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DEFRA checks for fraud in plastics recycling sector

Potential fraud in the plastics recycling sector is being checked out by the Department for Environment, Food and Rural Affairs, a spokesman confirmed.

Following on from last year's “fact-finding exercise” into the inappropriate issuing of packaging waste recovery notes (PRNs) in the wood recycling sector, environment minister Elliot Morley has ordered an investigation into allegations made against plastics reprocessors.


”Obviously it is very important to make sure there is no fraud going on.“
– DEFRA spokesman

The investigation is a result of concerns in industry that the sizeable jump in the amount of plastic packaging waste recycling reported from 2001 to 2002 could be the result of wrongfully issued PRNs – the documentary evidence used by recyclers to show that reprocessing has been carried out.

A DEFRA spokesman told letsrecycle.com: “Obviously it is very important to make sure there is no fraud going on.”

Despite difficult trading conditions in plastics recycling, the UK reported an increase in plastics recycling from 16% in 2001 to 22.7% in 2002. After consulting with representatives of the plastics recycling industry DEFRA reduced the 2002 plastics reprocessing figure by 64,000 tonnes.

DEFRA will be working with the Department of Trade and Industry as well as the devolved administrations and the regulatory agencies on the investigation, which is due to finish at the end of May.

Weaknesses
A statement from the government said that the exercise will look for weaknesses in the existing arrangements of recording and monitoring data as well as the audit trails adopted by reprocessors.

The plastics investigation is to take a slightly different form to the wood fact-finding exercise of 2003, because of the relatively large number of accredited plastics reprocessors. Some reprocessors are to be visited by Agency inspectors, auditors and on occasion governmental representatives. Others will be invited to attend workshops at their local Agency offices.

Plastics reprocessors welcomed the announced investigation, and called for the government to address the “anomalies” found in reported PRN data.

Andrew Simmons, chief executive of plastics recycling organisation Recoup, said: “This enquiry is welcomed but is overdue. A fair market for PRNs is an essential precondition for investment and growth in recycling. We have consistently highlighted concern about the difficulties in reconciling plastics PRN reported data and 'on the ground' activities. It is vital that this enquiry provides a clear explanation for these anomalies, which have lead to concern amongst recyclers.

“We will press for this enquiry to provide sufficient scrutiny so that these differences can be understood and explained. Recoup and, I am sure, other plastic packaging recyclers will be pleased to contribute to work to ensure an efficient and fair market for PRNs,” Mr Simmons said.

For more information on how the PRN system operates in UK packaging waste recycling, see the letsrecycle.com legislation page.

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