Packaging compliance schemes have claimed that challenges involved in implementing a compliance fee mechanism in 2019 to address high PRN prices can be overcome.
The comments come after the government’s Advisory Committee on Packaging (ACP) said that introduction of a backstop measure for packaging compliance looks unlikely in 2019, but could be possible for 2020.
High prices for Plastic PRNs in particular has led to calls for changes to the system
ACP met late last week amid strong sector concerns that the PRN price, in particular for plastics, looked to be spiralling out of control to an ever-higher price.
Following the meeting, ACP said that it expects the market for plastic PRNs to ease in the coming months, but said it would urge Defra to give “strong consideration to a mechanism that should restrict excessive pricing” which could include a potential compliance fee (see letsrecycle.com story). However, no immediate action from government on this is expected.
In response to this, the Packaging Schemes Forum, which represents packaging compliance schemes in the UK said it was pleased to hear the challenges have been noted, but said that amendments to the current packaging regime are required ‘as quickly as possible’.
“It is pleasing to hear that the ACP recognises the challenges posed by increasing recycling targets over the next period, even though the current recycling situation is much better than some believed,” the Forum said in a statement.
It added: “It is vital that amendments are made to improve the system as quickly as possible. The fact that the ACP still believe market manipulation may be occurring is deeply concerning, given it was highlighted to the CMA some time ago. Now the government must act urgently to make the technical changes required to get the best outcomes from the system up until 2023.”
Compliance fee
The forum called for changes to be introduced quickly
A compliance fee is among the options favoured by many to act as a protection against spiralling PRN prices. In summary, this would be paid per tonne of material if a compliance scheme is short of its target for the year.
The assumption would be that the fee would be calculated at a more “reasonable level” than the high price of a PRN. A compliance fee is in operation in the WEEE sector.
The Forum’s statement added: “A compliance option in lieu of any target shortfall is essential to ensure the proper functioning of the system. The legislative process indeed presents a challenge; however, we believe the problems of introducing a mechanism, such as a compliance fee, in the middle of the year are surmountable.”
The PSF says it represents 93% of registered producers and 97% of producers registered with compliance schemes across a range of industry groups.
The post Packaging Forum urges speedy action over PRNs appeared first on letsrecycle.com.
Source: letsrecycle.com Plastic
