Speaking at the association's quarterly meeting in Birmingham on Tuesday, Geoff Hadfield said that the decrease in value of packaging waste recovery notes – the “currency” in which packaging producer responsibility funding is transferred to recyclers – to around 1 per tonne meant wood recyclers should focus on other revenue streams.
” PRN revenue isn't going to be there like it has been in the past – I can't see the value altering dramatically in the next 12 months or even two years. “
– Geoff Hadfield, WRA
The managing director of Manchester firm Hadfield Wood Recyclers said that, of the two main income streams, raising gate fees was the only option, since the board mills were increasingly paying less for woodchip in an attempt to become more competitive.
He said: “You have to ask yourselves whether PRN revenue is sustainable and where you can replace it from.
“PRN revenue isn't going to be there like it has been in the past – I can't see the value altering dramatically in the next 12 months or even two years. And I think you will be very lucky to get an increase from the panel board industry as they need to compete in a European market.”
Mr Hadfield added: “There must be companies finding it really hard and I think there's room for improvement at the front end by putting the gate fee up.”
The rising gate fees would be supported by the increasing Landfill Tax (see letsrecycle.com story), Mr Hadfield said, which would increase the demand for wood to be recycled rather than sent to landfill.
Code
Also speaking at the meeting, WRA secretary Rick Wilcox outlined work on a new Wood Recyclers' Code of Conduct, due to come online in 2008, saying it would help wood recyclers by raising the profile of accredited businesses.
He revealed that the Code was “85% there” after talks with the Waste and Resources Action Programme and board mills.
Mr Wilcox said: “The panel board federation seemed to accept the code as a principal. Now we need to establish the authority which will see if companies comply. We will set it up next year with a view to starting on 1st January 2008.”
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Mr Wilcox explained that the code of practice, which he said some companies would achieve very easily and others find more difficult, would cover standards of operational management and environmental health and safety planning- to show that companies were responsible and well organised.
Mr Hadfield gave his full support to the new code, saying: “I see the code as an endorsement of quality.”
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