Packaging Waste Regulations (Hansard, 18 December 1996)

§ Mr. Gummer

Together with my colleagues, the President of the Board of Trade and the Secretaries of State for Scotland and for Wales, I published proposals in July which aim to secure an effective business-led approach to meeting the environmental goal of a more sustainable approach to packaging waste. This followed a lengthy process of consultation with a wide range of business sectors and is based on the industry agreement on the shared approach achieved on 15 December 1995.

The system we propose is based on four guiding principles: using the market to reflect the cost of dealing with waste in the price the consumer pays; a shared approach involving all parts of the packaging chain; the lightest regulatory approach giving the maximum scope for obligated businesses to self-certify and self-assess their obligations and to perform those obligations through business-run schemes, or individually subject to monitoring by the environment agencies. continuing industry involvement in monitoring, reviewing and proposing changes to the system through the Advisory Committee on Packaging.

We have had a wide range of responses to the consultation paper including 100 from trade associations representing 53,000 member businesses and a further 348 from individual businesses and other interested organisations. Most respondents endorsed the overall framework and the basic provisions which flow from the 15 December agreement. However, the responses did raise specific concerns on issues such as the timetable, the level of interim targets, the cut-off threshold for small businesses, the wholesaler obligation and the scope and nature of exemptions. I have considered these and have sought the views of Sir Peter Parker and the Advisory Committee on Packaging and I am grateful to have their further comments which will be published separately.

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I therefore intend to make the following modifications to the draft regulations which will be subject to parliamentary debate.

To allow businesses sufficient time to assess the implications of the regulations for them and the merits of joining a collective business scheme such as VALPAK, I propose to delay the first requirement for registration and provision of data until the summer of 1997 and I will make a further announcement shortly. The date for the renewal of registration and the provision of data will, from 1998 onwards, be 1 April.

A further concern raised related to the proposed interim targets for recovery and recycling which could place an unnecessarily high burden on some businesses and particularly on those who handle materials which are harder to recover. Many felt that a slower build-up to the full directive targets in 2001 targets would be more realistic. I therefore propose to revise the interim targets on individual businesses as follows:

	Minimum recycling target for each material	Overall recovery target	Recovery of UK packaging waste
1998–99	7	38	32
2000	11	43	40
2001	16	¹52	50
¹ Of which a minimum of 26 per cent. must be recycling.

These targets will enable the UK to meet the recycling and recovery targets set out in the EC directive on packaging and packaging waste, 94/62 EC.

I have also taken account of the representations that some sectors of industry will have greater difficulty in adapting to the proposed obligations than others, particularly in the case of small firms. I also consider that the most effective means of introducing the new system will be to take a staged approach starting with the largest businesses. I therefore propose to adopt a phased approach in relation to the following aspects: No business with a turnover of less than £5 million, or that handled less than 50 tonnes of packaging will have an obligation in the years 1997 to 1999, but from 1 January 2000 an eligible business with a turnover of £1 million or more and that handled more than 50 tonnes of packaging will be obligated. The proposed wholesaler obligation will apply from 1 January 2000.

I am confident that a phased approach will allow these sectors additional time to prepare and work up methods for meeting recycling and recovery objectives in a form which meets their needs.

I have considered also issues raised by those who handle packaging which is or is associated with special or hazardous waste. Where packaging is likely to become special waste, producers will not need to include it when calculating their recovery and recycling obligations, but they will need to provide data and indicate the steps taken to promote or increase its recovery. This amendment should assist those producers that handle packaging whose hazardous or contaminated nature require special disposal arrangements.

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I also propose to place an obligation on production of reusable packaging but to exempt it when it is reused. Other more detailed changes will be set out in the published regulations.

I also recognise that for many businesses a major concern is not the recycling and recovery effort itself but the means of gathering data. Some businesses already have good data systems while many trade associations and the Industry Council on Packaging and the Environment are already working to develop sector guides and assistance with definitions and other guidance. I intend to support this work and to make available, to help to start the system, a very simple ready reckoner which businesses can use to meet the initial requirement for a best estimate expressed in tonnes per annum.

The environment agencies that will monitor and enforce the regulations will charge a fee to individual businesses and collective schemes to cover the costs of their functions. In the light of consultation, and taking account of the changes listed I propose to set the fee for individual businesses at £750 per annum and to offer schemes a rebate of up to 87 per cent. of this according to the size of their membership.

The advisory committee is continuing its work on implementation of the system and is currently considering matters relating to evidence of compliance and recent representations it has received on the issue of equitable participation in household waste recovery. It is also preparing for its review of the system as a whole. On these and other issues, it will publish its findings as appropriate and I am fully committed to supporting its continuing role.