Producer Responsibility Obligations (Packaging Waste) (Amendment) Regulations 2012

Lord Knight of Weymouth Excerpts

Tuesday 20th November 2012 Grand Committee

My second question is in line with what my noble friend Lord Jenkin put to the Minister. If it is not possible to review and revise what is before us, can we now have a commitment from the Minister on behalf of the Government that there will be an interim review of the details set out in these regulations, specifically of the timescales attached to the targets set. If it is at all possible, could we seek to entrench that commitment in the legislation so that in, say, two years’ time there is certainty that the timescales will be reviewed and that that review process will lead to a revision if a proper case is made for it?

[Lord Knight of Weymouth]

My Lords, given the debate so far, the Minister might be pleased to know that we support these regulations which build on the 2007 regulations brought in by the last Government. Obviously we are mindful of the impact assessment on the estimate that £400 million-worth of overall benefits have derived from them, so it is good that there are occasions when this Government believe that statutory targets and regulation can bring an economic benefit. That is not always the message we hear. However, I note the comments that have been made by the noble Lord, Lord Jenkin, and the noble Earl, Lord Lindsay. Given the first question put by the noble Earl, I am also concerned about the timing of the regulations. Should the Minister listen to our debate and decide that, unlikely as it may seem, it might be best to withdraw the regulations and think again, there would not be time to bring forward new regulations before those currently in force will run out at the end of the year. We would then be in a very awkward position.

In effect, there is a fait accompli in respect of these regulations. I do not think that that is desirable and it is not good, transparent law-making. Indeed, the sorry tale of lack of engagement with the industry related by the noble Lord also suggests that there are some in Defra who perhaps need to smell the coffee in terms of how good law-making is conducted. The days of “Whitehall knows best” are over so far as the public are concerned, and we need to ensure that there is proper engagement—even with those who you know are going to oppose the laws we are making—so as to ensure that the best possible compromise between the competing interests is arrived at. I think that the estimate in the impact analysis was that there would be losses of just over £22 million to business as a result of these regulations. There are going to be losers as well as those who will benefit from the jobs and economic activity that attaches to recycling. I want to make those points of sympathy, even though we are on different sides of the argument in respect of these regulations, for the comments of the noble Lord, Lord Jenkin, and the noble Earl, Lord Lindsay.

The only questions I have for the Minister are to try better to understand what criteria he used in setting these new levels. We have heard figures like three percentage points a year for aluminium, five for plastics, one for steel, while glass is being held on the assumption that the target will be split by end use. There are other targets for paper, wood and so on. The department must have carried out a sensitivity analysis of what is the right level of increase that is sustainable for the packaging industry and in terms of capacity in the recycling industry. Even if he cannot give us a detailed assessment now, it would be interesting if he could either point to where the analysis is in the Explanatory Notes—if it is there, I have lost it—or if he would drop us a note to let us know. I am sure that that transparency will be useful as the ongoing discussions take place.

My second question is asked in part on behalf of my noble friend Lord Haskel, who was hoping to speak in the debate, but while he has been able to move in and out of it, unfortunately he missed the opening speeches and so feels unable to contribute. He, too, is critical of these regulations. One question that he was going to ask—it is in his speaking note, which I have seen—concerns the adequacy of local collection services, and what analysis the department has made of the capacity of the services to deliver on these regulations. Clearly, if the recycling cannot be collected, the system will not work very well. Any answer on that for my noble friend and for me would be gratefully received.

Finally, I am interested in the Minister’s views on what will happen after 2017 when the regulations run out. I am sure that if he is sympathetic to the notion of a mid-term review, which he has been asked about, we would be interested to hear that, too. Does he think that continuing with targets is the right way forward post 2017, or is this a measure to extend the existing approach while he thinks about a new one? What is his view on whether the infrastructure is broadly right, and whether it will remain stable and go beyond 2017? Any indication on that would be well received by the interested parties who will be listening carefully to his comments as the responsible Minister. I know that often he has to respond for other Ministers in the department, but in this case we are hearing the words direct from the Minister’s mouth, and anything he can give us to elucidate these matters will be warmly received. As I said, I am broadly supportive of the regulations.

[Lord Jenkin of Roding]

Perhaps I may remind the noble Lord that the policy produced by the industry—the Plastics 2020 Challenge—continues to 2020. The industry would ensure by then that nothing will go to landfill.

[Lord Knight of Weymouth]

In making that comment, the noble Lord reinforces his point that engagement with the industry is a wise course, alongside engagement with the recycling industry, which stands to gain more business and more employment as a result of these regulations.

[Lord De Mauley]

My Lords, I start by thanking noble Lords for taking the time to get into this very complicated subject and to debate these important issues today. I listened very carefully to the points made, including to very specific concerns about aspects of the regulations, and will try to answer as many of them as I can. Before I respond to the points about targets, I will address concerns raised about the process of developing the regulations.

First, I assure the Committee that all responses received to the consultation were given due consideration, and that information presented was taken into account when building the evidence. I can only apologise sincerely to my noble friend Lord Jenkin for the time it took him to get a meeting. I will add that I hear clearly the message of my noble friend Lord Lindsay. As part of the consultation process, my department considered carefully the advice of the Advisory Committee on Packaging. This is an important body that represents most of the packaging chain.

My noble friend Lord Jenkin suggested that the Explanatory Memorandum accompanying the regulation did not provide an accurate summary of the consultation responses received, and that opposition to the plastics targets was not properly represented. The memorandum states that overall, taken as a whole, respondents to the consultation were supportive of increasing the targets. However, it acknowledged that there was some concern about the level of increase for certain materials, notably plastics. I ask my noble friend to accept that this reflected the fact that the plastics producers who opposed the preferred option on the grounds that it was unachievable represented between 10% and 15% of the total obligated tonnage for plastics. The majority of respondents who expressed a preference supported the higher targets; only a minority expressly opposed them.

--- Later in debate ---

[Lord De Mauley]

My Lords, the calculations I have been given indicate what I have just stated. Furthermore, I understand that there were opposing views even among the members of those associations who responded to the consultation. I do not argue with the fact that there has been opposition and that it is important to consider it. Indeed, I have and am considering it.

[Lord Knight of Weymouth]

I have a question about the Advisory Committee on Packaging. It used to be an arm’s-length body, but after the review it was taken into Defra. I think that this Committee would find it valuable to know what opposition was expressed within that committee. Is the Minister willing to publish the minutes of the advisory committee’s meetings to see how the debate was represented?

[Lord De Mauley]

If I may, I shall come to the advisory committee later in the debate.

My noble friend Lord Jenkin referred to his concerns about the achievability of the targets. I shall go into some detail on that because I think it will be helpful to noble Lords. The 42% recycling rate was consulted on and, as I said, the majority of the consultation responses supported the proposal. I acknowledge that the target is challenging and we will monitor progress closely, calling on the expertise of the Advisory Committee on Packaging. In responding to the consultation, waste companies, reprocessors and local authorities felt that the infrastructure was sufficient to deal with demand and that further infrastructure would come on stream by 2017 to cope with increased supply and demand—I think that that is the question to which the noble Lord, Lord Knight, referred. The quality of recyclates is also something that the Government take seriously. My officials are working on an action plan, to which my noble friend referred, to address the quality of recyclates, and it will be published shortly.

I turn now to the targets themselves. As I say, it might be helpful to noble Lords if I go into a little detail on these. Defra has conducted a full analysis of how the targets can be achieved. As with any projections, assumptions have been made. That is why we exposed our analysis to scrutiny through public consultation and we asked industry if we had got it right. Most of the organisations that will be required to collect, sort and reprocess the additional material thought that the higher targets would be achievable. However, as we heard today, some in the plastics manufacturing industry remain concerned about the achievability of the plastics targets. Officials have met representatives of the industry and, as my noble friend said, I myself have met them. I have carefully reviewed the concerns raised and the evidence provided.

I will take the different targets in turn, starting with plastic bottles. The lion’s share of hitting this target will fall to bottle recycling. Good progress has been made, with the UK now recycling just over half of the bottles that are thrown away. However, around 240,000 tonnes of household plastic bottles that are disposed of in households with access to plastic bottle recycling collection points still end up in landfill. This makes no sense. The material has a value of at least £18 million. We must get it out of landfill and into recycling. This can be done relatively cheaply because the infrastructure is already in place. Nearly every local authority in the country is collecting bottles, while the sorting and reprocessing infrastructure is well established and the end markets are thriving. The key to capturing thousands more tonnes of plastic bottles is communication. I want to see industry and local authorities working together to communicate to the householder. For example, the plastics industry could follow the model adopted by the metal packaging and reprocessing industry under its “Metal Matters” campaign, which has increased householder participation in recycling schemes by up to 40%.

The other source of plastic packaging we expect to make a major contribution to achieving the targets is from the commercial and industrial sector. Our estimates suggest that a significant tonnage is currently being recycled but is not being counted by the PRN system. Indeed, in 2005 almost 350,000 tonnes of commercial and industrial plastic packaging was collected for recycling compared with apparently less than 280,000 tonnes in 2010. We believe that the disappearance of 70,000 tonnes was largely because there was no need for the material to be counted towards meeting the recycling targets, but that it actually continues to be recycled outside the PRN system.