Turning on the positive helps Valpak meet targets.

A steeled determination to ensure efficiency and success in meeting its packaging waste obligations has been the hallmark of John Turner's stewardship of Valpak.

John Turner retires as chief executive of Valpak on 2 April 2002. However, he is not switching off from all his work with the UK's largest compliance scheme for he remains as a consultant until July and is playing an active part in specific Valpak work, such as meetings over future EU targets. There is also speculation that he will be offered a further position with the organisation, such as the role of chairman.

John Turner is to retire as chief executive of Valpak

For John Turner, who has been one of the key players through the development and introduction of the regulations, his stepping down comes with some regret in that there was still no announcement by April as to whether the UK had achieved its targets for 2001. He argues that a huge amount has been achieved in the face of controversy over several issues such as PRNs, how targets were or were not met for 2001, and the complexity of the UK's system.

Can all this be seen as a failure within the UK to provide a robust system which delivers results? Mr Turner acknowledges the difficulties but takes a very positive view: "Packaging waste recovery and recycling in the UK is clearly not a failure. There is still a lot to do, and I do think it will take them a while to gear up to meeting the future targets. But, there are a lot of initiatives in hand, work by the compliance schemes, there is the waste strategy, and work by the PIU."

The work of Valpak itself will be important in delivering the PRNs, as packaging waste evidence. Mr Turner reflects that "in the formative days of Valpak, a lot of work had to be done to get the thing off the ground. Getting people to back you with no track record and convincing people there was an organisation even though it had no track record was not easy. We had to convince people there was a longer term gain in supporting Valpak and tackling packaging waste."

Mr Turner was instrumental in developing the PRN market with the organisation which came before Valpak - VWRag - which developed the PRN concept of how money was put into the reprocessor and collection chain. One milestone, recalls Mr Turner, was the first contract for supply of PRNs - with the paper and board maker David S Smith, which also owns the paper recycling business Severnside. "I started the market with David S Smith for PRNs, signing a contract with Peter Williams. It was quite a difficult time then working out where to pitch PRNs, there were big differences in packaging flow data."

At that time there was only going to be Valpak but concerns from the OFT led to the creation of other compliance schemes. There was some criticism of Valpak's size and approach and Mr Turner remarks: "I regret that there was a lot of silly nonsense around at Valpak from others. A lot of it was unprofessional and not true. We would expect it, we were the market leaders but we were not affected - we were and are well co-ordinated and organised."

Mr Turner believes that Valpak has helped to keep people's minds on the costs of achieving the targets. "People were apoplectic at the beginning, at the thought of another tax. I went to members meetings and faced huge explosions at the cost. People got more circumspect about this when they realised that the costs in the UK were nothing like those in the other countries that members were trading in. They were substantially more in those other states."

Valpak did have first starter advantage, admits Mr Turner. "We did a lot of work at the start. Mike Beard  did a lot of work targeting the market and did a good job on it so that we achieved a high level of visibility. Other schemes came in - many signed up their existing customers. This was a healthy move and it started competition. Since then we have got the Coswig group going to talk about the European issues and have moved away from people refusing to talk to each other. This is not a formal trade association although we would all benefit in the longer term if it became one."

Today, Valpak continues to grow - it has 3,200 members and 60% of the market - and is expanding operations from its base in London's West End. Now the compliance scheme has opened a second office in Stratford upon Avon which, says Mr Turner, is "more relevant to what we are doing. While at the start the organisation was set up with temporary people", Mr Turner says he has changed all that. While the organisation remains a "small company with 100 people, we are a strong player and set out to recruit good people". Referring to the fact that the salaries of some staff are higher than those to be found in other schemes, Mr Turner points out that: "Because we are in a non-profit making organisation we can't issue share options, so we are down to one or two basics."

Flotation

Flotation of the business has and remains an option. Mr Turner says that it is too early to say whether this will happen. "It is a matter of what is in the best interests of the business - we do need to have the ability to fund large investment. There is plenty of money available from venture capitalists. They see this sector as attractive - you've always got to eat and you've always got to get rid of your waste. So, there is cash there if you have the right business plan."
He explains that decisions on large scale investment are still to be made. "We may or may not, there is a possibility we may - I cannot say while we are working out how to comply in the future."
It would seem that Valpak is keen to get more involved with the collection and sorting of packaging waste. Mr Turner speaks  excitedly about the Neath Port Talbot recycling and energy from waste plant developed by Portugese firm HLC. "This is a massive investment and we are talking to the ex-Henley Burroughs people who are engineers and working on this. I have developed a working relationship with them. Some of the concepts I am attracted to, and they are attracted to us as a business because we have the requirements and the will to work on this."
Mr Turner also referred to another similar project in Wales in which HLC are involved. They are working in Wrexham - if we were to have a MRF they would be a good prospect.

Reprocessors

Much of Valpak's work involves contracts with reprocessors for PRNs. Mr Turner remarks: "This is an area where Valpak expects a responsible approach from its PRN suppliers. There have been a number of debates over reprocessors and about how they would spend our funds. Where they do they are contractually bound to their obligations. As far as humanly possible we are not in the business of handing over money, so that it goes nowhere." However, he confirms that Valpak accepts that the funds can be used to support prices and existing work and that just because money is not spent on millions of kerbside boxes this doesn't meant that a reprocessor is not using PRN revenues correctly.
"We are trying to ensure as far as possible that our reprocessing contracts have business plans, that the money is going in the right direction, so we have agreed that the agency should be watching reprocessors." Mr Turner sees government delays in setting targets as creating one of the major difficulties in planning work with reprocessors - Targets for this year should have been done six months ago.

Electronics

Other Valpak developments could see the scheme involving itself under the Waste Electrical and Electronics directive. Mr Turner says that Valpak's work in this area depends on how legislation turns out. "This is a common market with packaging, particularly from the kerbside approach. People are chucking away phones, toasters, that sort of thing. If you conceptualise that over the next few years you would build MRFs when planning and finances are ready - and would build those with something to handle electronics. You could burn some and recover electronics."

Local authorities

Mr Turner accepts that the local authority sector is one which compliance schemes need to develop and that Valpak is not finding it an easy process. "There needs to be much more activity with local authorities, as Wastepack have been trying to do getting MRFs and Pink Bags going. We [Valpak] have had waste summits with counties and districts but it is hard getting them to move forward. We have to move through a tendering process and work with waste management companies. It is a complex subject."

Highlights

Personal highlights during his term as chief executive, he says, are helping to ensure that Valpak has complied every year with sensible market costs for its members. And, he is pleased with the input of Valpak into government thinking and his own participation on the Advisory Committee, originally with his former post as a director of Coca Cola UK and more recently as chief executive of one of the three schemes on the committee. Mr Turner remains clear about his main achievement: "I feel very satisfied in the way we set up Valpak in the beginning. Now we have strong agendas and are moving forward. There is a huge amount of work being carried out in planning ahead to meet the challenge of tomorrow at some sensible cost."
If he could change anything, he would tackle two areas. One is data handling and be believes Valpak's system is the best in the sector. "That is a big beef that I have, we need a national data handling system. We have developed the system to handle submissions on line, it is crazy punting all these bits paper around. And, he would like an audit business independent of the Environment Agency and Government, so all the data and audit handling could be carried out to one standard."

The future

As for the future, he says: "I have the feeling that I have had a great time here and I have thoroughly enjoyed it. I have met so many interesting people in the waste industry in trying to move it forward. Now the new chief executive has to be left to do the job. As to his role after July, he says that would be entirely up to the board of Valpak if they consider they want me to advise them. My contract expires at the end of July."

As for targets and 2001, Mr Turner says the key thing is that he would look to have left the chief executive's post earlier this month in the knowledge that the UK had complied in 2001. But, whatever way it turns out, there has been a big increase in activity. The UK recovered 3.3 million tonnes in 1997 and this is plus one million to about 4.3 million now.