Environment and Food
Packaging Manufacturers: Extended Producer Responsibility
“I think it is infinitely more than disappointing, but I will follow the hon. Member’s parliamentary language: it is hugely frustrating. Colleagues here are raising the real, human costs of that. Something needs to change, and I do not want that change to be us losing our hospitality and renewable packaging industries. Hospitality businesses have faced similarly unfathomable logic from DEFRA. EPR fees are meant to offset the cost to local authorities of handling and recycling waste. Hospitality businesses’ waste is not collected through public collections, but through commercial waste removal contracts. Yet perversely, the annual burden to British pubs for EPR fees has been estimated by the British Beer and Pub Association to be £50 million. Hospitality businesses are, in effect, being told to pay for the same thing twice. DEFRA has long been aware of this anomaly—I thank the hon. Member for Woking (Mr Forster) for his debate on it—but nothing has been done to address it. Packaging EPR fees will disproportionately affect generic medicines, where high-volume, low-margin products risk becoming commercially unviable, increasing the likelihood of supply disruption, medicine withdrawal from the UK and higher costs to the NHS. Medicines manufacturers have minimal flexibility to redesign packaging, because primary packaging is tightly regulated by the Medicines and Healthcare products Regulatory Agency. The Government’s one-size-fits-all approach is revealed again when we consider social enterprises. The Minister will no doubt be familiar with Belu, which supplies water for parliamentary catering—indeed, Belu water bottles are in front of us on the Table right now. Belu donates 100% of its net profits to WaterAid, which supports clean water, sanitation and hygiene programmes around the world. However, while charities are rightly exempt from EPR fees, no such exemption exists for social enterprises, which are treated exactly the same as for-profit companies. The result for Belu is £1.1 million of EPR costs over the next two years—money that would otherwise be donated to WaterAid. The EPR system adds complexity and uncertainty for businesses. Baseline fees were not finalised until very shortly before liability for EPR was due to begin. Fee modulation remains unclear, and the system allows for retrospective fee calculation, potentially creating exposure to unplanned costs late in the financial cycle.”
