Circular Economy: Leftover Paint

Kerry McCarthy Excerpts

Tuesday 15th November 2016 Westminster Hall

[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.