WRAP – the Waste and Resources Action Programme – had originally pledged up to 23 million towards the provision of new deinking and newsprint recycling facilities at the UPM-Kymmene-owned Shotton newsprint mill in North Wales.
It chose Shotton for the funding in January 2002 after initially favouring Aylesford Newsprint. The European Commission stepped in as it considered the grant could be contrary to state aid funding rules for industry and its competition unit is currently examining the whole situation. Until approval comes from the Commission, no funds can be handed over.
Pledges
The 23 million was to be channelled through WRAP’s own Landfill Tax Credit Scheme (LTCS)-supported environmental body known as WREB. Jennie Price, WRAP chief executive, had originally set the ball rolling by personally winning pledges in 2001 for large sums of funding from waste management companies, most totalling 3 million per allocation. The money was to come from Landfill Tax funding set aside by the companies through their environmental bodies.
Separately, funding of 10% support of the total money from the bodies in line with LTCS rules, is coming from the Welsh Assembly, although the precise figure has not been revealed.
Shortfall
The current cash shortfall is believed to have occurred because unidentified donor environmental bodies giving sums towards the 23 million are not able to come up with the money. This is because they had not secured all or part of the funding from within their own Landfill Tax credits ahead of the government’s decision to end the LTCS for waste and recycling projects. Most waste management companies contacted by letsrecycle.com confirmed that there were no problems with their commitments and the money had been put aside. But there are thought to be several which may not have managed this to the surprise of some people within the recycling and waste sector.
John Leaver, head of SITA’s environmental trust and vice chairman of the Association of Distributive Environmental Bodies, typified the views of most environmental bodies. He said: “We have reserved funds which are waiting to be passed to WREB. We are continuing in good faith with the this project.”
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