The decision to wind down Kerbside, the firm which collected recyclable materials from homes in Dublin, highlights the reality of the harsh world of recycling. Despite huge public support for the venture, the Tallaght-based firm will be wound up in the near future, according to company director, Larry Rochford. Among the reasons for the decision were a collapse in the price for some recyclable materials, the high cost of collection and the firm's inability to meet the demand for its services.

The four Dublin local authorities, who were among the major financial backers of the firm, always envisaged that Kerbside would provide a city-wide service. However, nine years after its launch, the 90,000 homes it services are confined to parts of the west and south of Dublin city and county.

Amid considerable demands from other communities for the service to be extended to their areas, Kerbside added 20,000 homes to its catchment area in the last year. It collected steel and aluminium tins, plastic bottles, cardboard and glass. But the bailing capacity at Kerbside's plant was already reaching capacity. Further expansion would have required a change of premises, and a new fleet of trucks would have been required to reach the rest of the city.

The firm's problems were compounded by a blaze at its plant last year. "The company grew too quickly for its own good in latter years," says Rochford, who is also acting principal officer with Dublin Corporation. "It needed a large professional company which could come in and address the problem on a city-wide basis." The four local authorities agreed and a new consortium is due to start operations in the coming months.

The local authorities provided between £400,000 and £500,000 a year in funding to Kerbside, while the industry recycling group, Repak, provided £600,000. The company also received some Department of the Environment funding.