URoc calls for halt to landfill testing changes

The United Resource Operators Consortium (URoc), which represents skip hire firms and waste transfer operators, has written to HMRC, the Chancellor George Osborne and other government ministers calling for the legislation to be postponed until October.

Under the rules, waste processors who want their material to be charged at the lower rate of landfill tax of £2.65 per tonne will have to produce loss on ignition (LOI) test results of 10% or less from next month – following a 12-month ‘grace period’ where the threshold was set at 15%.

The LOI test is used to determine how much non inert material is present in a waste load – and whether it should be eligible for the standard or lower rate of landfill tax. In order to ensure a waste load is eligible, samples of waste are heated to determine how much inert material is lost.

Any waste processors whose loads do not meet the 10% threshold will be expected to pay the standard rate of tax – which reaches £84.40 per tonne from next week.

‘Fine Talk’

At the ‘Fine Talk’ conference hosted in Liverpool earlier this month, Jenny Watts – director of URoc – had branded the 10% threshold as “restrictive but achievable” adding that “it was here to stay” (see letsrecycle.com story).

But, in a letter sent to HMRC and government ministers the association now claims that the regime should be delayed in line with the Scottish Government’s timetable to introduce 10% LOI from October. The organisation claims that this would remove the threat of ‘waste tourism’ which could see some processors haul loads north of the border to take advantage of the lower threshold.

URoc also holds reservations over the credibility of laboratory results and has asked for assurances that operators will not be penalised for small percentage failures. It claims that a result of 0.1% over the tax threshold could “destroy businesses overnight” and calls for a British Standard for testing.

Finally, the association is also calling for the government to recognise and endorse its quality protocol, which will demonstrate its members’ competence in producing qualifying fines material.

It concludes: “URoc calls for a delay in the introduction of a 10% LOI to facilitate time for the government to investigate and appropriately develop a testing regime that is fit for purpose by building in a level of tolerance for the inherent inaccuracies.”

Working Group

URoc’s revised position could see it conflict with other members of the Government Industry Working Group, which includes the Environmental Services Association (ESA), the Treasury and the Environment Agency, who have been engaged in discussions to reach a consensus on LOI testing.

One industry source told letsrecycle.com that it seemed unlikely HMRC would change its position on the 10% threshold so close to the proposed start of the regulations coming into force.