Refuse company Sita has won another multi-million-pound contract in Sussex two years after being dumped by a neighbouring council over its appalling record.

The French-owned firm is to take on the seven-year refuse collection and street cleaning contract in Eastbourne.

The £3.09 million deal includes introducing wheelie bins and recycling boxes to homes to help meet Government recycling targets.

The contracts more than double the cost of the old contracts, run by Serviceteam, at £1.4 million.

Sita's contract was ditched a year early by Brighton and Hove City Council amid widespread public fury at festering rubbish mounds on streets.

Hundreds of homes were missed as Sita botched a shake-up in collection days intended to increase productivity.

In June 2001, Sita agreed to give up its £6.9 million contract with the council and pay back £3 million.

However, in Eastbourne the Lib Dem-run borough council lauded Sita's appointment as the start of "a new era" for the resort.

Council leader Beryl Healy said: "This is very exciting news and represents the beginning of a new era for Eastbourne, offering a cleaner and healthier environment.

"The new contract will deliver much needed improvements and help Eastbourne work towards achieving tough recycling targets central government has imposed on us."

Sita takes over from Serviceteam on April 1. A Sita spokeswoman said all existing Serviceteam workers will transfer to the firm.

She said: "Pay and conditions will remain the same and a pay award granted to workers by Serviceteam will still stand under Sita."

Council officials defended the cost of the contract.

A spokesman said: "Serviceteam had consistently claimed the old contracts were loss making.

"A comparison of prices paid for the service by other councils does support this.

"Hence, the bids received this time round for an equivalent service are significantly higher. This is estimated toaccount for £1,172,500 of the total increase.

"Secondly, the new refuse collection contract incorporates improved recycling arrangements across the town. This is estimated to add £348,350 to the total cost.

"Finally, the new contract incorporates wheeled bins. This element is estimated to account for less than £100,000 of additional cost."

He said the new contract will cost £38.16 per property in Eastbourne in 2003-04. That compares to £46.56 in Wealden, £32.65 in Hastings and £34.50 in Rother.

Opposition councillors said there would be immense disappointment if Sita repeated its crisis in Brighton and Hove in Eastbourne.

Tory opposition leader Graham Marsden said: "Sita is a very well-known, large company which has contracts in many places.

"Clearly, it failed in Brighton and Hove and I would not like to see such a repetition here in Eastbourne."

Concern in Eastbourne is focused on the cost of introducing bins and boxes to homes.

Council tax bills are to rocket and the ruling Lib Dems say is central government's fault for imposing tough recycling targets on them.

Peter Hathaway, Sita's regional director for the South-East, said: "The changes will be introduced throughout the borough within six months of the contract commencing, following a thorough survey and consultation."