Invercargill MP Sarah Dowie says it's time for a ceasefire of this week's "ping pong" between Southland disAbility Enterprises (SdE) and Southland's territorial councils after a war of words and heated public debates.

Southland is no closer to finding a resolution over who will process the region's recycling when SdE's contract ends at the end of the month — with Ms Dowie saying today that it's time for all parties to come to the table and negotiate.

The issue has become highly contentious after contractor Southland disAbility Enterprises publicly disclosed that it was told it was no longer the preferred tenderer for recycling services when its contract expires at the end of the month. Doing so broke confidentiality in the ongoing contract negotiation process with joint council venture WasteNet.

SdE employs 110 people, 82 of whom have a disability.

This week, Southland's three territorial councils were divided in their final votes around the future provider, kicking off a tit-for-tat of public statements between the councils and SdE.

Gore District and Southland District Councils unanimously voted to adopt WasteNet's recommmendation for a different contractor, while Invercargill City Council (ICC) voted against WasteNet's recommendations after a lengthy extraordinary council meeting.

Since then GDC mayor Tracey Hicks and SDC mayor Gary Tong released a statement recounting "serious concerns" about the tender process and explaining the financial circumstances behind the decision to go to tender.

At the time of entering into negotiations with the preferred tenderer, there was an $11 million difference in price between the two proposals over the 16-year contract, they said. 

In response, SdE chairman Stephen O'Connor issued a statement today countering many of their claims, saying the mayors' joint statement "has not provided an accurate account of how the Council's [sic] have found themselves in the current position."

He confirmed SdE had made an initial request in June last year for a variation to the contract to provide for an extra $700,000 per annum (later revised to $380,000pa) – a request made based on the dramatic changes in the recyclables commodities market and increased operating costs. The contract price had not been reviewed in seven years and SdE, like other recyclers throughout New Zealand, was severely affected by the collapse of the recyclable commodities market, he said.

"During these discussions, and throughout the contract renewal negotiations, SdE has made available all of its financial information to WasteNet."

Ms Dowie said today she maintained her support for SdE for its social and environmental contributions even though the company may have some financial issues to address.

"Every business has different matters to work through and I don't think these are anything unusual that can't be worked through."

She said many of her constituents told her they would be willing to chip in a couple of extra dollars in their rates to support the enterprise.

"I think it's time that SdE and the council had a ceasefire in the media and probably got round the table and started to open up dialogue about the situation moving forward."

"Not withstanding all of the ping pong and the matters that have been raised, I really cannot still to this day understand why we can't get around a table and have some open dialogue to move this forward."

Clutha-Southland MP Hamish Walker, who also came out in support of the company, said he still supported SdE retaining the contract.

"At the end of the day, the councils have to weigh up their decisions and choose a preferred tenderer. I don't have all the information that they have available, but I hope they place a certain amount of weight on the fact that it's an excellent organisation who've done a great job for the community for a long time and hopefully a long time in the future."

In what may be the last statement made for the time being, Mr Tong and Mr Hicks said this evening they were not going to engage in a tit-for-tat debate as they believed it would further damage ongoing relationships, "and add extra stress and confusion for everyone".

“We have asked our staff to fast-track the review of what further information can be released without jeopardising any future decision around this tender process, which remains live.”

The mayors said they believed it was essential the public had the opportunity to have as much information as possible so they could make an informed judgement.