Big defects were found in a rubbish collection service when councillors took it on three weeks ago.

Chief executive David Panter took responsibility for the service when Brighton and Hove City Council decided to run it in-house rather than offer it to another private operator.

He found poor management, a lack of investment in plant and premises, a high dependency on low-paid agency staff and overtime, a lack of personnel files and uneven distribution of work among the men.

In a report to councillors, he said defects had contributed to the poor morale of staff and the poor service.

He added: "They have also contributed very significantly towards the high cost of the service."

Mr Panter said top priority was being given to improving the management of the service.

Discussions were also progressing with the staff and GMB union over a partnership agreement which would focus the council and workforce on delivering improvements.

Regular meetings are taking place among staff to see what improvements can be carried out in the meantime.

The council is spending £200,000 a month on hiring vehicles since the previous operator, Sita, departed.

Neither the council nor the workforce selected the fleet and there have been problems in matching the right men to the right vehicles.

Extra cost of the council takeover will be £1.5 million during the remainder of the financial year, contributing towards a total possible overspend of £5 million.

But Mr Panter said once the service was up and running properly, efforts would be concentrated on how to reduce the cost.

He said there had been big teething troubles but added: "There is a high level of commitment within the organisation to make the arrangements work."

A best value review of the service will start in January next year to look at what improvements are needed.