Producer Responsibility Obligations (Packaging Waste) (Amendment) Regulations 2010

My Lords, these regulations set new recovery and recycling targets for packaging waste for 2011 and 2012. They will also improve transparency in the way in which the packaging recycling system is funded and will make a number of technical changes to improve the clarity of the regulations and reduce costs to business. First, it should be remembered that tackling waste is not just the responsibility of government; it is a responsibility for all of us, including businesses, private individuals and local authorities. It is for this reason that the Government are undertaking a review to look at all aspects of waste policy and delivery in England. The review’s main aim will be to ensure that together we are taking the right steps towards creating a zero-waste economy in which resources are fully valued and nothing of value gets thrown away. Last year, nearly 11 million tonnes of packaging were placed on the United Kingdom market with the products that it protects. About half this packaging is from household goods, and after use it accounts for about 20 per cent of household waste. The rest of the packaging is used and disposed of by businesses, and it accounts for about 10 per cent of commercial and industrial waste. The EU directive on packaging and packaging waste, which has been in place since 1994, requires member states to recover every year a minimum of 60 per cent of all packaging waste, of which 55 per cent must be recycled. Through the producer responsibility system that we have put in place in the UK and which is set out in these regulations, the UK achieved those targets in 2008 and 2009 and is on course to do so again in 2010. However, the current regulations set recycling targets for packaging producers in the UK only until the end of 2010. We therefore we need to put measures in place to ensure that the UK continues to meet the EU packaging recycling targets in future years, and so ensure that packaging waste continues to be recycled. If we do not, we can expect rather costly infraction proceedings. At the same time, we need to ensure that these targets are achieved at the lowest possible cost to businesses to support them in this challenging economic climate. The Government will set out our long-term approach to packaging as part of the waste review, to which I referred, which is due to be published next spring. In the mean time, the Government propose in these regulations to set packaging recycling targets for 2011 and 2012 only, and at a level that will ensure the delivery of the EU targets in the packaging directive but no more. Targets for 2013 and beyond will then be considered in light of findings of the review. The regulations also include provisions to improve the transparency of the funding associated with packaging waste recovery notes, PRNs, and packaging waste export recovery notes, PERNs—the evidence notes issued by reprocessors and exporters to show that recovery and recycling has taken place. Reprocessors and exporters will now be required to report on how they have spent the PRN revenue against new more defined categories. The new categories, developed with the industry, will provide a more accurate picture of how this funding is used to benefit the packaging recycling system as a whole. Finally, the regulations contain a number of minor technical changes. Most of them aim to clarify definitions, key dates for data returns and payment deadlines, and update references to legislation revised since 2007. Two changes are deregulatory. First, the amendment removes the requirement for reprocessors and exporters to have an independent audit, which can cost up to £10,000 for a large company. Secondly, it will allow a certain category of smaller businesses to use a simpler method to calculate their legal obligation, which will save time and effort. Benefits from these mean that as a whole, the proposed package of changes will reduce the net administrative burden placed on UK businesses by between £285,000 and £371,000 annually. In conclusion, I believe that the amendments that the Government are proposing to the packaging regulations will enable the UK to continue to meet its EU obligations, while minimising costs to UK businesses; will make the flow of producer funding more transparent for producers and local authorities; and will resolve a number of technical issues, which will overall reduce costs to business. I commend the regulations to the Committee. Sitting suspended for a Division in the House.