CoSWiG, which represents the largest share of buyers in the packaging waste recovery note (PRN) market, discussed its concerns with the minister that there may be some irregularities in the issuing of PRNs.
The high levels of PRNs issued in the wood and plastics markets, as seen in Environment Agency statistics, have raised some eyebrows in the last few months. But a statement from CoSWiG has gone much further in highlighting the problem. The group alleges: “Abuse of the PRN/PERN system is currently undermining the UK’s ability to invest in the development necessary to achieve the expected targets.”
Enforcement
The group stated that its members, who include Valpak, Wastepack and Biffpack, will not trade with any reprocessor found by industry regulators to be issuing fraudulent PRNs and PERNs (packaging waste export recovery notes). CoSWiG said it will be assisting trade associations and the enforcement agencies to combat PRN fraud, and called for a confidential phone line to be set up for reporting suspected cheats.
Commenting on the Group's stand, CoSWiG chairman Phil Conran said: “We welcome the environment minister's support in stamping out PRN abuse. We wish to send a clear message that fraudulent PRN activity, which is undermining the UK’s efforts to plan for the future, will not be tolerated.”
The Environment Agency, one of the regulators of the system, is also now looking at the issue of fraud in the PRN system, and its staff have been sent on refresher training courses.
A spokesperson told letsrecycle.com: “The Agency is aware of the concerns about the misuse of the PRN system and it is something we are looking in to. If there is any evidence of misuse, we will take action, and in the past this has meant revoking accreditation.”
Targets
While meeting with CoSWiG, Mr Meacher also gave some ideas on the future of packaging waste recovery targets in the UK. Mr Meacher stated that while recovery and recycling targets remain static for 2003, industry must prepare for a significant uplift of targets in 2004.
The minister has been roundly criticised by the industry for leaving 2003 targets the same as 2002. The decision means that reprocessors may be faced with an oversupply of PRNs in 2003 because of the ease of reaching the target in that year, a prospect which would lead to low PRN prices.
At the CoSWiG meeting, Mr Meacher said that in future, the government's preference would be to announce packaging waste recovery targets for three-year periods.
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