It is thought that the government may well opt for the motor manufacturer's preferred “own marque” option, which would see each manufacturer responsible for treating all ELVs that it originally produced. The option would also see manufacturers organising their own contracts with accredited treatment facilities (ATFs) to carry out obligations.
A consultation paper is expected to outline the direction the government wishes to take as it hopes to implement the European ELV Directive by summer 2003, although there are still details to be negotiated between the motor manufacturers and the vehicles recycling industry.
Recyclers and dismantlers are happy with manufacturers being responsible for “own marque” vehicles, but are not comfortable with the power to contract with ATFs lying in the hands of the motor manufacturers.
Duncan Wemyss, Secretary of the Motor Vehicles Dismantlers' Association, said: “The only monies that would seem to be available to the dismantling or recycling industry would seem to be via the motor manufacturers. We would have to contract with the motor manufacturers, unless we are able to obtain money through the last owners – if they would rather deal with us than transport their ELV long distances to a motor manufacturer facility.”
One recycling source said the worry is that until 2007, the manufacturers will not be obliged to provide any funds to gear the recycling industry up to the required standards. The investments would therefore have to be made by recyclers if they want to be eligible for the contracts offered by the motor manufacturers in 2007. If recyclers or dismantlers have invested heavily, but then fail to gain contracts with motor manufacturers, many businesses would go bust.
Another representative of the metals recycling industry suggested that some recyclers might even consider challenging the measures on the grounds of their being anti-competitive.
Costs
Costs for treating each vehicle – not including any capital investment needed – has been put at around 50- 75. Time could also be a cost issue.
“We've heard that some recyclers can depollute a car in 12 minutes,” one company said. “That's all very well, that may well be possible, but not day in and day out.”
Extra costs would come from having to remove glass and plastics, from landfill charges for material not recovered and because oils and some other substances could be classified as hazardous waste, requiring special treatment.
VRNs
Recyclers would like to see a free market system of contracting arrangements, and are known to be fond of the idea of vehicle recovery notes, a simpler form of the packaging waste recovery note system.
However, the motor manufacturers have blocked this from happening.
One representative of the motor industry told letsrecycle.com: “With vehicle recovery notes (VRNs), it wouldn't be like the packaging system, in which companies only need PRNs to reach around 60% packaging waste recovery. We would need to find 100% of the VRNs, and that would mean the company holding the last few VRNs could hold us virtually to ransom, and charge whatever they want for them.”
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