AN under-fire council last night defended turning away cheaper British bids to award a multi-million-pound bins contract overseas – despite growing fury at the decision.

Facing mounting anger after ordering 225,000 “twin bins” to be built in France despite a UK firm bidding £250,000 cheaper, Durham County Council issued a three-page statement explaining the move.

The Wheeled Bin Procurement update was sent to all councillors and to The Northern Echo, which exclusively broke the story on Monday.

In the document, the council says the £4.2m contract, which includes manufacturing the bins and delivering them to households, was awarded to Environmental Systems Expertise (ESE) because the firm provided the “most economically advantageous tender”.

Having scored all five bids, 60 per cent on price and 40 per cent on quality, ESE’s offer was the second most competitive financially – at £1m less than the council had budgeted for – and most competitive overall, it continues.

The council said ESE Ltd is a UK company based in Coalville, in Leicestershire, and ultimately owned by Stirling Square Capital Partners, of London.

However, according to ESE’s website, it is part of ESE World BV, based at Maastrict Airport, in the Netherlands.

It has manufacturing sites in Germany and France.

No one from ESE was available for comment last night.

The other bidders were MGB Plastics, of Rotherham; SSC Schaefer, of Hampshire; and Straight PLC, of Leeds.

The council said European rules banned it from favouring British firms.

Questions were yesterday raised about why councillors were not involved in the decision to award the contract.

The council said an implementation plan was agreed by cabinet in March.

Ian Porter, of Tow Law, yesterday filed an e-petition on Durham County Council’s website aimed at forcing a review of the decision.

It also emerged that a councillors’ seminar on recycling and rubbish collection has been called for early next month.

Using the Freedom of Information Act, The Northern Echo formally requested access to the bid documents. A response could take several weeks.

John Shuttleworth, an independent councillor, said: “Everybody I speak to is furious about this. People are very upset. We are trying to support British jobs. This is not fair and it is not right. We have a moral duty to try to maintain jobs in the county, region and country.”

Nigel Martin, leader of the opposition Lib Dems, said: “I am very disappointed that the council did not see fit to use a British company, especially when it is cheaper. I am appalled.”

The council said extending the twin bin system of fortnightly rubbish and recycling collections across County Durham, due for April, will save £1m a year and increase recycling.

Last night’s statement further reveals: 􀁥 The bid quality assessment, worth 40 per cent of the overall score, included testing whether bins fitted the council’s lorries and the supplier’s ability to deliver the project on time and co-ordinate it; 􀁥 ESE’s bid scored 93.1 per cent, while the failed bids scored 63.9 to 75.6 per cent; 􀁥 The cheapest bid was ranked fourth out of five overall; 􀁥 Delaying the introduction of twin bins would reduce the project’s expected annual savings by £90,000 every month; The document concluded: “The council is confident that it has selected the best supplier available for this project and a successful roll-out will provide important savings towards the medium-term financial plan as well as improving recycling rates and customer satisfaction to its residents.”

The Labour-led council faces cuts of nearly £150m and is axing 1,600 jobs.