Packaging manufacturers and retailers need to fund the cost of recycling more, according to The Recycling Association.
The response follows the National Audit Office report, The Packaging Recycling Obligations, which found Government has no evidence that the system has encouraged companies to minimise packaging or make it easy to recycle.
The Recycling Association says it believes that increasing the funding for recycling by producers could lead to more and better quality recycling.
Simon Ellin said: “This report from the National Audit Office highlights the need for those who produce packaging to do more to fund its recycling.
“At the moment, approximately 10% of the cost of recycling is funded by retailers and manufacturers via the PRN system. But we would like to see this increase to at least 80% and probably 90%.
“Defra plans to introduce a new Resources & Waste Strategy later this year and we hope that the cost of recycling will be included in this through more Extended Producer Responsibility.”
“That would give the retailers and manufacturers a proper incentive to create packaging that is easy to recycle while also providing greater investment for UK recycling infrastructure. It would also lead to better quality of recycled material so that it can more easily be remanufactured into a new product.
“Defra plans to introduce a new Resources & Waste Strategy later this year and we hope that the cost of recycling will be included in this through more Extended Producer Responsibility.”
The report also highlighted how the Government has no way of knowing whether exported material is recycled.
Simon Ellin added: “Almost all of the material that our members export is recycled. There is an international market for materials, often returning it to the place of manufacture to be turned into a new product. This paper, plastic and metal is paid for by buyers as a raw material to be recycled, more often-than-not, in state-of-the-art recycling facilities.
“But the report is right to highlight those rogue operators who ship material that cannot be recycled in the hope of making a quick buck. The report highlights the need for more regulations to crack down on those who export illegal material, as well as the need for improved funding for the environment agencies in the UK to ensure they are better able to catch these criminals.
“We export material as part of a global market, and it is vital that we send a high-quality commodity to these countries. Improved regulation will allow us to do this.”
Sector Reaction
The Environmental Services Association (ESA) welcomed the NAO’s “important contribution” to improving the PRN system and it urged Defra to carefully consider its recommendations.
“ESA has been tireless in its efforts to tackle waste crime and we have long called for PRN reform,” it said.
“We wholeheartedly agree with the need for more audits and enforcement of any new system, with robust checks that reported data is accurate. However, it is worth stressing that the vast majority of packaging collected for recycling is recycled and that this is no time to lose faith in recycling but to step up our efforts to do better, right from the packaging design stage to minimising contamination at the household and demanding recycled content in new packaging.
“We should absolutely seek to recycle more of our waste here in the UK but lack of domestic capacity means the export market will continue to be important for the foreseeable future, not least for paper and board where quality requirements for material going to China are very strict.
Carole Taylor, Chair LARAC – “The NAO report is yet more proof that the UK producer responsibility regime is woefully inadequate in funding the collection, treatment and reprocessing of packaging.”
The Local Authority Recycling Advisory Committee (LARAC) also welcomed the report into packaging recycling, stating it shows that the current system is in need of “urgent reform” as part of the forthcoming Resource and Waste Strategy.
LARAC highlights the low cost of compliance for UK companies compared to those in other countries as ongoing proof that the public sector is shouldering the burden and it is time for producer responsibility in the UK to fully fund collection and recycling services.
LARAC has long called for a change to the producer responsibility regime in the UK and it was one of the key recommendations in the LARAC policy paper “The Future of Local Authority Funding” published in April this year. LARAC has been working with Defra to provide a local authority viewpoint of the issues connected with fundamental reform so that future funding of local authority services from producers is transparent and full.
Carole Taylor, Chair LARAC, said: “The NAO report is yet more proof that the UK producer responsibility regime is woefully inadequate in funding the collection, treatment and reprocessing of packaging. It is time for the UK to fall in line with other countries and pump funds from producers into local authority collection services. We are looking for that type of reform and change in the forthcoming Resource and Waste Strategy from Defra”.
The report backs up the findings of a LARAC member survey that showed little PRN funding flowing through to councils. LARAC also found hardly any evidence of transparent price support from PRN funding despite this being presented as one way in which local authorities benefitted from PRN funding.
LARAC echoes the need for better data for non-household waste that is contained in the report and is calling for a national data reporting system that matches the Waste Data Flow system that local authorities are required to use.
