But, some schemes describing 2004 as a “nightmare” year, in which it has been very difficult to get hold of the right kind of PRNs for members' obligations, particularly in steel and aluminium.
Under the regulations, packaging producers must pay for their share of packaging waste recycling and recovery in the UK, which is carried out by purchasing PRNs. Producers can comply individually or via compliance schemes.
”2004 was a challenging year for the PRN system, as industry saw the material-specific targets really begin to bit. “
– Steve Gough, Valpak
The UK's largest compliance scheme, Valpak, said 2004 showed that long-term planning was “vital”, and that schemes needed to put in place contracts with reprocessors for the supply of PRNs.
Valpak chief executive Steve Gough said: “Valpak is pleased to announce that it has successfully complied with the Packaging Waste Regulations on behalf of its members for 2004. 2004 was a challenging year for the PRN system, as industry saw the material-specific targets really begin to bite.”
Mr Gough said the “unsustainably high” prices of PRNs seen at the end of 2004 – up to 120 a tonne in some materials – was not representative of the whole market for the year, and only represented a small tonnage.
Speculation
Other schemes also felt the “bite” in the 2004 market, with Biffpack's Phil Conran saying: “We are extremely pleased to report that we have fully complied with all our 2004 obligations in what ended up as a difficult market as uncertainty of supply led to some wild speculation.”
Mr Conran said Biffpack had achieved compliance in what it believed “satisfies both the desire of our members for low costs and the needs of our PRN suppliers for a strategic partner who is able to provide waste related benefits in addition to well managed PRN demand”. Biffpack had kept its average PRN buying price below 10 a tonne, he added.
”I am a bit surprised to find the availability of steel was as difficult as it turned out to be.“
– Geoff Butterworth, Paperpak
Wastepack, the scheme run by the Wastelink Group, said that it had secured sufficient PRNs, with spokesman Mike Beard reporting: “We believe that we have acquired all the PRNs required under the regulations. We are confident that when the regulator has audited our activities they will confirm that we have complied with the regulations.”
Steel
As with many of the schemes, Paperpak told letsrecycle.com of its surprise over the difficulty in obtaining steel PRNs. Paperpak's Geoff Butterworth said: “We have secured every PRN that we need to secure last year's obligations for our members. We had very little difficulty in following our operational plan, except in one material where we had some difficulty, but have been able to cover our obligation. I am a bit surprised to find the availability of steel was as difficult as it turned out to be.”
Continued on page 2
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