On December 12 Mr Meacher wrote to various government departments recommending that the recovery and recycling targets for packaging waste in 2002 should be 60% recovery and 19% material specific recycling. The higher the target, the more packaging waste will need to be recovered and consequently PRNs (packaging waste recovery notes) will have a higher value.
But, Brian Wilson, who has responsibility for environment issues at the Department of Trade and Industry, in a letter to Deputy Prime Minister John Prescott, says: “Given concerns over the economic difficulties that may lie ahead for the business community, I am unable to agree to the proposal outlined in Michael Meacher’s letter of 12 December 2001, that the recovery and recycling targets for packaging waste in 2002 should be 60% recovery and 19% material specific recycling. Instead, I propose a slightly lower recovery target of 59%, but agree to a material specific target of 19%.”
Mr Wilson is at pains to point out the pressures placed on businesses because of the economic downturn. He writes: “You will be aware that the DTI held a Summit on 5 December 2001, in order to give the representatives of our manufacturing industry the opportunity to discuss the difficulties they are experiencing at this time, and in particular since 11 September 2001.
Psychological
“This meeting reinforced my belief that we must be cautious in loading additional burdens on industry over the next year. As a result, I feel very strongly that we should minimise the cost of packaging waste recovery to industry as far as possible. I believe a target of 59% not only has less psychological impact than 60%, but also that a 59% target is as much as the industry can bear at present. It represents a significant (3%) increase for obligated business and will clearly demonstrate to the Commission, business and other key players that we are committed to raising our game on recycling levels.”
Mr Wilson takes the view that the 60% level should not be set for fear of the UK failing to meet an EU target this year or in the future.
Because of the disagreement over the packaging waste targets for 2002, compliance schemes and obligated companies are not likely to hear what the actual targets are until January. The schemes have told letsrecycle.com that the delay in a decision over the targets for 2002 is making their business planning difficult and hinders discussions with reprocessors who issue PRNs.
There is some sympathy in the packaging waste marketplace for Mr Meacher's target of 60%. While this would put more pressure on the sector, the fact that targets for 2001now look likely to be met, and PRN prices weakened in December, there is logic in pushing targets up next year. By 2006 the UK will need to reach a level of about 68% and a higher target next year could mean smaller steps between 2003 and 2006.
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