Chancellor urged to confirm packaging targets

The trade body for the reprocessing and recycling sector set out a four point agenda of items it is looking to see introduced as part of the governments announcement on Wednesday (March 21).

The Resource Association has urged the government to confirm the increased packaging recycling targets for 2013-17 as set out by Defra as part of the packaging consultation in December 2011 (see letsrecycle.com story) and to link this increase to a reform of the Packaging Waste Recovery Note (PRN) system.

In its statement, the Association said that the government needed to create a level playing field for UK plastics reprocessors. Under the existing system, packaging producers have to show that they have funded a certain amount of recycling each year by purchasing PRNs, or PERNs for material that is exported.

Currently, the value of PRNs is the same as PERNs, and UK reprocessors can only claim evidence against material which is actually recycled, but PERNs include all of the material in bales, including contamination, something the Resource Association claims is creating a distortion in the market. This is something flagged up by plastics recycler Closed Loop Recycling earlier this month (see letsrecycle.com story).

Landfill Communities Fund

Among the other items to the Association is keen to see implemented is a revision to the Landfill Communities Fund to see funding channelled toward the recycling sector. The Association says that this funding should be focused on research and innovation to increase the ability of UK manufacturers to use recycled material in products.

Resource Association chief executive Ray Georgeson, said: Despite many concerns aired about the attitude of the Chancellor to environmental matters, we acknowledge some positive signals in recent times on boosting the green economy such as the Green Investment Bank, carbon floor pricing (and dispensation support for some in our sector), and the Green Deal.

That said, we look to the Chancellor for some fresh signals of commitment to the green economy, and in particular to boost efforts being made by UK reprocessors and recycling companies to invest in recycling infrastructure and the capacity needed to develop our circular economy using quality recycled materials in quality manufactured products in the European economy where possible.

The Association is also calling for the government to establish an independent Resources and Circular Economy Commission to explore the potential for a number of financial incentives for the recycling sector including levies on using virgin material for production and reduced VAT for recycled products.

Mr Georgson added: The potential is there to take a fresh look at green fiscal measures in the waste and resources sector which is now in need of some attention again, having been left behind somewhat while policy attention was more focused on energy use.

We therefore call on the Chancellor and the business secretary to co-convene a Resources and Circular Economy Commission and give it a broad remit to examine fiscal regulatory and other policy measures that could give the resources and reprocessing industry the vital boost needed to trigger further investment in the UKs green economy infrastructure.