BPF seminar hears calls for split plastics PRNs

Plastics recyclers have called for a split target for plastics under the packaging recovery note (PRN) system, in order to prevent what has been described as an unfair advantage for exporters of plastic waste.

The call was lead by Bernard Chase, purchasing director of Yorkshire-based Regain Polymers, speaking at the British Plastics Federations recycling seminar Replast, in London on Wednesday (November 6).

According to Mr Chase the government must look at immediate and wholesale reform of the PRN system, which it is argued favours exporters of material who are able to claim the full value of a PRN for every tonne of material they export including contamination while domestic reprocessors can only claim PRNs against the material that they process.

And, he added that a split target for domestic and export, similar to that introduced for glass packaging where a higher proportion of the target (63%) has to be met through glass going to remelt applications than for glass going into aggregate uses (37%) would help to drive more quality material towards UK processors.

He said: The glass sector has been split to try to drive better outcomes. If we have done it for glass, why cant we do it for plastics? Lets have a global target split between mechanically recycled and that which is traded abroad and use that to level the playing field for the UK recycler.

Revenue

Other speakers at the event echoed calls for a reform to the PRN system, with some arguing it has failed to fund development in the domestic recycling sector, which was among its aims when set up by the government to increase packaging recycling in 1997.

Nick Cliffe, marketing manager at Dagenham based bottle recycler Closed Loop argued that little of the PRN revenue found its way back to recyclers, as high PRN values were being used by suppliers and buyers to negotiate less favourable prices for reprocessors.

He said: The question really is: what are we able to, or what are we forced to spend the money on? We have come under increasing pressure- especially over the last few months- from both sides of the supply chain. Waste management companies are well aware of the value of the PRN and want their cut and customers are equally well aware where the system is.

Fluctuation

Mr Cliffe also commented that due to the fluctuating nature of the value of PRNs, it is difficult for companies to plan any long term investment in new infrastructure, with income varying from month to month.

He added: Can we build future forecasting on a revenue stream that is so variable? It just shows that the system is desperately in need of reform.

Jessica Baker, managing director at film reprocessor Chase Plastics, commented that PRNs price rises witnessed in the second half of the year had been caused in part by a reluctance from the Chinese market to take poor quality material in light of the Green Fence initiative, as well as the rising plastic packaging recycling target in 2013, which went from 32% to 37%.

Mrs Baker added that high PRN values are incredibly damaging for recyclers, who are unable to put the price of their recycled polymers up to a level that is higher than the price that manufacturers would pay for virgin polymers.

She said: People may think that getting PRNs of 70 per tonne is fantastic but that means that the feedstock price is elevated beyond that level to much higher than I would usually be paying. But, when feedstock gets to a certain price, we cant then pass that on to our clients.