Incinerator losses could reach £5.4m

Monday 17th August 2009, 2:57PM BST.

Senator Ben Shenton says that the way exchange rates for the new incinerator contract are being handled is still risking taxpayers’ money

THE total loss on the incinerator euro blunder stands at around £2.2m – and could hit £5.4m if the pound falls against the euro again.

Public Accounts Committee chairman Senator Ben Shenton says that although ministers are trying to play down the loss, there is still a substantial risk to public funds.

And given signs of economic recovery in Europe compared to a continuing slide in the UK, it does not look as though rates will improve any time soon.

Senator Shenton, who is a director of an investment management firm, says that far from safeguarding taxpayers’ money, the way that the Treasury Department are handling the exchange rates over the incinerator contract is still putting it at risk.

They are effectively playing a waiting game with the euro rate to try to get the best deal possible – an approach that the Senator describes as ‘currency speculation with taxpayers’ money’.

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