presentation - Repak

Repak Members Conference 2012
CEO Repak
1

Outline of Presentation
• Repak Results
• Repak Expenditure
• Services to members
• New challenges
• Outlook for Fees
2

Repak Results 2011
Reflect the continued lack of
growth in the economy
3

Repak membership – steady but
no growth
companies
4

Overall tonnes of packaging recovery
down from 2008 peak – but improving
5

Material Recovered – Growth in
Glass and Plastics
Material
Tonnes Recovered
2011
% change
2011 v 2010
Glass
Paper
Plastics
Metals
Wood
121,531 +14%
296,757 +3%
107,750 +21%
48,263 +8%
77,463 -20%
6

Paper / board and Glass approx twothirds
of materials recovered in 2011
Metal
7%
Wood
12%
Glass
19%
Plastic
17%
Paper
45%
7

Strong Growth in Plastic Recovery
8

Domestic tonnes still strong
9

Where the money is spent
10

Euro (millions)
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Repak Support for Packaging
Recycling; €230m in last 10 years
35.0
30.0
25.0
20.0
15.0
13.0
15.8
20.5
16.5
18.6
22.6
24.1
28.2 28.9 28.2
26.2
10.0
5.0
2.4
2.1
6.2
0.0

Direct Recycling costs
• Subsidy rates paid on equal basis to all
registered Recovery Operators for
materials collected and sent for recycling
• Varying payment levels
• Commercial
• Domestic (higher subsidy rates)
• Adjustment to subsidy rates in 2011
12

Subsidy paid to 150+ Recovery Operators
13

Domestic tonnes account for
greatest cost

Repak fees are considerably lower
than European norms (Indecon / Pro-Europe)
Comparison of Estimated Material Costs of Approved Packaging Schemes
in Ireland and Other EU Member States
Index of Estimated Cost per Product (Ireland =100)
Product Ireland EU Average % Difference
Drinks Bottle 0.5l (inc cap and plastic label), PET 100 180 80%
Drinks Can 0.33l, Aluminium 100 207 107%
Soup Can, Ferrous Metal and Paper 100 121 21%
Shopping Bag 45x50cm, Plastic (LDPE) 100 263 163%
Coffee Bag 1000g, composite 100 310 210%
Shower Gel Bottle 250ml, Plastic (HDPE) 100 293 193%
Cereal Box 375g, Paper and Plastic 100 229 129%
Pallets 6x1.5l, Shrink Foil (mineral water) 100 267 167%
Beer Bottle 0.33l, Glass, Ferrous Metal and Paper 100 181 81%
Diapers Bag 3-6kg, Plastic (LDPE) 100 327 227%
Beverage Carton 1l, composite (Tetra Pak) 100 513 413%
Detergent Bottle 500ml, Paper and Plastic (PET) 100 276 176%
Jam Jar 300g, glass, Ferrous Metal & Paper 100 184 84%
Cat Food Can 100g, Aluminium 100 259 159%
Average 100 258 158%
Source: Pro-Europe / Indecon

• Study by Bio Intelligence Services for EU in 2012
examined Packaging PRIs in EU
• Noted wide variation in fees charged
• Report sees Belgium (Fost Plus) as the “best in class”
• Note:
– Belgian PRI fees approx double current Repak fees;
– Belgian producers pay additional eco-taxes to
Belgian Govt

• Bio report also noted:
“Attempts were made to link the fees paid into producer
fee schemes with the packaging recovery/recycling
performance. However, no conclusive patterns were
observe. Some ‘cheap’ schemes demonstrate high levels
of recovery/recycling and some ‘expensive’ schemes
demonstrate low levels of recovery/recycling”
• Ireland very much in the „value-for-money‟ group

Ireland’s Packaging Recovery Rate
still growing – 7 th highest in EU
18

Repak Services
19

Repak – Serving our Members
• Repak On-Line Statistics (ROLS)
• On-line communications to members
• Repak Education Campaigns
• Schools Programmes
• Members Awards
• Prevent and Save– packaging prevention
20

Consumer Awareness
• Repak Easter appeal
• Repak Recycling Week (RRW)
• Repak Recycling Awards
• Repak Green Christmas
• Research on Packaging recycling behaviour
• Repak Recyclemore Website (www.recyclemore.ie)
– Online resource
– Mapped bring bank facilities
21

Repak Community and
Education Programs

Repak Member Interaction
• Repak On-Line Statistics (ROLS)
- additional features being added (online
historic data analysis)
• On-line communications to members
(newsletters / CEO to CEO / website)
• Members Awards
• Packaging prevention audits
23

Challenges
24

Enforcement of Packaging
Regulations
• New Packaging Regulations 2008 - de minimis
thresholds reduced to 10 tonnes
• Intention was to have more companies in and
paying – but growth in numbers very small
• Regulations not being enforced
• Compliant members carrying the burden
25

Review of Producer
Responsibility Model
• Consultants appointed and review underway
• Repak most successful PRI –other PRIs less so
• Packaging Tax still on the agenda
• New Waste Policy provides a strategy for
consultants to improve performance:
– Waste hierarchy (prevention and reuse)
– Higher targets?
– Greater enforcement (?)
26

Outlook for Fees 2013
27

Background
• Repak a not-for-profit organisation. Must
“break-even” one year with the next
• Required to meet Ireland‟s targets
• Continued pressure from Environment
Minister to increase recycling rates – and pay
more
• Repak fees frozen for 2009 - 2012 – means
ability to pay costs in future years severely
impaired
28

Fee increase - outlook
• Recycling volumes – more costly domestic
tonnes still strong
• Government challenges – higher targets / full
cost responsibility for producers
• Pressure on Repak fees
29

Fee increase - process
• Repak board – has conducted a full
review and examination of 2012 fees
• Negotiations with Minister
• Key stakeholders consulted
• Board decision to be announced
30

Thank you
31