Industry calls for review of ‘unfair’ PRN proposals

A Defra consultation on changes to the producer responsibility system for packaging recycling has proposed a 72% packaging recycling target for 2020.

However, PRN-obligated companies would have to up their recycling to 84% overall, with some materials such as paper, glass and steel being expected to reach 90% or more in the next 10 years.

Under current rules, only companies that produce more than 50 tonnes of packaging every year and have a turnover of more than £2m are required to buy PRNs.

Responses to the consultation have raised concerns over the size of the gap between targets for obligated companies and overall national targets, which differ by up to 20% for some materials, and called on the government to review how the gap could be closed.

They have also warned that PRN-obligated companies would bear the brunt of costs, estimated by Defra to be up to £160m per year, for developing the recycling infrastructure to handle the growth in recycling – while too much waste packaging from non-obligated companies would get a free ride in the PRN system.

Steve Gough, chief executive of compliance scheme Valpak, said that the proposals would lead to an “unacceptably large gap” between the amount of waste registered and paid for by PRNs and the total amount of waste packaging on the market. “This means costs to registered users are significantly higher than they need be,” he said.

Packaging Federation chief executive Dick Searle warned that high recycling targets could drive up PRN prices because sufficient recycling facilities were not in place.

“There is a real danger that a disproportionate share of the costs will fall on our industry,” he said.

Incpen director Jane Bicker-staffe said the government “should consider imposing a simple obligation” on small firms to help close the gap.

The proposals were laid out in a consultation, which closed at the end of May, over how to achieve the aims of the government’s Packaging Strategy.

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