A MAN is starting a petition to save the business he claims Darlington Borough Council has run into the ground.

Michael Grey, of Treesavers, has run a kerbside recycling initiative in the Darlington area for eight years, employing 11 people.

But the borough council is planning to start its own scheme in September, creating up to 14 jobs, and has stopped paying recycling credits to Mr Grey - the amount they paid him to carry out the work which saved them money on refuse collection.

But Mr Grey says that since the payments stopped he has been operating at a loss and publicity about the new scheme has confused people.

He said: "A lot of people have got the impression that I have stopped and it is seriously affecting my business.

"I am 20 tonnes of recycling a week down and so my profits are down. In fact, I am running at a loss and 11 people could lose their jobs."

Mr Grey believes he should get compensation from the council for the their decision to stop paying the credits, which he claims accounted for 55 per cent of his income.

He said: "My options are to carry on without credits which would be impossible, close the business, or carry on collections as normal until the new scheme starts and then hand business over to them, but I have been told that can't happen."

Mr Grey has already had to sell his premises and says he can only continue until the end of the month.

He said: "They are putting me out of business. I am going to start a petition because I know a lot of people support me and want me to carry on. I also want help advertising that I am still operating."

The council scheme, backed by a £500,000 Government grant, will operate fortnightly. Mr Grey operates a weekly service but a council spokesman said its collection service would be superior.

He said: "The new service will be better value for us and a better service for people.

"We will cover the whole borough while Mr Grey did not and we will also collect more materials.

"Mr Grey did not tender for the contract which he was free to do. We will be contacting his employees asking them if they want to apply to work for our service."