The decision to scrap the idea came after a meeting last month between Patricia Hewitt, Secretary of State for Trade and Industry and the Society of Motor Manufacturers and Traders. Mrs Hewitt heard the car makers voice concerns that a VRN system along the lines of the packaging waste PRN system could mean they were “held to ransom” by dismantlers and recyclers.
The VRN system had been favoured by several dismantlers and metals recyclers in talks with the department over how to implement the European ELV Directive.
Now the DTI's ELV consultation group will focus purely on the “own brand” – also known as “own marque” – option for implementation (see letsrecycle.com story).
Evidence
Loosely based on the PRN system of compliance, the VRN system would have seen manufacturers paying for recovery notes as a form of evidence that the sufficient amount of recycling of vehicles had taken place.
The Motor Vehicle Dismantlers' Association and the British Metal Recyclers Association favoured the VRN option because they believed it would provide more of a guarantee for their members to invest in improving standards of treatment facilities before motor manufacturers' financial responsibilities begin in 2007.
The recovery note system is keeping the cost of packaging waste compliance lower for obligated companies in the UK than in other EU Member States. But motor manufacturers do not feel such a system will help vehicle recycling rates, which are much higher than packaging waste recovery rates, move from the current 75% levels to the 85% and 95% demands of the ELV Directive.
The packaging system has also seen market forces making PRN prices fluctuate, and this has made some manufacturers wary of copying the system for ELVs because of the lack of certainty involved.
Manufacturers also believe a VRN system raises the possibility of certain dismantlers or recyclers holding manufacturers “to ransom” by pushing up prices for VRNs that manufacturers would be forced to buy to comply with regulations.
Meeting
The SMMT confirmed to letsrecycle.com that it had a “constructive meeting” with the minister and that it was the end of the road for the VRN system.
“We were concerned about the use of VRNs from our experience of the packaging waste sector,” said Paul Everitt, head of policy and economics at the SMMT. “There were concerns about the costs involved and the complexity of the system. As an industry we concluded that focussing on the “own marque” option is the way forward.”
Mr Everitt said that the development was a positive step for everyone involved, not just the motor manufacturers.
“It's positive for all the sectors involved in ELVs,” Mr Everitt told letsrecycle.com, “it means there's less uncertainty involved now that we're not looking at different options. It's now clear, and everyone can now focus on moving forward and working out the details of this option.”
However, he added: “We've only made one step further on with this. There's still a way to go.”
Continued on page 2
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