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

Lord De Mauley Excerpts

Tuesday 20th November 2012 Grand Committee

Moved By

[Lord De Mauley]

That the Grand Committee do report to the House that it has considered the Producer Responsibility Obligations (Packaging Waste) (Amendment) Regulations 2012.

Relevant document: 9th Report from the Joint Committee on Statutory Instruments

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley)]

My Lords, these regulations seek to set new recovery and recycling targets for packaging waste for 2013 to 2017.

Packaging performs an important role. Last year 11 million tonnes of packaging were used in the United Kingdom to get products from where they were produced to where they were consumed with minimal damage and wastage. However, once packaging has fulfilled its purpose, the question becomes: what should be done with it? Reusing packaging would be ideal but as this is not possible in many cases, recycling is usually the best option for recovering the value—in both economic and environmental terms.

The Government want the UK to move towards a zero-waste economy. Rather than an economy where no waste at all is produced, we envisage one where resources are fully valued. We want to see material resources reused, recycled or recovered wherever possible, and only disposed of as a last resort. The targets before the Committee today will play an important part in achieving this vision. They will help the UK go further in recovering the value of discarded packaging materials and help tackle the wasteful practice of burying them in landfill.

Furthermore, like other EU countries, the UK is required by the EU directive on packaging and packaging waste to recover each year a minimum 60% of all packaging waste, of which 55% must be recycled. Within this overall target, there are also recycling targets for individual packaging material types, including metal, paper, glass, plastic and wood. The UK achieves these targets through the producer responsibility system we have put in place, established by the Producer Responsibility Obligations (Packaging Waste) Regulations 2007.

The existing regulations set recycling targets for packaging producers until the end of 2012. We now need to put measures in place to ensure that the UK continues to meet the EU packaging recycling targets in future years, and to ensure packaging waste continues to be recycled. If we do not, this will result in the removal of important financial support for the recycling system in this country, and we can expect current recycling rates to drop. Furthermore, we can expect costly infraction proceedings for failing to implement the EU directive. However, there is a more important reason for these targets. As valuable resources for our industries get scarcer and more expensive, we need processes in place to recycle properly and recover them to maintain as much of their value as we can in the economy. The proposed targets for the period 2013-17 will maintain the current levels of recycling of paper, wood and glass. They will also set a trajectory for increased recycling of aluminium, which we want to see increase by 3 percentage points per year; plastic, by 5 percentage points per year; and steel, by 1 percentage point per year.

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[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.

[Lord Jenkin of Roding]

Does the Minister think that the two trade associations whose representatives he met, the British Plastics Federation and the Packaging and Films Association, represent only a small part of the industry? That is not the impression they gave me.

[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.

[Lord Jenkin of Roding]

Does the Minister not recognise that with that additional amount put in, it will simply be a question of counting it? It will not get any more, because it is very nearly complete. A vast quantity of the commercial and industrial plastic weight is already being dealt with. Therefore, how can there possibly be a substantial amount still to go to meet the targets? I am sorry; the argument simply does not stand up.

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[Lord De Mauley]

All I am suggesting is that, as a contributor to the target, there is 70,000 tonnes or thereabouts available which is not currently being counted.

[Lord Jenkin of Roding]

It is happening.

[Lord De Mauley]

It is happening, but it is not counted in the current targets: that is the point. Of course, we will need to look at other plastics streams.

[Lord Jenkin of Roding]

It is a mockery.

[Lord De Mauley]

This includes recycling more plastic pots, tubs and trays and more plastic films. We recognise that increasing the collection and recycling of these types of plastic represents a challenge, but we are seeing some encouraging trends. For example, in the past four years more than 100 local authorities have introduced collections for pots, tubs and trays. This has seen the recycling rate for these items more than treble over the past five years from 5% in 2008 to 18% now. To meet the proposed plastic recycling target we are looking for the recycling rate to increase from the current 18% to 28% over the next five years. There is also a range of planned waste policies that will encourage local authorities to collect a wider range of plastics for recycling. In particular, WRAP is investing £5 million, through its mixed plastics loan fund, by which it means to deliver, by 2015, a further 100,000 tonnes of recycled pots, tubs and trays—double the 50,000 tonnes we anticipate will be needed from this stream to meet the overall target.

Of course, the higher packaging recycling target being debated today will help provide extra stimulus for local authorities to roll out collections and for MRF operators to invest in new sorting technology to handle a wider range of plastics. Other waste policies will encourage greater collection of plastics. These include the landfill tax, which is set on an increasing scale, making disposal of these items less economically attractive, and the revised waste framework directive, with its focus on separate collection of plastics and other dry recyclates by 2015.

We recognise that there are concerns about infrastructure capacity. However, I understand that most new sorting facilities, or MRFs, are being designed to handle mixed plastics or will have suitable capacity to add additional materials at a later date to support changes to local authority collection services. Furthermore, the Environmental Services Association, the main trade body for waste management companies, has stated that there are plans for an additional 6.6 million tonnes of MRF capacity to come on stream between 2013 and 2017. On that basis, the 50,000 tonnes of additional plastic anticipated should be manageable.

My noble friend Lord Jenkin referred to glass and asked about meetings. There was recently a meeting with British Glass to discuss the targets for 2012. I am not aware of wider requests for meetings from the glass sector. It is important to recognise that the glass targets before your Lordships today are flat and only slightly above the minimum 60% necessary to achieve the target set in the EU directive.

I listened carefully to concerns about the costs of the new regulations on certain business sectors. I ask noble Lords to accept that this needs to be seen in the context of the overwhelming benefit to the economy as a whole, including the UK’s recycling and reprocessing industry. Most businesses on which the obligation to meet the proposed targets will fall are in favour of them. In setting them, we sought to balance the costs to businesses, and we did not increase them unless there was a sound business case for doing so.

My noble friend Lord Jenkin asked about exports. I am fully supportive of the need for a level playing field. As part of the ongoing review of the packaging regulations, we are exploring the issue and considering options for how it may be addressed. I believe that there is significant scope for growth in domestic demand for recovered plastic. Security of feedstock has been cited as discouraging some reprocessors from entering the market. We believe that the proposed targets will provide greater confidence in supply, plus the financial support to enable investment in increasing domestic reprocessing capacity.

My noble friend Lord Jenkin referred to the Advisory Committee on Packaging suggesting lower plastic targets in its report of work carried out in 2010-11. The ACP’s response to the consultations actually supported the Government’s preferred option of higher plastic packaging recycling targets. Its report of work in 2011-12, published earlier this year, confirmed its advice that the higher plastic packaging targets suggested by the Government would be achievable provided that there was an increase in the provision of collection infrastructure and that participation rates increased. Furthermore, more new infrastructure is, as I have said, coming on stream to cope with supply and demand.

My noble friends Lord Jenkin and Lord Lindsay asked for a mid-term formal review. I think that I can go further than that. I assure the Committee that my department will monitor progress throughout the period in question and will take appropriate action if needed. The ACP has a standing agenda item at its quarterly meeting to review packaging recycling achievement data and to advise Defra on trends and impacts on achievability going forward. I will keep a close eye on that. I am also happy, as my noble friend requested, for discussions to continue between those he represents and my officials.

My noble friend Lord Lindsay suggested—perhaps I am paraphrasing him unfairly—that Defra used its own evidence. Defra used a range of evidence sources, including WRAP research on collection costs, industry data on waste from groups such as PackFlow and the ACP, as well as evidence submitted as part of the consultation.

[The Earl of Lindsay]

My Lords, I will clarify what I said because the paraphrase did not quite catch the point that I was trying to make, which was that the evidence that the department used to underpin the regulations currently before us was not seen by key players in the industry until such a late stage of the process that, while they had reservations and doubts about some of it, there was no time to properly discuss it with the department before it became a fait accompli.

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[Lord De Mauley]

I accept that, my Lords. I apologise to my noble friend. I hope that I have covered the point quite extensively in the debate.

The noble Lord, Lord Knight, asked what would happen beyond 2017. That is some way in the future. I am clearly not in a position to answer it now. It is one of the things that will be taken into account as we move forward. I referred to the review process that will be going on. I hope that that helps him.

The noble Lord asked for the publication of the ACP minutes. I would need to talk to the committee. Perhaps I cannot go quite so far as to commit to doing so in this Committee, but I will certainly look into the possibility. He also asked about the criteria used to set the different targets for different materials. There was a comprehensive cost-benefit analysis. If it would be helpful to noble Lords who have participated in the debate, I am happy to send them documentation to support that.

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[Lord De Mauley]

My Lords, I am responsible.

Motion agreed.