ONYX, the company which is pulling out of its contract to collect rubbish in Wycombe district, has won a new nine-year deal to carry on collecting.

It will get £2.5 million a year from April, at least £1 million more than it gets now. Earlier this month the Free Press reported that Onyx was losing money on the contract and would pay the district council a substantial sum to end it early.

A confidential meeting was held on January 25 to choose a new contractor and six firms were invited to tender. Three did so, including Onyx. They were all considered anonymously. Councillors did not know Onyx had bid again.

Cllr Ted Collins, council Labour group leader, said Onyx should not have been allowed to bid again but said the council had to choose a firm or bins would not have been emptied after April.

Cllr Chris Oliver, the council's chairman of planning environment and transportation said: "We could have said we won't let them bid, but it wasn't an issue."

He said no-one had voted against the Onyx bid on the night. The Onyx bid was slightly higher than the cheapest, but considered better in terms of management and service. Onyx won the first contract in 1996, with a tender of £1 million a year, plus yearly updates for inflation but Onyx couldn't do it for the money.

Cllr Oliver said that first bid had probably underestimated some of the difficulties in High Wycombe.

There were thousands of complaints for the first few weeks, until the company laid on extra rounds. The compensation to Onyx will offset extra costs for the next two years. It is thought the compensation will be between £500,000 and £1 million.