§ Mr. Sydney Irvingasked the Secretary of State for Industry if he will make a further statement on the action he intends to take towards the implementation of the objectives set out in the Green Paper "War on Waste" with regard to the collection and recycling of waste paper, so far as his departmental responsibilities are concerned.
§ Mr. Michael McNair-Wilsonasked the Secretary of State for Industry what representations he has received from the British Paper and Board Industry Federation about Government financial assistance towards creating a stockpile of waste paper; and what, if any, answer he has given them.
§ Mr. Meacher:The Advisory Group on Waste Paper Recycling was established last August with myself as Chairman. Its immediate tasks were to establish a target for a substantial, long-term, controlled increase in the usage of waste paper by 62W the paper and board industry; to consider how this level might be achieved; to examine the obstacles to long-term growth; and to formulate proposals designed to overcome such obstacles.
In doing this the group agreed to take particular note of how such problems were being tackled in other countries. The basic fact-finding tasks are now nearing completion and the group is turning to a consideration of specific solutions.
When the group began its work we were faced with a very severe shortage of waste paper. Recently the demand for new paper and board products has fallen considerably, with a consequent decline in the need for waste paper. This decline in demand has been world wide and stems from the general drop in economic activity. Coming, as it did, immediately after a period of peak demand and supply, paper mills and merchants rapidly built up stocks of waste paper and now have some 200,000 tonnes stockpiled. They have said that against a background of falling order books and liquidity problems they must in future reduce their intake of waste paper to cover current production needs only. In practice this means that for the time being waste paper supply exceeds demand by between 7,00015,000 tonnes per week.
The advisory group accepts that any scheme which is intended to provide a significant and long-term smoothing of the peaks and and troughs of waste paper demand calls for careful study. These problems have defied solution by the industry alone for 50 years, and rushed proposals might not produce long-term sustainable remedies. That is why parties from the advisory group have just visited Japan, where an excess stocks scheme has been in operation for nearly a year. and also the Netherlands where such a scheme is now under discussion.
As an interim measure, however, representatives of the paper industry came to see me in December 1974 to ask if the Government could quickly provide several million pounds to finance additional short-term stockpiling. I had to explain that under Section 8 of the Industry Act 1972 financial assistance could only be provided on an industry-wide basis where it could be shown that it could not appropriately be provided otherwise than by the Secretary of State. Nevertheless, I 63W said that if such a case could be made out I would be happy to give it urgent consideration. This remains the case, though so far I have not received any application.
More recently, I have been very much aware of the widespread concern and frustration felt by charities and voluntary groups up and down the country which have been collecting waste paper not only to raise funds but as a means of conserving natural resources. I therefore asked representatives of the papermakers, the merchants and the local authorities to meet me again on 13th February. I again asked them to review their stockpiling policies and in particular to consider what relief they could provide to the voluntary bodies which had been left holding stocks. I am glad to say that, since that meeting, the main mills and merchants have confirmed that, despite their own difficulties, they will take in stocks held by their regular voluntary collectors. The question of Government financial help was also raised again at this meeting, and I repeated that as an interim measure I would look urgently at any case which fell within the ambit of the Industry Act 1972.
I should like to pay tribute to the invaluable advice and co-operation which I receive from all the members of my advisory group. They are drawn from the paper industry, merchants, local and central Government, the trade union movement, and the research field. The group hopes to be able to make an interim report in the spring and I have every confidence that this will contain long-term proposals for mitigating the effects of the violent cyclical fluctuations to which the waste paper trade is prone. If some measure of stability can be assured, local authorities will be able to invest in capital equipment with greater confidence than has been possible in the past; and with an improved flow of information voluntary bodies will be spared to some extent the problems which arise from the unexpected cut offs which have occurred every time the market has turned down.
It is not an exaggeration to say that the future of a sizeable section of the British paper industry depends on a reliable and increasing supply of waste paper. With full co-operation I am convinced we can ensure that.