Agenda item

To brief Members in relation to the emerging detail from the Environment Act 2021, as it relates to waste management.

The Board received a report briefing Members in relation to the emerging detail from the Environment Act 2021, as it related to waste management.

There had been two rounds of public consultations (2020 and 2021), in which

Government sought input on how the three main limbs of the strategy (Extended

Producer Responsibility (EPR), Deposit Return Scheme (DRS). The consultation documents had been released on these two areas, but the documents on Waste

Collection Consistency were still awaiting release.

Extended Producer Responsibility – The Government wishes producers of packaging to pay the full net cost of collection andtreatment associated with the packaging placed into circulation. This is to encouragebetter overall design of packaging.Under EPR, producers will pay modulated fees, set according to the assessedenvironmental impact and/or treatment cost of the packaging they put into circulation. Councils would be assessed according to the relative ‘Efficiency’ and ‘Effectiveness’ of their service. Councils would be placed within a performance cohort, wherein their costs and their performance will be benchmarked against a ‘best in class’ council. Cohorts would be drawn from councils that shared some similarities.

Individual councils deemed to be sub-optimally ‘efficient’ and/or ‘effective’ may be presented with an Improvement Notice. When an Improvement Notice is issued, it would also identify future year funding reductions.

Deposit Return Scheme (DRS) - A deposit, an additional sum on top of the normal sale price, would be added to in-scope packaging, at the point of sale. It was noted that these were drink containers, bottles and cans specifically, but not all bottles and cans! The deposit would most likely be a sum such as 20p per item which was a sum that had been widely referred-to throughout the consultations. This would apply to both single and multi-pack items.

Waste Collection Consistency – Even though the report was yet to be published, it was already known that Councils would be mandated to collect newspapers and magazines, cardboard, glass bottles, plastic bottles, plastic pots/tubs/trays and steel and aluminium cans or tins. Plastic film, aerosols, cartons and foil would be added to the list of mandated materials, most likely in 2027.

Glass collection and plastic film collection and processing would need to be added to

re3’s current services to achieve compliance.

It was important to note some of the potential outputs and issues that could arise. It was likely that there could be a financial squeeze from producers. The elderly and disabled hadn’t been factored into DEFRAs impact assessment, which was still an issue. The cost of living was a big factor, for example the three SNP candidates had recently stated that they would pause their DRS, which was ahead of the one in England, due to the cost issues involved. There were repercussive contract costs as there were certain things within the contract that may need to be changed due to the change in legislation. There was also the issue of possible changes in packaging changes and packaging being phased out which could affect what was contracted to be collected which may complicate things.

Arising from the Members comments and questions, the following points were made:

·       Detailed clarity was still being awaited for glass collection. It was unsure when this would be announced, or what the precise requirements would be.

·       There would be some support financially provided by the Government, this would be based again on cohorts and a formula.

·       Re3 Councils could be based in different cohorts.

·       The formula would be based on conditions that took into account demographics.

·       The effective and efficiency calculation would drive down costs.

·       It was felt best in class could be cause negativity and was a negative approach. It was suggested that a letter be drafted to DEFRA from the Board in regards to this.

RESOLVED thatMembers note the contents of the report.