Packaging Manufacturers: Extended Producer Responsibility
Debate between Gareth Snell and Mary Creagh(4 weeks, 2 days ago)
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Mary Creagh
I cannot speak for what happened under the previous Administration, but I can tell my hon. Friend that the scheme was announced in 2018, and a consultation happened in 2019. There was another consultation, but I cannot find the exact part of my pack on that. There was a full impact assessment of PEPR published in October 2020, setting out the expected overall costs to businesses. At that stage, it was not possible to assess the impact on specific sectors or regions, as fees and modulation had not been finalised. This has been a huge infrastructure project change, and a huge system change. The Environment Agency, acting as the regulator, holds the database of everyone who is a packaging producer. Elsewhere in the waste and packaging sector, we see large issues around avoidance, free riding and other issues, so we had to go through a massive piece of work with our regulator to ensure that everyone who is putting packaging on is meeting their obligations.
There were public consultations in 2019 and 202,1 and a consultation on draft regulations in 2023. There was a consultation with British Glass on the decision to use volume in the apportionment of kerbside recycling collection costs in July 2024, prior to the release of the initial set of illustrative base fees. I think that there was perhaps a misunderstanding, given that this had all been thought about and discussed for five or six years, that it was never going to happen. To be fair to the smaller companies, perhaps they were unaware of their obligations, or perhaps they were not obligated at that time, but have since grown and been brought over the de minimis threshold.
Let me talk a little bit more about what the Government are doing more widely to support glass businesses with their electricity costs.
Gareth Snell
I genuinely thank the Minister for being generous with her time. On the idea of a post-implementation review, is there a way of looking at the time that businesses have to spend interacting with the scheme? The Titanic brewery in Stoke-on-Trent—very good beer, by the way—has told me that it took three weeks of one employee’s time to complete the assessment for the first year’s fees. I am sure that that is not by design, but in the review, will the Department look at how to make interaction with the scheme easier for small businesses that do not have much capacity?
Mary Creagh
My hon. Friend makes an excellent point, and this is something that I have been insistent with officials on. This is a complex scheme, and the more complexity we add into it, the more time it will take. There is a trade-off here, and a set of difficulties, because we can do carve-outs for x and y sector, but that creates more complexity in the recycling assessment methodology calculations for other parts of the packaging industry. We have to beware of making perfection the enemy of the good. I can also let my hon. Friend know that the chief executive officer of PackUK, Jeremy Blake, met the WoolCool CEO yesterday. I thought that had happened, but I am glad to have got the note telling me it is true.
Beyond this, we are supporting the glass businesses with their electricity costs through the British industry supercharger. Glass businesses now receive 90% compensation for electricity network charges. This brings their total reduction in electricity bills to an average of between £65 and £87 per megawatt-hour. We are also supporting the retail, hospitality and leisure sectors with lower tax rates for their properties. On the issue around cheaper imports coming from overseas, the Trade Remedies Authority’s independent anti-dumping and anti-subsidy investigations into cheaper glass imports from China and Turkey are ongoing. That is dealt with by another Government Department.
We are working closely with industry to address the challenge of dual use—packaging disposed of in either business or household waste streams. We know how important this issue is to stakeholders across different sectors, including pubs, hospitality and medical packaging businesses, and construction. Indeed, I met a representative of the paint industry at a B&Q in my Coventry East constituency. Paint will always come in a tin or plastic container with a coating inside it, so it will never attract “green” fees, but we want to get that paint recycled, reused or repurposed. B&Q is doing some excellent work with the charity Neighbourly to ensure that paint has a second life. People do not know what to do with unused paint. Builders finish using a pot, then down into the drain the rest goes, adding to the diffuse water pollution that we are experiencing across our sewer network.
This is a tricky issue, but we need a system that can be effectively monitored and enforced. It is no good just saying, “Oh, everyone decides that all their stuff goes to the pubs” and then suddenly we are left with a massive shortfall in the fees, so it has to be verifiable. We are testing solutions, including for hospitality, and building on international best practice, looking in particular at the Austrian model. I held a roundtable with industry last year to look at solutions for the dual-use challenge. It is difficult, but I hope for a solution on this issue soon that does not add undue complexity to the scheme or make it impossible for the regulator to verify.
Gareth Snell
I am sorry to detain the House. I am not sure if a try has been scored yet, but I am sure somebody will find out—
Gareth Snell
The Minister mentioned the super-charger scheme and the impact for glass manufacturers. I know the super-charger scheme is not her Department, but it is only for frontier industries. Can she say whether or not glass bottle manufacturers that go into the hospitality sector benefit from that? My understanding was that they do not because they are not considered one of the glass fibres or the industrial glass needed for the frontier industries.
Mary Creagh
I am looking to my officials in the Box, and I think it is probably safest if I write to my hon. Friend on that issue.
Let me tell the House about the year 1 shortfall in fees. There was a shortfall in the fees this year as we allowed packaging producers to submit their tonnages and then their tonnages reduced because, obviously, they looked at their figures and reduced them. We listened to industry on that. Despite the regulations saying that actually industry should make up any shortfall, my Department took pressure off businesses by funding on an exceptional basis to hold fees down. We are taking steps this year to ensure that we do not have a repeat of that.
On early successes, we are hearing about PEPR bringing about change. Councils all over the UK are using this funding from the packaging industry to improve services to local people. In Tameside, the metropolitan council is investing £1.6 million in new vehicles and improved technology to deliver a more reliable service for taxpayers. Councils are investing to improve glass collection directly, which should benefit the industry in terms of the supply of high-quality cullet. For example, Aberdeenshire council is investing £5 million over 2 years to purchase a new three-compartment glass collection vehicle—I hope that is “vehicles”, but it says “vehicle” here—upgrading glass recycling points to reduce contamination, and improving the quality of glass recyclate, which we know really matters to the glass industry.
Environmental Protection
Debate between Gareth Snell and Mary Creagh(1 year, 6 months ago)
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Mary Creagh
There has been talk of that, and I met with the glass industry recently, but so far we have seen no evidence of manufacturers switching. Manufacturers must be part of the deposit management organisation, so they will pay under either EPR—extended producer responsibility for packaging—or DRS. Glass has been excluded from scope on the basis of extensive consultation.
The DMO will be appointed in April 2025. It will be obligated to: meet collection targets; pay return point operators for collecting containers; recycle the collected containers; and pay national enforcement authorities. The instrument provides powers for the deposit management organisation to set deposit levels, prescribe labelling, interact with other schemes, set producer fees, calculate handling fees for return points and exempt some retailers from hosting a return point.
Under the “polluter pays” principle, it is the responsibility of businesses to bear the costs of managing the packaging they place on the market. Through specific return point exemptions based on store size, proximity to another return point and suitable premises grounds, this instrument will also protect small businesses across England and Northern Ireland, which we recognise are vital to our high streets and communities.
Further information has come to light since the question asked by the hon. Member for Strangford. I am in contact with Minister Muir as we progress, but Northern Ireland has given DEFRA responsibility for delivering the scheme, so this statutory instrument has Northern Ireland’s consent. I hope that answers his question.
Finally, the instrument makes provision for monitoring and enforcement activities by the Environment Agency and by local authority trading standards officers to ensure obligated businesses and the deposit management organisation are compliant. This deposit return scheme will improve recycling rates and provide better quality material for recycling. [Interruption.] Was I asked to give way? I do give way.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
I am sorry; I was being quiet and shy, which I am well known for in this place. The Minister rightly points out that some of the responsibility will now fall to trading standards and local authorities. Can she give an undertaking to the House that, with that new responsibility, there may be some element of new burden funding so that local authorities are properly resourced to undertake the enforcement of this vital protection?
Mary Creagh
Local authorities have been given new burdens funding to prepare for the simpler recycling reforms, but I will take my hon. Friend’s question back and endeavour to get an answer to him, hopefully by the end of this debate. Who knows, it could come sooner.
The DRS will improve recycling rates, and by giving people money back on their bottles we transform their plastic and metal drinks containers from a waste stream to a resource stream. That will make a positive difference to every single street where we live. Nobody wants to see plastic and cans littering our beaches, rivers and seas, our roads and our parks. With this scheme, we will have less litter, less landfill and less harm to our precious wildlife, which is under such pressure, and we really will begin to turn back the plastic tide.
Oral Answers to Questions
Debate between Gareth Snell and Mary Creagh(1 year, 7 months ago)
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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mary Creagh)
Incineration permit breaches are a matter for the regulator, the Environment Agency, but we are reviewing energy-from-waste capacity across the country and will be making a statement imminently.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
Merry Christmas, Mr Speaker, and happy Hanukkah to those who are observing.
What action are this Government taking to promote the purchasing of British-grown and seasonal produce through their public procurement framework?