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Associations battle over role of export markets

The Resource Association has criticised a report by Defra on the benefits of the resource management sector, claiming that it understates the growth potential for reprocessing material in the UK.

In contrast, the Recycling Association has welcomed the government study saying “it recognises what a vital, burgeoning and truly global industry we [the recycling sector] have become”. The Recycling Association also considered that the Department for Environment, Food and Rural Affairs (Defra) report indicated a “tacit acknowledgment that the government recognises the important contribution of, and balance between, the UK and export markets”.

Opinions are split over the benefits of the overseas export market on reprocessing
Opinions are split over the benefits of the overseas export market for reprocessing

The Recycling Association has about 71 members including Kimberly Clark, Biffa Leicester, SITA UK, Veolia and Viridor.

The Resource Association, which champions UK reprocessing, has about 22 members including Novelis, DS Smith and ECO Plastics.

Responding to the report, which was published on February 5 2015, the Resource Association called for the government to get WRAP (the Waste & Resources Action Programme) to change its focus back to the development of recycling markets in the UK. This would include more research work by WRAP and more work on the quality of feedstock for reprocessors.

Illegal shipments

Ray Georgeson, chief executive of the Resource Association, said that “while the report highlighted the contribution of domestic reprocessing we believe it understates the potential for further growth.”

Mr Georgeson commented that there are “issues around illegal shipments of waste” on the export market. And, while acknowledging that the UK export of recyclables is “a British success story” he warned that “it also means that in some instances potential to add value to product is being lost to overseas manufacturers. Reprocessor added value to raw material input (in the manufacture and onward sale of new recycled products) can be at least fivefold the input cost of recovered material.”

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Overseas markets

Simon Ellin, chief executive of the Recycling Association, acknowledged the importance of UK markets for recyclable materials, but pointed out that overseas markets were also needed.

Commenting on the Defra report, he said: “The Recycling Association would welcome further reprocessing investment in the UK across multi-materials because as the report acknowledges, it adds tangible benefits to the UK economy on many levels. We are though very encouraged to read positive acknowledgement of the contribution the export market has had and will continue to have on the UK waste industry.”

Dr Ellin added: “We have argued long and hard in support of the role exports have to play and often in the face of inaccurate and sensationalist comments from decision makers and journalists. Without export, the UK industry wouldn’t have grown on this scale and neither will it continue to grow without it. Exporting provides markets for surplus materials that cannot be utilised in the UK, it adds competition in the market place, it creates jobs, it generates wealth and, as recognised in the report, is often a wonderful example of a circular economy.”

Resource Association chair

Commenting on the three main points in the Resource Association’s response (more research on domestic markets; refocusing of WRAP; and taking a lead on the circular economy), Peter Clayson of DS Smith and acting chairman of the Resource Association, said: “In all these areas, the Resource Association and its members stand ready to work with Defra to support their ambition for resource management. All three actions highlighted require leadership from government but also require the industry to respond and engage, which we are keen to do.”

Related Links

letsrecycle.com article on Defra report: Waste sector creates £6.8bn for UK

Defra report

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