The scheme confirmed this morning that the funds will be going to organisations to boost packaging recycling in the UK and that “neither Wastepack nor its members will benefit”.
A statement from the compliance scheme said: “Wastepack has made a provision of 2.3 million which represents the surplus arising from the group terminating its investment in direct recycling. Neither Wastepack nor its members will benefit. Wastepack intends to use this provision to pay the whole sum to third party organisations who will invest the money in packaging recycling projects.”
In 2001, the compliance scheme did not meet its full recovery obligation via the PRN route, and received a warning from SEPA in April 2002 over the matter. Wastepack had invested in some direct recycling projects including the famous 'pink bag' scheme, and had plans to build a materials reclamation facility.
Representatives of Wastepack assured the House of Lords in May 2002 that it would release details of the surplus of funds from its 2001 compliance plan. There has been some delay in releasing the money, however, while the scheme's accounts underwent an audit by PricewaterhouseCoopers.
Wastepack is expected to hold talks with four or five organisations covering different aspects of the recycling market and will distribute the funds to one or more of them. The compliance scheme has said that a public announcement will be made once the arrangements are complete.
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