Waste management

29 November 2002 by
Waste management

The problem

Due to a recent legal ruling, major hospitality businesses will now have to bear the costs of recycling the packaging on goods sold on their premises. Some companies have already received letters from the Environment Agency informing them of this change. So what's it all about?

The law

Until recently, the legal obligation to recycle packaging on goods sold by hospitality businesses has rested with the wholesalers or distributors of the goods. A change in the interpretation of the law means that hospitality businesses are now considered the "sellers" of this packaging rather than the "end users" and many will now have additional legal obligations.

The law applies to packaging on products passed on to customers, whether through direct sales (for example, beer bottles) or included as part of your overall service (for example, guest toiletries). Examples include:

\ Bottles of wine, beer, soft drinks and mixers.
* Packets of crisps, nuts and biscuits.
* Guest toiletries, such as soap and shampoo, and sewing kits.
* Catering portion packs, such as those containing butter, sauce, jam, coffee and milk.
\
Gifts and other products sold in associated shops, such as golf shops.

The law affects companies with an annual turnover of £2m or more which handle more than 50 tonnes of packaging per year. This will include many hotel, restaurant, pub and club chains in the UK.

If you are affected by the change in the ruling, you must:

* Register with the Environment Agency (or the appropriate regulator in Scotland or Northern Ireland) by 31 December 2002;
\ Measure the total amount of packaging handled by your business in 2002 and report this figure to the Environment Agency by 7 April 2003; and
\
Demonstrate that your obligated tonnage, a given percentage of the total, has been recovered or recycled (this percentage is set by the Government).

Expert advice

Check now whether you are obligated under the change in ruling. The more time you have to prepare, the better.

You do not have to recycle materials yourself but instead have to obtain Packaging Recovery Notes (PRNs) to cover your obligated tonnage. PRNs are issued by reprocessors accredited by the Environment Agency and represent material that has been recovered from the national waste stream.

PRNs are available on the open market, but many companies avoid the distraction of purchasing their own PRNs by joining a compliance scheme. Compliance schemes will purchase PRNs on your behalf, provide support and advice, and take care of registration with the Environment Agency.

However, you will still need to calculate the amount of packaging you handle. For a small number of products, this is relatively straightforward. Where there are many product lines and a large number of suppliers, the situation becomes more complex - many companies seek third-party assistance.

Compliance costs vary according to the amount and type of packaging handled, but for many they are likely to be significant. The main components are:

\ Environment Agency registration fees.
* Compliance scheme joining fee and annual membership fees.
* Purchase of PRNs.
\
Third-party assistance (as required).

PRNs vary in price but, taking account of current prices and recovery percentages set by the Government, 5,000 tonnes of glass bottles handled per year would cost roughly £42,500 in PRNs.

Check list

Check now whether the change in ruling affects your business, and take action as early as possible.
If obligated:

\ Register with the Environment Agency (SEPA in Scotland, or EHS in Northern Ireland) by 31 December 2002.
* Measure the total amount of packaging handled by your business in 2002.
* Report this figure to the Environment Agency or equivalent by 7 April 2003.
\
Ensure that you have purchased enough PRNs to cover your obligation.

Of course, a compliance scheme will take care of registration and obtain PRNs on your behalf.

Contacts

Jacqui Boardman, Acona
07973 157569

*\ Acona is holding two workshops on the new regulations, on 2 December in Bury, Greater Manchester, and on 4 December in London. Contact Simon Thresh on 01865 269804 for details.**

The Environment Agency
0845 933 3111

Beware

While the costs of compliance are significant, the consequences of not registering can also be great. Those who fail to register and fulfil their obligations for 2002 will be subject to enforcement action. Fines for non-compliance have been increasing, one of the most recent reaching £36,000. And, of course, no one wants to end up in court.

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