A new waste collection contract which sparked one of the country's largest council tax rises is about to begin in Eastbourne.

French-owned refuse company Sita UK - criticised elsewhere in Sussex for its performance - is preparing to start its £3 million, seven-year contract in the resort.

It takes over from Serviceteam on Tuesday with a deal that includes introducing wheelie bins and recycling boxes.

The deal, costing more than £1.6 million next year alone, is the main reason why Eastbourne residents have been hit with a 38 per cent council tax rise.

It is among the highest rises in the country, with average Band D properties having to pay more than £1,209.

Eastbourne Council bosses have expressed regret over the huge rise but said it was unavoidable because the seven-year Serviceteam contract was at an end.

Deputy council leader David Tutt said: "The largest single factor in determining the council tax level was the refuse issue.

"We took the best deal that was available and paid the going rate for collecting waste. The choice we were faced with was do we appoint a contractor or allow rubbish to pile up.

"We had considered a number of options, including bringing the contract in-house but that would have been far more expensive. In the end we went with the best offer available and that was Sita."

Another factor in the rise was the Government's decision to give generous grant settlements to councils in the north rather than the south.

Coun Tutt asked residents to lobby the Government as the same could happen next year.

However, council bosses stressed that despite the large increases, Eastbourne residents will still pay less than those in Wealden, Hastings and Lewes.

Sita attracted criticism when it ran refuse collection in Brighton and Hove. The city council terminated its contract a year early in 2001 after rubbish piled up on the streets and hundreds of homes were missed.

Eastbourne councillors are optimistic, however. They have lauded Sita's appointment as the start of "a new era" for the resort.