The position reflects the government’s position as of 31 March and has been revealed the 2023 Project Delivery Confidence report published last week (20 July), compiled by the government’s Infrastructure and Project Authority, which works with HMRC and the Treasury.
Each government department publishes a detailed information about projects on the Government Major Projects Portfolio. This includes a delivery confidence assessment rating, financial information (whole life cost, annual budget and forecast spend), project schedule and project narrative.
Red
The report ranked the delivery of the packaging reforms which includes consistency in recycling, extended producer responsibility and a deposit return scheme, against a timescale of 31 March 2027.
A red ranking is described by the government as meaning that “successful delivery of the project/programme appears to be unachievable”.
It also means there are “major issues which at this stage do not appear to be manageable or resolvable. The project/ programme may need rebaselining and/or overall viability re-assessed.”
Packaging
Explaining the red ranking, the document states: “The Infrastructure Project Authority’s delivery confidence assessment rating at remained at red [from March 2022]. Defra agrees with this rating.
“Delivery confidence is low due to the challenging timescales in which Defra needs to implement the reforms. Work to support this implementation is ongoing with a particular focus on strengthening our plans, programme control and benefits management.”
The poor ranking was against a schedule of delivering the reforms by 31 March 2027. The report added that the reforms programme has been “delayed repeatedly”.
While the two key consultations have been published for EPR and the DRS, i said the consistency response remains “outstanding”.
The report also says that “detailed delivery” of the reforms “has been reprogrammed such that target end date is still feasible, but there is limited contingency available”.
This could suggest particularly for EPR, the legislation itself could be implemented, but any costs pushed back to a later date.
Costs
In terms of budget, so far the “variance” from the original cost “has exceeded 5%”. This was primally due to delays, and because the baseline that was approved by the Investment Committee was “subject to change”.
The project’s departmental-agree monetised benefits remains at £1.16 billion.
The report says: “This estimate is based only on the economic transfer of packaging recycling and waste management costs from local authorities to producers. Making obligated producers responsible for the disposal cost of their packaging is a key outcome of the programme.
“Qualitatively, we understand there are significant additional benefits and the modelled values of these are currently undergoing review; we will be in a position to update on these by 31/12/2023.”
Delay
The report will add further fuel to strong rumours, which are yet to be confirmed, that EPR is going to be delayed.
Producers have not been shy in calling for a delay, warning that it will lead to increased costs for consumers.
The Prime Minister said in parliament last week that these concerns have been raised with him, but said Defra will issue an update in due course ( see letsrecycle.com story).
Defra however, has insisted that its position has not changed ( see letsrecycle.com story).
Subscribe for free