Amsterdam’s finance and economic affairs alderman has resigned during a deep-rooted dispute with the other coalition parties about how to solve the problems at the city’s troubled waste incineration company AEB.

Udo Kock, an alderman for the Liberal democratic party D66, stood down on Wednesday because the other three parties have refused to consider privatising the company – something he considers to be the best option financially.

Kock believes the council should sell a majority shareholding in the AEB, which is only operating at partial capacity after two of the six incinerators were shut down because of maintenance issues.

Selling a stake, in return for a capital injection to carry out essential work on the plant, would limit the cost to the city, Kock said.

However, officials from GroenLinks, the Socialists and Labour party refused to accept partial privatisation.

They want to keep a majority stake and, according to the Parool, prefer an alliance with HVC, a cooperative waste incinerating company based in Alkmaar. HVC is owned by 46 local authorities and several water boards.