THE taxpayer-funded body charged with delivering on the Scottish Government's strategy for waste prevention to curb climate change is spending an 'astonishing' £9m on outsourced public relations and communications - despite 'being in financial trouble'.

Zero Waste Scotland (ZWS), which is funded primarily by the Scottish Government has sought contractors to take on the communications work as it pays off a £6.5m loan from ministers due to cashflow issues, it has emerged.

The £9m external communications contract, that has been sought over eight lots and amounts to a third of the body's income for an entire year.

It is aimed at providing what ZWS describes as "creative, design, digital, public relations, print and media monitoring" services to support its work. The contractors will work alongside an existing communications team.

The company was set up 10 years ago to deliver on the Scottish Government's vision for a zero waste society, through measures such as increasing recycling rates and cutting the amount sent to landfill.

As a company limited by guarantee there are no shareholders and it is the members that control it. Scottish ministers and the six non-executive directors are collectively known as the firm's members.

In 2021/22 it was funded primarily through a £21m Scottish Government grant with £1.7m coming from European Regional Development Funding (ERDF).

The body has had a four-year corporate plan agreed by ministers and says that a core grant of £18.6m was greed for 2022/23.

According to financial statements, it had agreed a four-year taxpayer-funded loan to the tune of £6.5m from ministers with interest payable at 1.75% a year.

This came as a result of "uncertainty" over cash flow believed linked to delays in ERDF payments.

As of March 31, last year, there was an outstanding balance against the loan of £4.2m - with the body's board saying they were able to "accelerate" a repayment plan.

The ZWS board in its latest annual financial analysis which came before the body sought the £9m communications contracts stated that the timing of the receipt of ERDF funds "has been the main uncertainty for the company in terms of cash flow and so the company liaises closely with the Scottish Government in this respect as well as actively managing its cash and commitments levels in supplier contracts and grant arrangements to minimise irrevocable commitments".

READ MORE: SNP finances whistleblower calls for inquiry into police response

But they signed the company off as a going concern saying they were able to fully recover ERDF "losses" through the ministers' loan.

Jack Irvine, executive chairman of communications and public affairs firm Media House said it was an "astonishing financial commitment by Zero Waste Scotland at a time when Police Scotland and other public services are struggling to keep up with inflation".

The Herald:

The PR guru added: "The work I carry out in London and abroad is highly remunerated but the sums I am seeing here are jaw dropping. One can also tell from the wide spread of disciplines required it will also need a huge in-house management presence to manage the contractors."

The ZWS procurement document state that the lots are for an initial two years which is subject to two 12 month extensions.

Another communications and PR firm consultant told the Herald on Sunday that it was "baffling that such a financial commitment was being made" when the body was "appeared to be in financial difficulties".

"It is incredible that the company needs a loan to for cash flow issues, and on the other hand is happy to spend so much on this contract," he said. "There has to be serious questions over whether this is at all value for money for the taxpayer."

Ministers said at the time of the launch of ZWS that achieving zero waste would make a positive contribution to Scotland's climate change and renewable energy targets.

As more waste is prevented, less is sent to landfill, and more resources are reused, recycled and recovered.

READ MORE: Scots firms get nothing from £220m ferry deals given to Turkey

According to documents sent to would-be contractors, the ZWS communications support aims to help encourage people and businesses to move to a circular economy - a model of production and consumption, which involves sharing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible.

Some £250,000 will be spent on extra public relations services on top of the current in-house team to "implement a range of specific communications campaigns that engage and motivate our key audiences".

Objectives include "enhancing the reputation and credibility of Zero Waste Scotland as a corporate brand..."

Zero Waste Scotland's video on what a circular economy is.

It also wants "effective distribution of our news and high-profile communications through close alignment with key stakeholders".

And it says the object is also to position Zero Waste Scotland as "influencers on key issues".

An extra £80,000 will be spent on media monitoring providing "daily updates and full cuttings from a comprehensive range of print, digital and broadcast platforms and titles, all collated and presented in a way that is quick and easy for the users to view".

READ MORE: 'It shouldn't be relied on': 40-year-old CalMac ferry makes a return

Most of the money will be spent on "creative services" which involves research, strategic planning, copywriting, photography and video and management of media planning aimed at bringing their goals into the mainstream.

Some £1m will be spent specifically on tackling food waste, with the agency telling would-be contractors that it is a "key priority" for the Scottish Government which has established a "landmark" national target of cutting it by 33% by 2024.

The money will provide "specialist public relations support to work closely with us to develop an over-arching plan for public relations activities and deliver a series of creative, persuasive, dynamic and high-impact food and drink".

Another £1.2m is to being offered to provide a communications strategy to assist Scottish local authorities undertake changes to their kerbside collection service.

This relates to new household waste recycling centres and campaigns to help increase household recycling and participation rates.

Mr Irvine added: “Even the small lots are a cause for bewilderment. They have budgeted £80,000 for a contractor to carry out media monitoring. I have news for them. Tell the board and management to key 'Zero Waste Scotland into their Google search engine and they will receive immediate notice of stories.

"Why wait 24 hours while some PR junior collates it for you?

“However, it is the two large contracts [on Creative Services] which makes one wonder if it would be more cost effective to sack the internal team and let the outside contractors get on with the work.

The Herald: Zero Waste Scotland says a lot of food is wasted due to confusion with the current system

“The procurement document states that the Zero Waste Scotland communications team is responsible for all corporate and programme specific activities across the organisation and is looking for a single supplier to provide a range of services including, research, strategic planning , concept creation, creative development , art direction, asset creation , digital services, copywriting.

"So, here’s my question? Who’s doing the work, the internal team or the contractors?"

As of August, 2022, the Zero Waste Scotland board state they have "confidence" that it can operate as a going concern over the following 12 months.

They say that cash and commitment levels are "actively managed to ensure that the organisation continues to have sufficient liquidity and flexibility to adapt as plans change".

The board say that "termination clauses" are put in all supplier contracts and grant arrangements to "minimise irrevocable commitments".

ZWS says that the range of 'lots' available in the contract framework will enable ZWS to be "as cost effective as possible..."

It said the £9m estimated costs stated in the procurement contract were "not confirmed budgets or agreed future spend".

A ZWS spokesman said: "The majority of communications activity is carried out by the internal communications team. Contracts awarded through the framework will augment Zero Waste Scotland’s day-to-day communications activities, as well as provide support to our partner local authorities. The framework will run for an initial two-year period and there’s an option to extend the framework for an additional two-year period at the end of this window."