Defra’s new proposals have been criticised as not being enough to properly address soaring recycling costs, after the government department published plans to reform the controversial Packaging Recovery Notes (PRN) system.
Industry bodies have been calling for action to tackle price volatility and a lack of transparency within the recycling system, which requires suppliers to pay compliance schemes.
Following the launch of a consultation in March, Defra has now set out plans including requiring reprocessors and exporters to publish monthly data on PRN prices and export figures, rather than quarterly.
Suppliers said the moves from the government department for environment, food and rural affairs fell well short of the fundamental shake-up the system needed.
There are continuing accusations that sellers have deliberately restricted market supply in order to artificially deflate supply and drive-up PRN prices.
“Producers, UK reprocessors and exporters are incentivised to game the system to achieve the price they want, rather than work together to build long-term, strategic partnerships that increase the amount of material recycled,” said Ecosurety innovation and policy director Robbie Staniforth.
“The government’s review was an opportunity to significantly update the system to make it fit for the present world. The minor amendments taken forward go nowhere near far enough towards fixing the issues.”
BBPA CEO Emma McClarkin also offered her thoughts: “We welcome the decisions within today’s PRN consultation response to introduce monthly reporting of reprocessing and export data.
“However, it is disappointing that the government has decided not to bring in a mechanism for extending the compliance period for the trading of PRNs which has previously proved valuable in helping to smooth PRN prices or introduce a compliance fee at this stage.
“Additionally, today’s government response does nothing to address spiralling costs producers will continue to face this year and into 2023.
“Urgent action remains necessary to alleviate the immense pressures the current volatile PRN market is placing on producers.”
The news comes as Defra has enforced a bird housing order in England as more than a third of all free-range Christmas turkeys have died following the UK’s worst-ever outbreak of avian flu.
