BUDGET - The BPF response

The Government has ignored Plastic Industry advice and announced proposals in the Budget to increase plastic packaging recycling by 5% a year to reach a Business Target of 57% in 2017. Completely unrealistic.
 
"We are extremely disappointed that the Government has chosen to ignore our advice. We believe that whilst recycling is a priority we should not forget the implementation of other waste management techniques such as energy from waste. It is not just the industry that is saying this but also the consumer. A YouGov Survey conducted in March 2012 elicited strong support for a high level of plastics packaging recovery in its broadest sense. 74% respondents agreed with the proposition that plastics should not be buried in landfill and only 4% disagreed. This corresponds very closely with the objectives of Plastics 2020 which is seeking to divert all plastics packaging from landfill by 2020 through higher levels of recycling and energy from waste.
 
It is all very well to have an extremely ambitious recycling target but the infrastructure needs to be in place to deliver this. Again in the March YouGov Survey whilst a surprising number - 64% - said that they 'know how to recycle all my plastics waste' there were only 37% who felt that in their area 'there are not enough recycling facilities to dispose of plastics in. This indicates that whilst there is a level of interest and knowledge not enough people are able to put it into practice. Government should have realised this in its consideration of its proposed future packaging targets. We need a roadmap, which doesn't yet exist,to secure more standardisation of what is collected and a higher quality of sorted plastics.If there is an aspiration to recycle more then we need more plastics recycling capacity otherwise the waste will be dispatched abroad. Where is the investment actually going to come from to fill this gap?
 
The Government's arguments are based on questionable data. They predict growth in plastic packaging of 2.5% a year, way above any other material and widely ridiculed by our industry.
 
The Government have ignored their own expert committee the Advisory Committee on Packaging.
 
A 57% of plastic packaging recycling rate by 2017 will require a massive additional investment in recycling capacity.
 
The direct cost to plastics packaging producers and handlers would be a extra £70 million over five years.
 
Peter Davis said, "We fully support an increase in the plastic packaging recycling target but the Government's target is unrealistic and unachievable and the costs will drive packaging production and filling to other countries."
 
"The battle is not over and we will seek to change the Government's mind and remind the Chancellor that he is forgetting his pledge last November.At that time the Chancellor said: 'We shouldn't price British business out of the world economy. If we burden them with endless social and environmental goals - however worthy in their own right - then not only will we not achieve those goals, but the businesses will fail, jobs will be lost, and our country will be poorer (29th November 2011)' ''.
 
2. Taxation and Regulation

 
The BPF welcome the budget announcement that Corporation Tax will fall by 2% from 26% to 24% in April 2012.
 
Peter Davis said, "This is more than expected and is a welcome measure to improve on competitiveness."
 
The BPF is glad that the Chancellor is to Consult on simplifying the bureaucratic, costly and unnecessary Carbon Reduction Commitment but is concerned that they may replace it with yet another environmental tax.
 
Peter Davis said, "This is worrying since our Seven Associates letter to the Chancellor called quite clearly for CRC to be scrapped. Leaving just Climate Change Levy as the only business energy tax. We don't want another one."
 
The BPF is disappointed the Chancellor did not scrap the 3p increase in Fuel Duty due in August as requested by Seven Associations.
 
Peter Davis said, "This increases the business haulage costs at a time when fuel prices are rising but we are glad he has frozen Vehicle Exercise Duty for road haulage."
 
The BPF welcomes the sector-based review of regulations in the chemicals manufacturing sector commencing next month.
 
Peter Davis said, "Chemicals supply the plastics industry and we are anxious to see a reduction in bureaucracy and costs here."
 
3. Energy Planning and Infrastructure investment

 
The Chancellor announced that a strategy for gas fired electric cuts generation would be published in Autumn this year. The Seven Associations in their letter to the Chancellor had expressed concerns about future security of energy supply.
 
Peter Davis said, "By going for another "dash for gas" the Government is recognising that investments in nuclear and wind power are too slow to prevent the risk of power cuts. We wish he would have a dash for more Energy from Waste!"
 
The BPF welcomes the Budget's proposal to improve roads and rail infrastructure and we hope the National Planning Policy Framework to be published next week to better support growth and give support to our construction products members.
 
ENDS
 
For further information contact:
 
Philip Law
Public & Industrial Affairs Director
British Plastics Federation
 
Tel 0207 457 5011
Mobile: 07768 125290