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Dear Readers!
Public private partnerships create a win-win situation. There is no better way to sustainably safeguard jobs, create new jobs or use efficient innovations for public services and so help keep local fees and charges stable. And yet one might occasionally get the impression here in Germany that there is currently a kind of trench warfare going on between the public and private sectors. People are talking about the current trend of some local authorities to renationalise services. Something that is threatening to eliminate fair competition. There are a number of impartial studies around that have looked in detail at the pros and cons of nationalisation. The international economics research institute, e.ca economics, for example, discovered that this trend towards nationalisation is one that is catching. On the one hand, districts that have renationalised services in the past are more likely to do so again in the future. Consequently, this effect is seen more often in districts where a large percentage of the services are already being delivered by municipal businesses. On the other hand, there is also a noticeable trend towards local authorities trying to drive private sector competition out of their market, in particular in districts with a low population density.
Having worked together with local authorities for many years, REMONDIS is, of course, critical of these trends. Each and every day, REMONDIS shows that things are so much better when the public and private sectors work together. Being a partner in 50 PPP companies and delivering services via numerous third party contracts, we have perfected the concept of public private partnerships for all those involved – both when it comes to public services and water management. All in all, REMONDIS and its public sector partners serve over 12 million people. The local authorities and their residents are provided with high quality services at a fair price. At the end of the day, they are the ones who finance the public services via the fees and charges they must pay. At the same time, the municipal partners must keep a close eye on their budgets and economise where necessary. Having a reliable source of income from taxes can also help here. It is well worth taking a look at the way the different tasks are allocated in Germany.Around 35% of waste management services are provided by the local authorities themselves via their own municipal companies, which means no VAT is charged on these services. More than one third of the people living in Germany, therefore, do not pay VAT on these public services; and yet at the same time they benefit from the payments made by other local inhabitants as a result of funds being allocated between districts. The local authorities themselves lose out as they receive less tax. An unfair tax situation that ends up hurting everyone. Councils are deliberately choosing not to open up their markets even though this would enable them to cut costs. They are effectively holding back the private sector economy rather than making the most of the opportunity available to them to improve their situation and work together with the private sector to take the pressure off the public purse, increase their workforce, stabilise fees and charges and ensure they have a steady and reliable source of income.
Both we and our long-standing municipal partners agree that the best solution is to work together as partners. This special edition of our company magazine focuses entirely on the subject of public private partnerships and aims to provide a more detailed picture of the various PPP business models, the advantages they bring for local authorities and their residents as well as the positive impact they have on jobs, on the local economies and on the environment. And, as self-praise is no praise, we are more than happy to give our partners the opportunity to speak about their PPPs here. Local authorities, which would like to have a stable and sustainable budget, to provide their residents with high quality services and to achieve the highest possible levels of sustainability in their waste management and recycling sector, will find some valuable suggestions and experiences here to help them in their decision-making process. Here’s to future collaborations!
Yours
Thomas Conzendorf
Achieving mutual goals
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Public private partnerships (PPPs) between public sector customers and REMONDIS clearly demonstrate that such collaboration work makes much better business sense for both partners and is particularly sustainable. The focus here is not on the interests of the individual parties but always on the task of providing high quality services, charging a fair price, keeping the environment clean and ensuring the district has a strong and healthy future. PPPs between local authorities and REMONDIS may have initially been set up simply to fulfil a specific purpose but over the years they have become a genuine partnership of shared values.
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A PPP with REMONDIS can make the very most of the group’s 800+ treatment & recycling facilities
A tried & tested model with excellent ratings
All of the 50 PPPs involving REMONDIS are successful and generate income for the shareholders and pay both VAT and business tax to public authorities. Being a service provider, REMONDIS always focuses on delivering excellence. An extensive market research study recently questioned public sector partners to see how satisfied they were with REMONDIS’ services. The results speak for themselves: the company was judged to be ‘good’ or even ‘very good’ for the two most important criteria, ‘reliability’ and ‘expertise’.
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Sustainable financing, safeguarding municipal values
Being a shareholder in the business, REMONDIS injects its own capital into the PPP. REMONDIS’ economic strength ensures that secure capital is injected into the business and that both partners can benefit from solid, long-term financing.
Being a family-run company, we practise the values we promote. For our partners, this not only means that our collaboration is based on trust and reliability but also, and above all, on continuity – from financial matters all the way through to safeguarding jobs.
Furthermore, PPPs with REMONDIS open up many new fields of business that directly benefit the public purse. Thanks to REMONDIS investing above-average sums in its business, public sector partners can rest assured that they have access to state-of-the-art plants and facilities and a modern infrastructure.
Sustainably conserving resources
Collaborating with REMONDIS does not simply mean waste collection but professional treatment and recycling activities as well. Each year, recycled materials help cut raw material imports into Germany by ca. 20 billion euros. Moreover, the recycling sector is making a huge contribution towards cutting carbon emissions and curbing global warming.
When it comes to managing water, REMONDIS not only focuses on supplying the highest possible quality of water but also on recovering valuable raw materials – such as phosphorus from wastewater.
Access to each and every plant & facility
This collaboration work enables the public sector partners to contribute towards conserving our planet’s natural resources and preventing climate change. A PPP with REMONDIS gives them access to the group’s network of over 800 treatment and recycling plants and facilities. The local authorities can use the whole of its recycling supply chain and make the most of the opportunities available to them to drive sustainable development – especially for its public services.
Doing – sustainable – business together
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The fundamental principles of public private partnerships have been around for over 100 years now and these collaborations have proven to be a highly successful business model. REMONDIS is the perfect partner here – one that strengthens the value of public sector property and ensures that a close eye is kept on the tasks that local authorities must deliver.
Public private partnerships with REMONDIS are more than simply a business providing a range of services. They are genuine partnerships that share the same values and the same social responsibilities.
Being a family-run company with a long tradition, REMONDIS places great importance on reliability, continuity and responsibility – focusing on municipal values and promoting a healthy environment. With this common understanding, REMONDIS is able to create a strong base on which greater sustainability can be injected into public services.