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Angela Smith
I thank the hon. Gentleman for that intervention. He points to the importance of society recognising the win-win situation here. Nobody likes waste, and common sense tells us that if we can reuse it, we should. The ingenuity of modern science is such that it looks as though waste paint can be used to manufacture certain types of concrete. Work on that is ongoing. One only has to look at the paper industry to see what can be done if our minds are truly focused on maximising the potential from waste products.
The hon. Gentleman mentioned that the BCF is in his constituency. I have the world-famous Ronseal in my constituency, a very old company headquartered in Chapeltown. It is now officially Sherwin-Williams, but to local people it will always be Ronseal, a famous name. I have to say this: it does exactly what it says on the tin. No doubt every hon. Member present has used one of its products at some point.
I am proud to have such a company in my constituency, not just because of its amazing slogan that is now part of the language, but because it is good in every way. It makes quality products. It has a workforce to be proud of, who are very loyal to their employer, and it has a real commitment to innovation. I had the pleasure of visiting the company once again the other week to be shown how it is changing its manufacturing processes to decrease waste wherever it possibly can, not just because that is good for the environment but because it is good for the company as well. It reduces cost and effectively improves productivity.
I do not think there will be any division here today on just how important the paint and coatings industry is to the British economy. The sector supports some 300,000 jobs and sells 675 million litres of coatings each year. If we do the maths, that works out at 21 tins of coatings sold each and every minute of the year. The sector directly contributes £180 billion per annum to the UK’s GDP and is a great exporter to the rest of the world.
Why do I and the industry believe that a circular economy is important to the sector and to consumers? Before answering that, I will first set out the scale of the problem that we as a country face with leftover paint. The best way of putting it is to relate it to everyday experience, and I do not think Members of the House will be any different from the rest of society on this one.
There is no doubt that in our garages and sheds we all have unwanted and unused paints. The average UK household has six cans of leftover paint—probably more in my case, if I am honest—taking up space somewhere on the premises. Although some of that paint is no doubt kept for repair and touch-up work in the future, some 30% of people have responded to surveys saying they over-purchased the product in the first place. It is easy to see why that might happen. People overbuy paint because they want to buy from the same batch to get the same colour, which can lead to some of the oversupply problems. Through the project PaintCare, the industry is trying to develop tools to enable customers to be more precise about what they buy, which can only help the situation. I applaud that initiative.
The cost to local government of disposing of the 55 million litres of waste each year, or 71,500 tonnes, which is equivalent to the weight of a luxury cruise ship—albeit, I admit, a fairly small luxury cruise ship nowadays—is estimated at about £20.6 million. The problem is mainly left to local authorities to deal with through general waste or at their household recycling waste centres.
Currently, only 2% of paint or other coating is reused or remanufactured. Most of the remaining 98% is lost to us as a resource, principally because it is incinerated or ends up in landfill. The reasons for that are many and varied, but in the main it is due to the fact that two-thirds of household waste recycling centres do not accept liquid paint, because the disposal of liquid waste, including liquid paint, to landfill is banned in the UK, pursuant to EU requirements. The cost to local authorities of dealing with it is very high, which means they are effectively disincentivised and feel unable to accept liquid paint as part of their waste collection service. Householders are therefore often left with no option but to dispose of paint in general waste. In other words, many residents throw away their waste paint in the normal waste collection, no doubt in black bags so that the bin men do not see it. By so doing, they pass on the problem to others to deal with.
PaintCare consumer research also indicates that 62% of households would use their household waste recycling centre to dispose of waste paint given the opportunity, which points to the importance of that network as a means of disposal for leftover paint. I therefore very much welcome the BCF PaintCare project. I pay tribute to the BCF—it is located in the constituency of the hon. Member for Mole Valley (Sir Paul Beresford)—which has been assiduous in pursuing this project for the reason I outlined earlier: it is good for society, the environment and business, so it is a win-win all around.
The PaintCare project is attempting to turn an environmental threat into an opportunity by working towards a systematic approach to collecting and sorting waste paint. It will also make the remanufacturing of paint from waste products a more viable economic process, as the hon. Gentleman pointed out. However, a remanufacturing industry needs a market—I will come to that point later. The project also involves the BCF working with local government to develop new processes to deal with the waste. At the same time, paint manufacturers are investing millions of pounds in projects to demonstrate how remanufacturing can be made more viable, with a view to developing a long-term market for it.
That innovative work is an excellent example of how a circular economy can work and secure both waste reduction and economic growth. I know that the Minister has a certain view of circular economies—at least, she said in a previous debate that she does not like the term. I also know that there can be a negative side to the concept of the circular economy, because it can be seen to trap economic growth within a certain space, but in my view it is a sophisticated way of describing a common-sense process that has the potential to make the circle bigger and encourage economic growth. There is a saying—I do not know whether it is special to the north of England—“Where there’s muck there’s money.”
Angela Smith
Yes, “Where there’s muck, there’s brass”.
The important point is that, wherever possible, we should be generating economic growth from waste. It does not matter which term we use to describe the process by which we systematically embed this concept into our economy more generally; we should be committed to doing it. If we are to embed the circular economy on a national scale, it needs Government support. I therefore challenge the Minister to act and to commit to ensuring that 5% of all Government painting contracts use paint products containing a significant percentage of remanufactured content. That will help to stimulate a market for reused paint.
Paint manufacturers are doing their bit; the Government must now step up and play their part too. After all, many companies of all sizes are demonstrating their willingness to invest in this sector and in solutions. Several million pounds has already been invested in commercial ventures and in supporting social enterprises. If the Government are really going to have an industrial strategy—I believe they are serious about doing that—let us ensure that that kind of commitment is at the heart of the process. Let us ensure that the concept of making the best possible use of our resources and recycling them over and over again is embedded within the industrial strategy.
As long as we have houses to paint, and as long as consumers have a desire to protect and look after their homes, we will need a painting industry, which means that we will also have an issue with leftover paint leaking into our environment or being disposed of in general waste. We need to tackle that issue, so creating a circular economy in paint surely makes perfect sense. Not only will it benefit the environment; it will help hard-pressed councils to reduce costs and create a new industry in the remanufacturing process. Like many things, however, Government assistance is needed to help that contribution to the circular economy to grow and prosper. I therefore ask the Minister to update the House on the Government’s progress in this area. Will she commit to a 5% Government target? It is interesting to note that California in the United States—one of the more progressive elements of that continent as it stands now—has made that kind of commitment to procurement, and I think there are initiatives along those lines in New Zealand. The UK should take the lead in Europe. If we are going to leave the European Union, let us at least make the most of where we are and show a bit of leadership on this issue.
What work is the Minister doing with the industry to develop the innovative approaches we need to deal with leftover paint? What will she do to help local government to develop capacities to deal with the mountain of waste paint that we consumers leave behind each year? I look forward to her response and the responses of the other Front Benchers.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dr Thérèse Coffey)
I thank the hon. Member for Penistone and Stocksbridge (Angela Smith) for leading this debate on the circular economy for leftover paint. I am off script now, but I also want to thank my officials for doing their best to produce an interesting speech. This issue clearly matters, but let us try to spice it up a bit with some real candour.
We have all been through the ritual when doing DIY of going to B&Q, Homebase or whatever, doing the painting and ending up with half a tin of paint that simply is not used. Being the good people that we are, we do not like to throw anything away, because we may need to touch it up again later. That has led to the situation that has already been described. The average UK household has six cans of leftover paint stored in their home, and surveys show that people buy more than they need. I agree strongly with the hon. Member for Kilmarnock and Loudoun (Alan Brown) that a lot of focus needs to be put on consumers thinking about what they actually need to paint the rooms that they are looking to decorate. I am afraid I do not think a website will particularly help with that, so there is a lot to be said for retailers and manufacturers being proactive in their discussions with customers and promotion of products.
Only a small proportion of leftover paint is remanufactured, despite the economic and environmental benefits that it is suggested that could deliver. The all-party sustainable resource group and the all-party parliamentary group on manufacturing have produced some interesting reports, including the “Triple Win” report, which the hon. Member for Huddersfield (Mr Sheerman) co-authored. PaintCare’s report “Creating a circular economy for leftover decorative paint in the UK” was launched about a year ago. Both those reports offer suggestions about how to increase the opportunity for this market.
Like others, I do not really like the phrase “circular economy”—I am more into thinking about being resource efficient—but I accept that it has become the lingua franca. There are opportunities to make money; one person’s waste can be another person’s raw materials. It is important that we do our best to make best use of materials and resources and keep them in circulation for longer, wherever that makes sense for the environment, the economy and society as a whole. I would argue that the market and businesses already get that, especially in an age when precious resources are increasingly scarce and regulatory frameworks and fiscal challenges promote the reuse of products rather than the use of virgin raw materials.
I accept that if we are to achieve the transition to a circular economy, innovation is essential—not only the development of efficient new business models but the innovations to which the hon. Member for York Central (Rachael Maskell) referred. I will bring to the attention of my hon. Friends in the Department for Business, Energy and Industrial Strategy the research project and the institute that she mentioned, but she will be aware of my right hon. Friend the Chancellor’s comments about Horizon 2020 projects and his intention for the United Kingdom to remain engaged in those—and indeed our own funding streams—on the basis of value for money.
Rachael Maskell
One of the concerns from both academia and from where there is applied research is that 2020 is only just round the corner. People are now looking beyond 2020, to what their futures are. Although I heard what the Chancellor said, it is important that we look to the future and give further guarantees to ensure that projects continue.
Dr Coffey
I recognise what the hon. Lady says, but it is not unusual for a Government to talk about the spending envelope for which they have responsibility. I am not privy to what will be in the autumn statement next week or in future Budgets, but given that my right hon. Friend the Chancellor has talked keenly about the need for future investment and having innovation as a key priority, I am sure the hon. Lady and I will both be listening with interest to what he has to say next week.
The hon. Lady also referred to VAT. She knows it goes against EU law to not charge VAT. A considerable battle was eloquently championed by her hon. Friend the Member for Dewsbury (Paula Sherriff), among others, to try to secure zero rates for certain products, but who knows what the future holds once we leave the EU or what the future of VAT will be?
Kerry McCarthy (Bristol East) (Lab)
I apologise for not being here at the start of the debate, Mr Brady. I was making an application to the Backbench Business Committee for another debate.
Is the Minister aware of the report by WRAP—Waste and Resources Action Programme—which claims that by 2030 the circular economy sector could require an extra 205,000 jobs, but that if we embarked on what it calls a transformational scenario, whereby we are incredibly ambitious about it, it could create more than half a million jobs? Does she feel this is something that can simply be left to the market or should we be far more proactive? It would also potentially offset about 18% of the future job losses expected in skilled employment, so it could be of real benefit.
Dr Coffey
The good news is that this Government have successfully created more jobs than the rest of the European Union put together over the last six years. I am not aware of the unemployment forecasts the hon. Lady is referring to. I have no doubt that new and efficient profit-making business models will create jobs. The Government are currently negotiating with the rest of the European Union on the circular economy package, so there is an element of the regulatory framework that may create incentives. However, Governments often create regulations that prevent the circular economy from functioning as effectively as the markets coming up with those opportunities. Often, regulation gets in the way.
In DEFRA we have been working constructively with organisations such as the British Coatings Federation on making better use of leftover paint, including identifying potential regulatory barriers to its recycling and remanufacture and how those might be overcome. We welcome the federation’s voluntary initiative, PaintCare, which aims to promote the reuse or remanufacturing of about 20 million litres of paint that would otherwise end up being disposed of. It is good to see the paint industry seeking to resolve this waste problem through creative thinking and working in partnership.
As the PaintCare initiative has developed, DEFRA has been looking at the regulatory barriers. As part of that, the Environment Agency is providing detailed guidance to determine the parameters within which materials such as leftover paint can meet end-of-waste criteria, through its IsItWaste tool. The agency will continue to work with such programmes and businesses to facilitate the development of operations to encourage further reuse of valuable materials.
We are aware of the challenges with many household waste recycling centres not accepting paint for recycling. The PaintCare report points out that councils face various challenges with that. DEFRA is engaged in regular discussions with the Department for Communities and Local Government about providing effective household waste and recycling services, but it is for local authorities to decide the best disposal options for paint and other materials, based on what options and facilities are available locally and what the market generates.
Dr Coffey
I was about to answer the hon. Lady’s point about the postcode lottery and wanting a universal system. She gave the interesting example of how Tetra Pak, which is subject to elements of extended producer responsibility, came forward with its special process to try to make sure that as many Tetra Pak cartons as possible are collected. The EPR principle does not currently apply to paint, but perhaps it should. Instead of putting the onus on—dare I say it?— councils and central Government, perhaps the paint manufacturers themselves should think about how they start to ensure that paint is collected in every local authority area, which would then help them to reuse it in remanufacturing and similar.
On pricing, I was surprised when I suddenly detected some conservative notes from the hon. Member for York Central. She is absolutely right that one of the best ways to shift remanufactured paint would be for it to be cheaper than standard paint, and people can feel virtuous about it as well. I recognise that that is not as straightforward as it sounds, because the process needs investment and so on. Nevertheless, there are ways to encourage people to do things, often by pricing.
Through WRAP, guidance is provided to local authorities, including options for best practice when dealing with paint through reuse schemes such as Community RePaint, which I am sure hon. Members are aware of. It is a UK-wide network of more than 60 community-run paint reuse projects. However, the numbers are limited and quite a lot of them are concentrated in certain parts of the country. Perhaps we will want to consider not only encouraging manufacturers but good local schemes to come forward.
Rachael Maskell
I want to come back to the relationship between central Government and local authorities, because we clearly have a problem at the moment. Only 2% is reused or remanufactured, yet we know the potential in the industry is huge. What interventions will the Government make to support local authorities to be able to increase beyond the 2%?
Dr Coffey
To be candid, I am not sure that central Government are going to do anything apart from what I have already described in relation to the WRAP guidance and the Environment Agency. I personally believe we should try to reduce the amount of paint coming into the system in the first place. We need a better consumer understanding of how much paint is needed to paint a room. People should be able to take the room measurements to the shop and easily calculate how many litres are needed. That is the best way to prevent the problem in the first place.
Rachael Maskell
The circular economy is not an either/or strategy; it is both. It is about having active interventions to drive an agenda forward. We have a real problem with paint, as we have heard so eloquently put this afternoon. The Government standing back and saying they will make no further interventions means that local authorities will never have the means to move the agenda forward, so I press the Minister again about what interventions she is prepared to make to progress the circular economy around this issue.
Dr Coffey
I have already answered the hon. Lady. I have said what I was going to say. From what she has said, I take it she agrees that perhaps having extended producer responsibility on the paint industry might be the way to go. That is not currently being considered by the EU in the circular economy package, but perhaps we will consider it when we leave the EU. The concept of extended producer responsibility is about trying to reduce waste and recovering the cost of waste. The Government have supported a pilot paint reuse project in Cheshire. We have provided more than £30,000 in match funding through the innovation in waste prevention fund.
Dr Coffey
It is a pleasure to resume the debate. I was pointing out how the Government have supported a pilot paint reuse project in Cheshire with more than £30,000 of match funding through the innovation and waste prevention fund. That project involves local charities and work with the local recycling centres and housing associations to increase paint donation and minimise disposal. The provision of clearly marked paint collection containers, the training of recycling centre staff to sort paint and advise the public, and an awareness-raising campaign led to 23.5 tonnes of paint being collected, which is more than double the original target of 11.4 tonnes. The reuse rate was also much higher than anticipated, with 78% of the donated paint—more than 18 tonnes—being reused and only 22% needing to be disposed of.
WRAP will publish a summary of the project and lessons learnt along with a video case study next year. That shows there was an opportunity for other people to use the leftover product. In that case it was housing associations, but in other cases it could be the construction trade, to which the hon. Member for York Central referred earlier.
A question was asked about Government procurement. Government buying standards do not currently include remanufactured paint, and DEFRA and other Departments do not purchase a great deal of paint directly; contractors who undertake work on the Government’s behalf tend to purchase the paint. Overall, the Government’s policy commitment is to buy sustainably, which is set out in “Greening Government Commitments”, and Government procurement officers will take account of that when buying more sustainable and efficient products and getting suppliers to understand the need to reduce the impacts of the supply chain.
Industry-led initiatives such as PaintCare are important if we are to achieve the vision of a more resource-efficient circular economy.
Dr Coffey
I will not.
We must make the best use of resources in a way that supports growth and protects the environment and human health, as has already been said. The industry’s proactive action so far should be supported by an efficient and effective regulatory framework. That is why we are working with the industry to look at regulatory barriers. As I have already indicated, the Government are undertaking some projects through WRAP or the Environment Agency to try to stimulate admittedly modest changes, but I genuinely believe that the real impetus will come from the industry, whether that is about establishing a wider network for recovering paint or helping consumers generate less waste in the first place.
This has been an important debate. The hon. Member for Penistone and Stocksbridge will be delighted to know that I have started to use the phrase “the circular economy”. I recognise what she said: it is sometimes limiting. However, I assure her and others that businesses—especially high-value businesses—are clear that recycling and recovering materials is an important part of helping the environment, and it makes sense commercially. To that end, I thank all those who participated in the debate.
Angela Smith
This has been an interesting opportunity to air the issues relating to paint. The Minister seemed to indicate—I am sure she did not mean it this way—that this is a rather boring topic. The old saying is that something is “like watching paint dry”, but most people use paint decoratively to make life better, not worse, to cheer themselves up and make their homes look brighter and nicer to live in. I therefore think that paint, and the paint and coverings industry, is an important part of our everyday lives and plays a significant part, too, in our economy. I contest the view that paint is a niche topic or that it is not really something that should engage the interests of parliamentarians.
The role of Government in our economy is increasingly clear—they have acknowledged it with the industrial strategy they have promised to develop—so I was surprised to an extent by the Minister’s remarks, which, in summary, were focused on a hands-off approach to the development of the circular economy and the work being done by the coatings industry in particular. I recognise that the Minister supports the work being done by the industry and that many of the efforts of Government have been delivered through WRAP and the environment agency. Nevertheless, the feeling was, “It is up to the industry and consumers, and the industry working with consumers, to deliver what the industry is looking for.”
Developing the remanufactured paint aspect of the industry is not just about supply and demand, pricing and markets. It is actually about confidence in the recycling process and the quality of what is produced. One of the reasons why the industry is keen to see Government take on a 5% target for procurement is that it would send a strong signal to consumers more generally, both commercial and domestic, that that paint is worth buying, worth using and serves a valuable purpose. I think that the Minister missed that point in her response.
I would also compare the Minister’s response with what we heard from Ministers in what was the Department for Business, Innovation and Skills, which we now call the Department for Business, Energy and Industrial Strategy or BEIS—I cannot get my head around that acronym—in relation to other manufacturing processes. In the steel industry, the message about procurement has been heard, and procurement rules have been changed not just for steel but for the benefit of manufacturing more generally. On top of that, real efforts have been made to enable the steel industry to develop extra capacity to meet future demand. For instance, in relation to shale gas, there are projects, I believe supported by Government, to ensure that UK steel can—if possible—take advantage of that developing industry. It is really disappointing to hear that kind of commitment on the one hand, and the lack of commitment we have heard today on the other.
The point about jobs is moot. We do not really know whether any extra jobs will be created in recycling and remanufacturing paint, because we do not know whether the overall demand in the UK would increase. The Government believe that exporting—building free, international trade—is our way out of Brexit and, even without Brexit, that would be the way to grow our economy. I actually believe that that is correct. On that basis, it is absolutely right that we should expand our economic activity. We should consider manufacturing more paint but, when doing so, we should maximise our resources. I do not accept the argument that there is not necessarily any job potential in that kind of initiative, because the more that we can produce and export, and the more that we can produce paint and coverings material sustainably, the better it is for UK plc.
On household waste recycling centres, I was particularly disappointed. When it comes to plastic, paper and glass, we no longer expect consumers or industry to take responsibility for the collection of those waste materials. That job is now with the local authorities, and local authorities up and down the country are working with the recycling industry—companies such as Viridor—to ensure that that material is collected properly, sorted and processed and then used for the purpose of making new materials.
Angela Smith
In a moment. On that basis, it is absolutely inexplicable to suggest that consumers or industry should take responsibility for waste materials. I take the point entirely, and I made it myself, that paint use should be reduced wherever possible, but there will always be a quantity of leftover paint. Different people paint in different ways, believe it or not. There will always be a market for collecting paint for recycling, and on that basis it is hard to understand why the Minister seems to think that dumping waste paint in general waste, which is actually illegal, is something for the industry to think about. I accept that it is the consumers’ responsibility, but we need to make it easier for consumers to dispose of their waste paint sustainably. I give way to the Minister.
Angela Smith
Okay. Finally, I will go back to procurement. The Minister admitted that buying sustainably is at the heart of the Government’s procurement strategy. In that sense, it is really hard to understand why the Government cannot make a simple commitment to a 5% target. It is not a particularly ambitious target; it is a fairly sensible, modest target. If the Government sent out a clear signal to all of those public sector bodies that procure and use paint—prisons, schools, hospitals and so on—that they expect 5% of paint and coatings orders to be made up of remanufactured paint, that in itself would help to send out a signal to the market that this is a serious business that is capable of growing in the future.
I have to say that I have been very disappointed indeed with the Minister’s response. I would have thought that an industry that is so important to UK plc—I gave the statistics earlier—is not being given more support by the Government. We have illustrated in the debate that it is doing everything it can itself to ensure that it becomes more sustainable, that it reduces waste and that it absolutely makes the most of the resources that are wasted at the end of the day. The Government are doing very little to support that industry, and in the context of Brexit, that is very disappointing indeed.
Question put and agreed to.
Resolved,
That this House has considered the circular economy for leftover paint.