Valpak says the ruling by SEPA introduces an “uneven playing field” and that Valpak chairman John Gummer shares the anger of Environment Minister Michael Meacher.
One of the key issues related to meeting the packaging waste regulations is that schemes are expected to buy Packaging Waste Recovery Notes (PRNs). The Scottish regulator noted that “by the end of the compliance year, they [Wastepack] had not obtained enough PRNs/PERNs to meet their recovery and recycling obligations. Wastepack's recovery obligation was 415,000 tonnes, against which 180,000 tonnes of PRNs/PERNs were obtained.”
Commenting on this point, Valpak says that PRNs were available in the market and were not purchased, adding: “We note that SEPA has not imposed a sanction.”
Obligation
Valpak says that as a result it appears that the UK may fail to meet the targets required by the European Directive. “If so, the Wastepack shortfall of 240,000 tonnes, or 56% of its obligation would be the principal cause. Valpak agrees with Environment Minister, Michael Meacher, that Wastepack's non-compliance has resulted in a 'very, very serious shortfall' in meeting its packaging obligations and 'has let the whole side down'.”
Valpak also commented on the issue of expenditure and PRNs. It said: “We estimate that the saving to Wastepack from the PRNs not acquired would have been in excess of 5million.”
A spokesman for Wastepack said that the company had issued a response to the SEPA statement and was not commenting further at present. However, it is understood that Wastepack's view has long been that it has been carrying out investment in infrastructure to increase recycling and this cost can be seen as equating to expenditure on PRNs, so that it is not seeking any financial advantage from its approach to compliance.
System
Valpak chairman John Gummer MP, who is a former Secretary of State for the Environment, said: “The system of compliance through traded PRNs has ensured that UK business complies with rising European targets. The uncertainty caused by SEPA's decision has placed in serious doubt the UK’s ability to comply in the future. We share the Minister’s anger and await a quick response by DEFRA, SEPA and the EA to clarify and tighten the regulations.”
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