With signals that problems may be occurring in other materials, experts have told letsrecycle.com that this could be the “tip of the iceberg” in the PRN system.
Officials are very reluctant to divulge details of the case in question, because of ongoing investigations across the UK. But it is thought to involve between 60,000 and 80,000 tonnes worth of PRNs in the export paper sector, which could be worth, for example, at 20 each, more than 1.6 million.
Questions are being raised concerning the powers and efficiency of the Department for Environment, Food and Rural Affairs, as well as the Scottish Environment Protection Agency and the Environment Agency, in dealing with reports of the inappropriate issuing of PRNs.
Difficulties in tracking the notes in question have been further complicated by the fact that both the Environment Agency and the Scottish Environment Protection Agency are involved. Complications may also have been caused because some companies involved in the UK PRN system operate through subsidiaries or agents.
Damaging
The case, involving one party in England and one in Scotland, came to light in April 2002, but only in the last few weeks has SEPA confirmed that the double counting has taken place. The 12-month delay has been blamed on a “lack of joined-up thinking” between the regulatory agencies and DEFRA, but industry experts have said the delay could be “extremely damaging” to the markets.
DEFRA has been criticised for not taking the matter seriously in its role as policymaker. Figures in the industry have also blamed DEFRA for providing insufficient funding to provide “a set of teeth” for the two regulators.
Struggling
There have been suggestions made that it may have been “in the UK's interest to keep a lid on this kind of double counting”. However, it is thought more likely that the regulators have been struggling to resolve the matter partly because the legislation brought in by DEFRA is not tight enough in several key areas.
The government is currently pursuing an investigation into possible inappropriate activity in the wood sector (see letsrecycle.com story). DEFRA has been alerted to inappropriate behaviour in the issuing of PRNs in the plastics sector, but it is now thought that the wood sector is suffering largely from serious data inaccuracies rather than inappropriate behaviour.
Preliminary suggestions are that the amount of wood packaging in the waste stream had been underestimated in the official figures, and this has caused red faces within DEFRA. The issue was not thought to have been discussed in any detail at a recent press briefing by the Department.
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