End of Life Vehicles (Hansard, 21 June 2002)

§ Mr. Wilson

We have consistently made clear our intention to implement the End of Life Vehicles Directive with a light regulatory touch and without disrupting the existing legitimate vehicle dismantling, shredding and recycling market.

We will require vehicle manufacturers and importers to meet the costs of take-back and treatment of vehicles sold after 1 July 2002, as soon as regulations to that effect can be introduced. From 1 January 2007, vehicle manufacturers and importers will similarly become responsible for such costs for vehicles sold before 1 July 2002, in accordance with the terms of the Directive. This will ensure that a broadly level playing field is maintained with other main car-producing EU countries, such as France and Germany.

The Directive require treatment facilities to meet new environmental standards when depolluting and dismantling ELVs. We intend to introduce these standards during 2003. The cost of depolluting and dismantling an ELV will offset, and may exceed, its scrap value, but this will depend upon a number of factors, including the age, marque, model and condition of the ELV, the prevailing value of scrap ferrous and non-ferrous metals and other materials at the time, and the efficiency of the treatment facility. Until 2007, and the introduction of producer responsibility for vehicles sold before 1 July 2002, "last owners" will continue to be responsible for the disposal of their vehicles, and will be free to negotiate their end-values with treatment facilities. Some ELVs will retain a positive value, and we would expect that new depollution and dismantling costs to be reflected in the market value of second-hand vehicles.

Additional costs incurred by local authorities as a consequence of the transposition and implementation of the Directive would, under the "New Burdens" arrangements, fall to be met by the Department of Trade and Industry.