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Police called in after Defra packaging waste investigation

The police have been called in to investigate allegations of fraud in the plastic packaging waste sector, Defra has revealed, as it released the results of its fact-finding mission yesterday.

The investigation found that “reprocessors and exporters have been incorrectly issuing compliance documentation – packaging waste recovery notes (PRNs) and packaging waste export recovery notes (PERNs) – during 2002 and 2003, which has made it appear that they were recycling more plastic packaging waste than they were.”

Defra said some reprocessors have been suspended, but no individual reprocessor or exporter will be named following the investigation for legal reasons.

Commenting on the findings of the investigation, environment minister Elliot Morley said he was “extremely disappointed that a number of reprocessors have been operating inappropriately”.

Some reprocessors were found to be exaggerating the amount of plastics packaging waste received through poor documentation. Some had been accepting material with little or no verification that it was packaging waste, while others were not even weighing material correctly. In many cases suppliers receive a higher price for waste material that is packaging waste, which led to the overstating of packaging waste content, the report into the investigation said.

At several sites, PRNs were being claimed against material with high levels of contaminants included – paper, cardboard, metals, liquids – or against process waste that had arisen in the packaging production process, which is strictly not allowed, Defra said.

Statistics
As a result of the investigation Defra has said it is reducing the 2002 plastic packaging waste recycling figure by 34,790 tonnes (replacing the provisional reduction of 64,600 tonnes). Figures for 2003 will be reduced by 80,885 tonnes.

The total amount of plastic packaging waste recycled in 2002 was therefore 360,418 tonnes (20.7% of the plastics packaging waste stream), and 321,205 tonnes in 2003 (17.9%). However, Defra warned that even these figures could be subject to further revision as a result of ongoing police investigations and Agency monitoring.

Under the packaging regulations, the UK packaging chain has to reach a plastic packaging waste recycling target of 21.5% in 2004, which looks to be a difficult task. Plastic PRN prices have been moving upwards this month as a result, from under the 10 a tonne mark towards 15 a tonne.

But Mr Morley insisted: “Although the fact finding mission and Agency monitoring have uncovered cases of inappropriate issuing of PRNs, there will be no repercussions for any producer compliance scheme as result of this adjustment to the figures.

PRNs and PERNs are supposed to be issued by reprocessors against any packaging waste they have recycled or recovered, and these notes can then be sold to packaging waste producers to show that they have carried out their financial responsibility to recycle their share of packaging waste under the 1997 packaging regulations.

Defra was alerted late in 2002 that some reprocessors might have been issuing PRNs without the corresponding recycling having taken place. The issue was also detected in the wood waste sector, which is being tackled by a new voluntary industry protocol (see letsrecycle.com story). The fact finding mission visited 19 plastics reprocessors and exporters during the course of 2002 and 2003 “selected on the basis of an Agency risk assessment”.

The report into the fact finding mission reveals that the Agency had been expecting to call at “several” other reprocessors, but had been prevented from doing so because “fires and burgularies” were reported as having taken place “which meant visits were not possible”. In such cases, the report said the Agency has issued formal letters and suspended the relevant reprocessors.

Weaknesses
Mr Morley said the three regulatory Agencies “are aware of where the weaknesses lie”, and that he hoped to see other materials sectors taking up the approach of the wood sector in its new protocol.

“Our aim must now be to improve the current system and make it more difficult for companies to inappropriately issue PRNs,” he said.

More information on the plastic fact-finding mission is available in this Defra report.

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