The Confederation of Paper Industries says that for three years it has monitored apparent data gaps between PRN/PERNs declared through the Producer Responsibility Obligations (Packaging Waste) Regulations 1997 (as amended), and that perceived to be available through CPI Mill returns and HM Revenue and Customs export data.
The CPI says it has consistently identified significant over-declarations within the export side of the system, and has “serious concerns regarding the future of the paper PRN/PERN market and the impact of the discrepancies on legitimate reprocessors and exporters”. The organization has raised its concerns with both Defra and the Environment Agency throughout this period.
“In 2005, the apparent declaration of exported UK paper packaging waste appeared to be in excess of 200,000t (22 per cent) above the calculated availability,” the CPI states. “With the huge growth in the export of UK paper packaging waste to Far East markets, and declining UK domestic demand, any variance in the export system has a growing impact on the overall producer responsibility system for paper packaging. Any declarations against non UK paper packaging drives down the PRN/PERN value to the disadvantage of legitimate domestic reprocessors and exporters.
“CPI awaits the findings of the Defra investigation into the paper packaging sector announced in June 2005. The excessive time delay of this investigation leads CPI to reluctantly conclude that government is showing little resolve in tackling the problems.”
Peter Seggie, CPI’s recovered paper sector manager, adds: “CPI has been aware of the apparent discrepancies of declaration data against available data for a number of years and has asked Defra to look at the situation in detail for the sake of reprocessors and exporters within the system; and to ensure a sustainable future market for paper PRNs and PERNs. Depending on which data set you look at, the UK is now dependent on export reprocessors for between 37 and 42 per cent of its packaging waste obligation and this is rising continually. Quarter 4 of 2005 suggests the reliance on export markets is now between 41 and 47 per cent.
“We await the findings of the paper packaging fact finding mission with interest,” he concludes.
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