Packaging: Extended Producer Responsibility

Wayne David Excerpts

Wednesday 3rd April 2019 Commons Chamber

[Anna McMorrin]

My hon. Friend is completely correct. We have to find ways of recycling all waste, or of limiting its use. That is at the heart of the change that we need to make. “Blue Planet II” has inspired changes up and down the nation, with people increasingly moving from single-use plastic bottles to reusable bottles, increasing their use of travel cups and moving away from plastic straws and cutlery.

[Wayne David (Caerphilly) (Lab)]

Straws can provide examples of extremely good practice. A company in my constituency has won a £1 million contract to provide paper straws to McDonald’s. Does my hon. Friend agree that that is a good example?

[Anna McMorrin]

That is a fantastic example, and I hope that businesses in my own, neighbouring, constituency will be able to follow suit. We have had some fantastic local campaigns in the constituency. The initial plastic-free Rhiwbina campaign has now spread to plastic-free Llanishen, plastic-free Pontprennau and plastic-free Whitchurch. Those are all local communities with worried residents and children who are keen to make a difference in their own way, but this only goes so far. The brilliant “Packet-in” campaign from Rhiwbina and Coed Glas primary schools has seen the children collect packets that cannot be recycled and send them back to the chief executives of the manufacturers, accompanied each time by a letter demanding to know why they are not doing any better. However, we know that the reason why is that the issue needs structural, systemic change at Government and industry level. To do that, we need to legislate to incentivise big business and packaging producers to take responsibility for their waste and to ensure that the right infrastructure is there. That is why I introduced my Packaging (Extended Producer Responsibility) Bill which, if passed, would require producers of packaging products to assume 100% of the responsibility for the collection, transportation, recycling, disposal, treatment and recovery of those products.

My Bill would be a much-needed reform to the broken UK waste system, which is not fit for purpose. Introduced by the Conservative Government in 1990, this piecemeal and disjointed system sees a few large companies benefit and masses of waste shipped overseas out of sight, as my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) said, and in all probability dumped into our oceans.

There are two main problems with the current system. First, waste collection is based on a producer responsibility note or PRN scheme. Under the current provisions of the producer responsibility obligations, businesses that handle packaging must fund the recovery and recycling of packaging material in proportion to the amount they have placed on the market. In other words, the more that packaging producers make, the more they pay, which sounds quite fair.

Unfortunately, the implementation of the PRN scheme is far from fair and disproportionately places the burden of waste collection on local councils. PRNs and PERNs—packaging export recovery notes—allow companies to comply technically with the law, as opposed to following the spirit of the law. What I mean by that is that if companies are in possession of a PRN or a PERN, they have the legal evidence needed to state that they are complying with the law, but PRNs and PERNs then become a substitute for businesses meeting their obligations through their own recycling efforts. That then places the burden of big business’s waste squarely on to local councils and the British taxpayer. There are no financial incentives for businesses to stamp out the bad practice, because the current costs in the system are so disproportionately low compared with the cost of recycling waste.

To put that in context, the UK’s PRO fees are among the lowest in the EU and leave British taxpayers to cover around 90% of the costs of packaging waste disposal. The way that PRNs and PERNs are sold on an open, fluctuating market means that the price can fluctuate based on supply and demand. Due to market volatility, the growth of UK recycling capacity is then restricted. Instead of investment in UK recycling, much of the growth in the waste disposal sector has been achieved through exporting waste and through a growing dependence on export markets.

To put things bluntly, between 2014 and 2016, the average revenue from compliance with the system was about £60 million a year, but the estimated cost of recycling services for a local authority was nearly £600 million. That is not sustainable. We cannot continue to export our waste abroad to countries such as China, which has taken 60% of the UK’s plastic waste over the past decade. In 2017 alone, the UK’s waste exports had the same CO₂ emissions as 45,000 cars. China stopped all mixed-grade plastic imports from other countries in 2018, so vast quantities of mixed-grade plastic UK exports no longer have an overseas market.

Our councils cannot keep funding the costs of the broken system, especially when they are reeling from the austerity agenda of successive Tory Governments. Due to local government cuts, more than half England’s councils have had to cut budgets for communications and collections for kerbside plastics recycling. We need to act now to make our waste collection systems fit for purpose, and many producers agree.

Since I introduced my Bill, I have built a coalition of industry around the positive change that is needed. This has included producers, manufacturers, supermarkets, industry bodies and non-governmental organisations. They all acknowledge that the system needs to change and that they need to take more responsibility for their own waste, but they need several things to happen.

First, any new extended producer responsibility scheme must have transparency at its core to ensure it is clear where the fees collected from producers and retailers are being spent. The fees should be put back into the UK’s recycling and reprocessing infrastructure, and into any communication programmes surrounding it, to make it work. Funds raised within the system must stay in the system, and a single not-for-profit organisation could be established to make that happen.

Secondly, local authorities should not be out of pocket for any recycling or waste collection they undertake. Thirdly, charges on producers should be modulated, varying based on the recyclability of packaging, and with higher fees for using more environmentally damaging materials.

Fourthly, any new scheme should encourage innovation in packaging design and be capable of responding flexibly and swiftly to improvements in packaging production. Finally, local authorities should be supported to improve the consistency of material collected for recycling.

I welcome the much-awaited resources and waste strategy, which was recently published by DEFRA.