Select Committee on Environment, Transport and Regional Affairs Memoranda


MEMORANDUM BY THE ROAD HAULAGE ASSOCIATION (DSW 27)

1.  INTRODUCTION

  1.1  The Road Haulage Association (RHA) was formed in 1945 to look after the interests of haulage contractors in various areas of the country, in effect, amalgamating local organisations that had been established. The association has subsequently developed to become the primary trade association representing the hire-or-reward sector of the road transport industry. There are now some 10,000 companies in membership varying from major companies with over 5,000 vehicles down to owner-drivers.

  Many of the owner-drivers, as well as larger member companies, are involved in waste in some form, particularly with regard to tipper operations, transfer stations, recycling centres and inert landfill sites. Within the RHA there is a Waste Group which represents approximately 900 member companies, a number of who have contributed to the enclosed submission.

2.  COMMENT

  2.1  The Waste Strategy 2000 is a bold attempt to change the way we manage waste. We agree that waste must be put to better use, however a waste strategy should include all wastes. An effective national waste strategy which excludes 40 per cent of waste generated cannot be an effective strategy.

  The RHA therefore considers that the final strategy should include:

    —  Mines and Quarries waste

    —  Waste from Agriculture

    —  Water Industry—Sewage Sludges

  2.2  The national waste strategy must have Environmental Protection and Enhancement as the main priority, therefore the cornerstone to the strategy must be Best Practical Environmental Option (BPEO). It is the lack of imaginative long-term view that is currently missing. There is no effort or incentive to produce a limited type of packaging and materials which end up as a wide variety of waste material. With a limited range of consistent higher volume material, reuse and recycling would be simpler and more economic.

  2.3  We are broadly in agreement with the policies and objectives of the Waste Strategy. But we have reservations concerning its focus on the recycling role of local authorities. Whilst this is important, even more important is the need to foster a consumer climate that demands waste reduction and supports a buoyant market for reusables and recyclables. Without this we fear that the considerable resources being made available to support the Strategy will be wasted.

  2.4  Our memorandum addresses this issue of focus first and then provides comment on the specific areas the Sub-committee has identified as being of interest to it.

3.  FOCUS OF THE STRATEGY

  3.1  The RHA agrees with the need to reduce waste and increase re-use and recycling. We also accept that our current dependence on landfill needs to be reduced, although we equally acknowledge that landfill will continue to underpin our waste management system for many years yet and that in some more rural areas may well remain BPEO.

  3.2  The overarching objective of the Strategy must therefore be to facilitate a sustainable market for waste materials. We have concerns that the Strategy's emphasis on targets and goals for local authorities is somewhat adrift from this. We recognise that the public sector is one area Government can directly control, given that waste management in England and Wales is exclusively a private sector operation. Nor do we seek to denigrate the crucial role the public sector has to play if the Strategy is to succeed. But in terms of sustainable waste management the principal role of the public sector, like that of the waste management industry, is to be a facilitator. It is the consumer who is able to ensure that waste reduction and waste reuse and recycling on the scale envisaged by the strategy will take place sustainably.

  3.3  We remind the Sub-committee of the recent experience of Germany where local authorities, aided by the private sector, worked with Government to recover and recycle wastes in advance of a sustainable market for these materials being developed. The end result, after considerable expenditure, was warehouses full of unwanted materials which are now being dumped in landfills throughout Europe. Closer to home the Sub-committee will recognise the failure of the glass and paper recycling to establish sustainable markets through oversupply and the supply of inappropriate materials.

  3.4  Encouraging greater local authority participation in recycling is important. But it must take place at a pace and scale comparable to the development of sustainable markets for recyclables. Local authorities cannot, in themselves, create such markets. They can only facilitate their development.

4.  EFFICIENT USE OF RESOURCES AND REDUCTION OF WASTES

  4.1  The Waste Strategy proposes four broad policy instruments as the key to delivering its goals. These are the Waste and Resources Action Programme; the waste minimisation requirements of Integrated Pollution Prevention and Control Regime (IPPC); the Landfill Tax escalator (see 7 below); and limiting landfilling of waste by use of tradable permits (see 5 below).

  4.2  The Waste and Resources Action Programme (WRAP) has the following functions:

    (i)  market facilitation including identification of new uses and applications for recyclate: development of waste exchanges: removals of institutional barriers: and improving consumer awareness;

    (ii)  promotion of investment in recycling;

    (iii)  research management;

    (iv)  information management—building on the Waste Management Information Bureau; and

    (v)  advice, guidance and technical support.

  It will have a budget of £25 million over three years from DETR and an as yet undisclosed sum from DTI.

  4.3  We contend that this remit it too wide, and consequently inadequately funded, for WRAP to have any chance of making a far reaching contribution to sustainable waste management. Far better if WRAP's remit was focused on raising consumer awareness and inculcating a culture of waste minimisation and reuse/recycling. In that way, working with all sectors, it could act as a catalyst for new markets for waste materials.

  4.4  To achieve this the work of WRAP will need to be supported by other measures. The RHA recognises the crucial roles Producer Responsibility Initiatives and public sector purchasing policies have to play. These have to take place along with recycling initiatives as part of developing the market for waste materials.

  4.5  Turning to IPPC and waste minimisation. If plant and processes are, as they should under IPC, conforming to the Best Practicable Environmental Option and employing Best Available Techniques then it is difficult to see what further scope remains for waste minimisation. Such waste minimisation is more likely to occur as new markets call for new processes and plant.

  4.6  We do however, via IPPC, see how the EA can suggest changes to techniques in order to facilitate additional or the introduction of recyclates into the relevant process. Something which is not necessarily identified within the role of the EA.

5.  MEASURES TO INCREASE RECYCLING

  5.1  Provided it is in parallel with the development of a sustainable market for waste materials, the RHA supports the challenging targets set for local authority waste recycling. But it is important that the enthusiasm (or coercion through statutory performance indicators) to meet these targets does not run too far in front of the emerging markets for waste materials. Otherwise we will repeat on a much larger scale the already unfortunate experience of paper recycling where oversupply has almost decimated the market.

  5.2  The RHA is drawn to the conclusion that the introduction of tradable permits owes more to Government's obligations under the EU Landfill Directive than it does to any clear appreciation of how a sustainable market for waste materials is to develop. In this context we equally regard the Landfill Tax Credit Scheme as a blunt instrument in promoting sustainable waste recycling.

  5.3  We however, as noted above, agree with Government that public procurement and producer responsibility initiatives have key roles to play in promoting increased use of recycled materials. It is in this area where the waste strategy is weak. Where are the incentives to produce materials which are easy to recycle on a consistent basis?

  We need to start at the beginning if we are to influence the end.

6.  INCREASED USE OF INCINERATION

  6.1  There is no doubt that the recovery of energy from waste has a significant role to play in delivering the Waste Strategy. But we signal our reservations as to how energy-from-waste is being developed in England and Wales.

  6.2  We consider the current average size of energy-from-waste plants as inimical to both waste reduction and to the development of a sustainable market for recyclables. Plants of a throughput of 200,000 tonnes per annum or above require long-term contracts guaranteeing the calorific value of waste if they are to be economic at current waste disposal prices. As such they limit, and possibly preclude, the development of alternatives, particularly when new opportunities appear.

  6.3  To meet the objectives of the Waste Strategy more, smaller sized, energy-from-waste plants, based on serving local communities or neighbourhoods, are required. Plants of 50,000 tonnes per annum are less likely to suppress other initiatives and be more acceptable publicly.

  6.4  Under the climate change programme there has been identified additional financial incentives in the development of CHP facilities. It would be of significant advantage if similar measures were available for both recycling and waste to energy developments.

  6.5  It is recognised that larger waste to energy plants are required if they are to be economic, however de-rated and accelerated capital allowance would allow smaller more publicly acceptable plants to be developed.

7.  LANDFILL TAX

  7.1  Our experience is that landfill tax has not reduced the amount of waste being landfilled. (An exception is "inert" wastes which are increasingly being dealt with in ways which, if they meet the letter of waste management licensing, pay little regard to its spirit). This is unsurprising given the lack of alternative markets for waste and the relative insignificance of waste management costs to both the public and private sectors. We conclude that landfill tax has a limited role to play in delivering the Waste Strategy.

  7.2  Whilst acknowledging the many benefits flowing from the Landfill Tax Credit Scheme, we do not regard this as an appropriate means of funding reuse and recycling schemes. As a source of funds it is uncertain, and anyways as landfilling diminishes substantially, as the Waste Strategy envisages, so too will the funds available.

  7.3  However, the Landfill Tax flow into the treasury could be utilised to fund accelerated capital allowances.

8.  HAZARDOUS WASTE

  8.1  It is the EU Landfill Directive, not the Waste Strategy, that is the driver for change in the management of hazardous waste in England and Wales. The almost overwhelming disincentives to develop, as is required, brand new landfills for hazardous waste, plus the costs of providing alternative technologies and facilities in an uncertain market, will inevitably see the management of most hazardous waste move from the waste management industry back to the waste producer. Whilst this may prove a welcome incentive for the reduction in volumes of hazardous waste produced, it is unclear if it will lead to their better management.

  8.2  The slow progress on consultation on the Transposition of the EU Landfill Directive is of particular concern to the industry at this time.

9.  PUBLIC AWARENESS

  9.1  Central to our submission to the Sub-committee is our conviction that only through increased consumer awareness, and from that the exercise of demand and choice, will the objectives of the Strategy be realised. We reiterate our view that local authorities and the waste management industry can be no more than facilitators. Demand is from the consumer and the Strategy will be realised by industry responding to this demand. Supply-side management will not deliver the Waste Strategy.

  9.2  The RHA sees Education as one of the key challenges effecting the national waste strategy. The will of the people for more recycling is evident, however public acceptability for more waste treatment facilities and increased recyclate in consumer goods is not yet evident.

  "Education" is therefore a pre-requisite to a successful strategy including a full understanding of BEPO, and the need to influence all procurement practices.

10.  CONCLUSIONS

  10.1  The RHA welcomes this enquiry into the hugely important Waste Strategy and the opportunity afforded to us to give our views.

  10.2  The Waste Strategy is both a necessary and bold leap forward for waste management in England and Wales. We endorse its vision and support many of its policies. We however believe that more emphasis should be given to the role the consumer must play if a sustainable market is to be developed. In this regard the public sector is, of course, a consumer. We contend that too much emphasis is placed on forcing local authorities to recycle, and invest in recycling, without any clear appreciation of what will happen to the recyclate.

  10.3  We remain concerned that there is no overall "environment" policy as we have particular limited areas:

    —  Waste Strategy

    —  Landfill Tax

    —  Climate Levy/Energy Tax

    —  Aggregate Tax

  It is clear that an energy tax on electricity consumed will impact negatively on the economics of recycling.

  10.4  The RHA would welcome an all encompassing national waste strategy with a priority of Environmental Protection and Enhancement the cornerstone of which is Best Practical Environmental Option.

  The main challenges for an economic effective national strategy are:

  Education

    —  promote responsible attitudes and awareness of waste and environmental impact.

  Planning

    —  provide an efficient system recognising regional influence without compromising proximity principles

  Economics

    —  finding the right balance of fiscal measures to sustainable development which are not disjointed by other narrow-minded initiatives.

September 2000


 
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