 million saving for the community.”
Related: Discovery centre to keep ticking
Mr Fuzzard said the arrangement with the ERS was very similar to the one agreed to when the Discovery Centre was facing an uncertain future last year.
“As with the Discovery Centre, the city is supporting ERS by charging a peppercorn rent,” he said.
“In return, ERS is providing a place for Bendigo residents to drop off their recyclables, saving many thousands of dollars in landfill costs, as well as providing employment while also doing the right thing for our environment.”
Mr Scott said one of the first points of order for the new board will be to rebuild lost trust after the collapse of FEO, from which 56 employees still face redundancies and hundreds of thousands of dollars of debt remains outstanding.
"We've got to run it lean and mean – we've got to build up trust again,"
- Eaglehawk Recycling Shop chairman Leon Scott
“But it is business as usual – and we hope to grow that business – and the punter shouldn’t notice any difference when they walk into the place.”
Secretary Peter Cox said the board was confident the charity would be able to balance its books.
“This has been one aspect of FEO that has always run profitably,” Cr Cox said.
But despite the reprieve for Eaglehawk, the fate of transfer stations at Strathfieldsaye, Heathcote and Goornong – and the 10 people employed there – remains in the hands of FEO administrators.
The city's acting director presentation and assets Brett Martini said council was looking into a long-term plan for those sites.
“The FEO administration is still managing those transfer stations and that arrangement will be continuing at this point until the end of the month,” Mr Martini said.
“After that council will put in place arrangements for us to manage that directly – whilst we look at a longer term plan.”
Chairman of the board Leon Scott: Mr Scott has been involved in the shop since inception 22 years ago, but more recently having only been involved as a member of the advisory committee. Leon has been in business for 45 years, in including industrial leasing, steel fabrication and commercial building. He has also been very involved in Rotary and the community and was CoGB Citizen of the Year in 2003 and awarded the Centenary Medal and the Order of Australia Medal.
Deputy chair Rod Hanson: Mr Hanson has had a professional career with a minerals industry focus, holding senior executive roles over the last 30 years, both in Australia and overseas. His most recent executive position was managing director & CEO of Unity Mining Limited.
Secretary Peter Cox: Between 2010 -2014, Cr Cox was secretary and board member of Community Recycling Network Australia. Councillor and former City of Greater Bendigo mayor.
Independent director Jeff Cummins: Mr Cummins has held senior management positions in both the government and the private sector. He is a previous regional manager for EPA Victoria.
Independent director Fiona Naughton: Ms Naughton is principal of Rob’s Jeanery and has experience in all facets of retail i.e. marketing, advertising, cash flow, presentation.
Independent director Murray Gray: Mr Gray is involved in transport, house removal, restoration and general business. He has been a constant supporter of the recycle shop for many years.