Single Use Carrier Bags Charges (England) Order 2015

Earl of Lindsay Excerpts

Wednesday 4th March 2015 Grand Committee

I could go on analysing all the elements here, but it is clear that the Government should have taken this action a very long time ago. Now they have gone part of the way along the road with much ado. Any sensible Government would have looked not at a laboratory experiment, but at the actual result in Wales of how the public have responded to the initiative taken there. However, the Government have chosen to ignore that and to carry out their own research, which was both unnecessary and otiose. They should not be applauded for this belated initiative.

[The Earl of Lindsay (Con)]

In speaking, I declare an interest as a non-executive director of BPI, which is one of Europe’s largest manufacturers and recyclers of polythene film. However, I stress that BPI has no interest in single-use carrier bags. I welcome this order and its overriding purpose is admirable. However, it is of concern that some of the details of the order go against the unanimous advice of the Environmental Audit Committee, the advice of the British Retail Consortium and a number of other retailers outside the BRC, and the advice of a number of industry organisations. I should stress that it is the detail of the order, rather than its overriding purpose, which has caused a number of organisations and the Environmental Audit Committee some concerns.

In addition, I believe that the detail of the order is, in parts, at odds with the Environment Agency’s own life cycle analysis. Therefore, it is regrettable that, while there may have been—as the noble Lord, Lord Anderson suggested—a delay in bringing forward the proposal, the order itself has been rushed as regards the opportunity to discuss with other parties what the detail of the order should contain.

The EAC held exhaustive investigations into the proposals, and concluded by flagging a number of concerns to Defra in its report, including the fact that the exemptions proposed in its charging scheme for small retailers, and paper and biodegradable bags, would make the scheme too complex. More specifically, the Environmental Audit Committee ruled that an exemption for biodegradable carrier bags was not viable because of the damage such an exemption would cause to the UK plastic films recycling industry. I will focus on the exemption relating to biodegradable bags, because of its unintended consequences.

The summary of the EAC’s report states:

“The options for disposal and recycling of bags are complex, with significant risks around contamination, and must be coherent with the Government’s wider approach to reducing and managing waste. The proposed exemption for biodegradable bags risks damaging the UK plastics recycling industry, could undermine the reduction in bag use, and is not necessary. It should not proceed”.

The Packaging and Films Association agrees, pointing out that if biodegradable or oxodegradable plastic carrier bags are used, they will result in an adverse impact on the recycling process of plastic, rendering recycled plastic totally unusable for certain applications and severely reducing its performance for others.

It is not just the PAFA. Studies by universities have proved that with inclusion rates in recyclate of biodegradable and/or oxodegradable materials at very low levels—between 2% and 5%—the quality of the recyclate is severely impaired. There are also concerns, incidentally but not unimportantly, that such an exemption would send a confusing message to consumers, whom the industry wishes to encourage to reuse and recycle products at the end of their life.

The industry is wholly committed to the reuse of its products, and many in the industry have no problem with the proposed levy and support this order. However, they are widely concerned about the scale of the impact that an exemption for biodegradable and/or oxodegradable products would have on the UK’s existing plastics recycling industry. Those concerns have been recognised in Europe, where oxodegradable technology has now been recognised by almost every major European retailer and every other major western EU member state as not being a suitable alternative to biodegradable materials.

The UK polythene film recycling industry, which supports thousands of UK manufacturing jobs and is an excellent example of advancing the circular economy, has no financial or business interest in the manufacture or sale of single-use carrier bags and thus has no competitive interests in those products. The oxodegradable manufacturers’ association, which I understand is promoting such an exemption, supports just 32 jobs in the United Kingdom.

It is inevitable that if an exemption for biodegradable or oxodegradable single-use carrier bags is included in any regulation at a future date, as anticipated by this order, it will result in an increase in these products becoming included in the UK plastics recycling waste stream. My noble friend pointed out that more sophisticated methods are needed for separating biodegradable from non-biodegradable materials—he is right. Not only are more sophisticated methods of separation needed, but we have to be economically realistic. This difficulty is likely to play into the hands of exporters, whose recyclers can hand-sort, and would undermine the UK recycling business, which has been driven towards automation and cannot afford to add labour to hand-sort.

To allow those products to enter the UK plastic films waste stream would have other regrettable consequences as regards the existing reuse of plastic and plastic films. I will give noble Lords just one example. One of the major uses for recycled plastic pellets is the manufacture of building films and membranes used in the construction of all new housebuilding. From June 2015, all materials supplied to the UK housing and construction markets will be required to include a lifetime guarantee. To give such a guarantee will not be possible if the raw material used in the manufacture of these products could include bio or oxodegradable content, which could cause product failure within the lifetime guarantee. This will result in the manufacture of these products reverting from using recycled sources to using prime or virgin raw materials, and thus reduce the available market for UK-manufactured recycled plastic pellet. It has been suggested that this is a small price to pay for the inclusion of a biodegradable exemption. However, with so many UK manufacturing jobs at stake, such a suggestion is viewed as being incomprehensible. I could cite plenty of other examples of similar unintended consequences.

I must restate that the UK plastic films recycling industry does not have any interest in the manufacture or sale of single-use supermarket carrier bags and supports the Government’s purpose in introducing a charge on single-use bags. However, the proposed exemption for bio or oxodegradable bags will have a detrimental impact on the UK plastic films recycling industry and will lead to immediate problems and unintended consequences. Also inherent in such an exemption are real difficulties in terms of policing and the opportunities for fraud. I do not know whether Defra has considered this inevitable dimension and the resourcing of this oversight. Can the system be properly administered? I am not sure.

The chairman of the British Plastics Federation’s recycling group said recently:

“Over the last three years, the UK has seen the emergence of significant infrastructure to support plastics recycling. This is at a critical stage where it is necessary for these investments to demonstrate profitable growth and to meet the needs of higher overall recycling targets. This policy exemption could undermine these businesses due to the potential for contamination”.

The director-general of the British Plastics Federation, speaking on behalf of the wider industry group, Plastics 2020, said:

“All this will spell a loss of jobs in what has been a potentially thriving plastics recycling sector and put paid to further progress in meeting Government’s ambitious recycling targets”.

Let me finish with a quote from the British Retail Consortium. It stated:

“Biodegradable bags can be really confusing for the consumer and very challenging for the retailer to be able to communicate how to dispose with these bags correctly. Biodegradable bags cannot currently be recycled along with single use carrier bags—a challenge for those supermarkets providing front of store carrier bag recycling points. There are serious doubts about the environmental benefits of oxo biodegradable plastics. They cannot be composted, they add nothing to incineration, there is mixed opinion about their fate in landfill, and reprocessors do not want this material because their customers have doubts about the effect on the longevity of constructional plastics”.

I strongly urge the Minister to think carefully about how the review that the order requires to be carried out by 5 October 2015 is carried out. The requirements of that review, which are set out in the order, should include a cost-benefit analysis of the effect of implementing an exemption for bio or oxodegradable plastics.

[The Lord Bishop of Chester]

I am sure that one would not want a bishop to put himself forward as a paragon of virtue, but I have in my hand a bag that I have used for the last 20 years, which my Danish mother-in-law bought in Copenhagen. It is a shopping bag, and I walk around your Lordships’ House with it. There it is. I have two of them, which I treat as one might treat one’s pet cat or dog.

I welcome the order and hope that cathedral shops, which do not employ anything like 250 people, and other such places involved in the life of the church, will join the spirit of the change, make the charge and not just pocket the benefits for their own charitable purposes.

I have a couple of questions for the Minister. Will the exemptions in this order parallel exemptions that apply in Northern Ireland, Wales and Scotland? If not, why are some greater than others? It would be helpful to have that information and the logic of that. Also, the figure of 250 seems quite high. How easily would the Government be open to a reduction in that figure? Indeed, what is the equivalent figure in the other parts of the United Kingdom? Are other materials used in packaging single-use? Lots of vegetables are presented in plastic packaging that is essentially single-use. As I look around the roadsides at this time of year, when you especially see all the plastic debris before spring comes, the litter is by no means only single-use plastic bags from supermarkets.

My final question relates to the remarks of the noble Earl, Lord Lindsay. If a plastic bag biodegrades, what does it biodegrade into? I had a misspent youth as a chemist and my guess is that the bag biodegrades into carbon dioxide, inasmuch as there is carbon in the plastic. Other people here will probably have greater scientific skills than me, but that is what happens. When plastic biodegrades, the carbon in the plastic becomes carbon dioxide—as I understand it and unless I can be corrected. Why make this order under the Climate Change Act and provide an exemption for biodegradable bags when they biodegrade into carbon dioxide? That is, if I have got my primitive chemistry correct, some decades on from when I last practised. I want to welcome this but some broader questions should be asked around the order.