Select Committee on Environment, Food and Rural Affairs Appendices to the Minutes of Evidence


Memorandum submitted by PM Group plc

WEIGHING WASTE ON COLLECTION

1.  THE PM GROUP PLC

  PM On Board is part of the PM Group plc. The Group, founded in 1985, has established itself as the international market leader of on-board vehicle weighing systems and associated software for bulk haulage and waste management. PM produces 15 weighing systems for a variety of vehicles and applications covering two main areas—on-board vehicle management and waste management.

  PM Group is only one of a limited number of companies with Class Approval for its waste management products.

  The Company employs 76 staff in manufacturing and administration at its factory in Bradford's inner city, while nine others are employed at distribution centres near Paris and Ravels in Belgium.

  Wherever possible, PM utilises local manufacturing expertise for the brought-in units required for on-board weighing, thereby benefiting the local economy.

2.  LIST OF RECOMMENDATIONS AND CONCLUSIONS

    —  The status quo in waste management has failed. New techniques are needed if the UK is to meet its targets on waste reduction and recycling.

    —  Charging for waste by weight at the point of collection is the fairest and most efficient method for making people responsible for the waste they produce.

    —  The technology for the kerb side weighing of waste in the UK is already available, and set-up costs can be recouped in the medium-term.

    —  Businesses already pay directly for waste collection; charging by weight will provide incentives for waste reduction and prevent local authorities being landed with the costs of collecting the heaviest waste.

    —  Weighing systems allow households and businesses to effectively assess the economic implications of producing waste, ending the laissez-faire attitude to waste production.

    —  As well as reducing waste put out by households, charging by weight will eventually have an impact up the waste chain encouraging processors, manufacturers and retailers to reduce the amount of packaging that consumers have to pay to dispose of.

    —  Data collection involved with on board weighing systems will also bring benefits for the customer through an enhanced and more efficient service, while the cost of waste disposal and collection will decrease through less waste and more efficient management.

    —  Contrary to concerns of a "double tax" on households through variable charging, waste costs could fall with a weighing system in place, particularly for those who are conscientious in their waste management.

    —  Evaluation of weighing initiatives elsewhere demonstrate that fly tipping has not increased over the medium term. Other issues have also been successfully addressed.

    —  Kerb side weighing systems for waste management are already being used throughout Europe and elsewhere with significant benefits being achieved, both in the reduction of waste produced, and the percentage of waste recycled.

    —  The technology exists and is proven through operations—it is now a question of political will for the weighing of waste to be widely adopted in the UK.

3.  INNOVATIVE SOLUTIONS REQUIRED FOR WASTE MANAGEMENT PROBLEMS

  New ways must be found to encourage a reduction in the total output of waste in the UK. If recycling rates continue to increase at the same rate over the coming years, according to Friends of the Earth, Britain will come nowhere near European Union targets ensuring that two-thirds of waste is diverted from landfill by 2020. Currently, only 21% of municipal waste is recycled, composted or energy recovered, with 78% being disposed of by landfill in 2000-01—a decrease of 2% from the previous year.

  Given that individuals presently have little incentive to act responsibly in their production of waste, it is obvious that before any significant waste decreases occur in the UK, individuals will need to change their attitude towards waste management.

  The most effective way of enabling households and businesses to properly assess the implications of their waste is to directly charge them for their waste collection using a structured and accurate method of charging according to the amount and type of waste produced.

  Although there are several ways of directly charging for waste collection, by far the fairest means of doing so is through its weight. The most difficult waste to safely dispose of is generally the heaviest—industrial waste. Where charging is undertaken "per unit", households are penalised for the industrial waste that businesses produce—increasing costs for individuals and giving little incentive for businesses to manage their waste efficiently by cutting down and recycling.

  Weighing waste at the kerb side provides a direct incentive for people to reduce their waste and should encourage recycling through the application of differential charging or even a system of credits. Over the longer term, a weighing system should lead to a reduction in the overall quantity of waste produced, applying all the way up the refuse chain. Businesses and consumers will not take kindly to unnecessary packaging that they have to pay to dispose of. This will in time feed back to manufacturers who will seek to reduce the amount of potential waste as otherwise their goods will not be as attractive as others with less associated waste products. This fulfils the first stage in the waste hierarchy of reducing the actual amount of waste generated.

  The status quo in waste management has failed. New techniques are needed if the UK is to meet its targets on waste reduction and recycling.

  Charging for waste by weight at the point of collection is the fairest and most efficient method for making people responsible for the waste they produce.

4.  ON BOARD WASTE WEIGHING SYSTEMS

  Wheeled dustbins are equipped with a microchip with a unique identification number that enables information about it, including the owner's identity, address and their record of volumes collected to be brought up on a display in the collection vehicle when the bin is connected to the hoist. The chip is not affected by wet or dirty conditions, and it can be installed to existing and new equipment and computer networks. Indeed, since 1996 all European manufacturers have designed their wheeled bin containers to take this chip. To date, up to half a million chips have already been fitted or are currently being installed in the UK.

  The process of reading individual chips is completely automatic, meaning no operator input is needed. The bin is weighed as it is lifted with the waste and then on the descent without waste so that the net waste weight is registered.

  The vehicle stores the information and, after the collection round, it sends the information to a central computer. The central computer is able to analyse the gathered data and send individual invoices, weekly, monthly or quarterly, to the customer, who then pays according to the waste collected. This service is usually contracted out.

  The weighing systems have full weight and measures certification.

5.  THE COSTS OF WEIGHING

  Each bin chip costs around £1 to £3 while the fitting of the weighing equipment and IT support costs approximately £15,000 per vehicle. The equipment can be whole life leased over seven years, or from £10 per day.

  Other costs include account database modules to store and retrieve customer account details, bin database modules for bin allocation, route compilation and manager module for the creation and management of vehicle route information, and training for operators and drivers.

  It is predicted that investment costs for on-board weighing would likely be recouped after seven years.

  Financial assistance or encouragement linked to performance could be given to local authorities to fit weighing machines. In Belgium, Holland and Germany grants have been given to authorities by central government to help pay for the implementation of kerbside weighing and identification.

  The technology for the kerbside weighing of waste in the UK is already available, and set-up costs can be recouped in the medium-term.

6.  IMPACT OF WEIGHING ON COMMERCIAL WASTE

  For the collection of business waste, 50% of authorities have their own service, while in the other 50% collection is contracted out to a private company. There is no monopoly, businesses can arrange their own collection and, in addition to the large companies there are also smaller, specialised collectors.

  Presently, all local authorities and most private contractors charge a flat fee per bin or per business premise regardless of the weight of rubbish collected. This gives no incentive for businesses to recycle and reduce waste output. Furthermore, no records are kept of how much waste is produced by each business, making it difficult to effectively manage waste collection and dispersal.

  Some private companies are already beginning to adapt on-board weighing for their collection services, such as the Onyx fleet serving Westminster Council. As more of the larger private waste companies deploy on-board weighing machines, so businesses with large amounts of waste or those that have heavy waste such as machine parts or old engine blocks, will opt to use municipally provided services as the disposed waste is not charged by weight. This means that local councils end up disposing of the heaviest, bulkiest, and, therefore, most expensive waste.

  As businesses already pay directly for waste collection, to introduce a charge by weight system does not mean companies paying twice for collection. Instead, charges would relate directly to the weight of their waste rather than through a fixed payment, making the system much fairer for all concerned. To encourage recycling, wastage placed in recycling bins could be charged at a lower rate, or even be used as a credit against non-recyclable waste.

  Switching to an on-board weight based system ensures a more equitable distribution of the cost of waste collection and disposal. For example, in Blackpool, guest houses have not been charged differently from private residences for their waste collection despite the larger amount they inevitably produce. In future all households in Blackpool will be charged dependent upon the weight of their waste, so guest houses will pay their fair share so lifting some of the extra cost burden caused by tourists on residents who effectively subsidise guest houses at present.

  Certainly, charging companies for the weight of waste that they produce will cause the most significant contributors to waste production to take a serious look at reducing this burden. Although for most businesses waste will always be inevitable, making them directly accountable for the quantity and type of waste they produce should ensure they undertake all measures to cut back the quantity that needs to be disposed of.

  Businesses already pay directly for waste collection. Charging by weight will provide incentives for waste reduction and prevent local authorities being landed with the costs of collecting the heaviest waste.

7.  IMPACT ON RESIDENTIAL WASTE COLLECTION

  A recent survey, carried out by the Environment Agency, where 2,516 households were interviewed in England and Wales, found that 90% of those questioned would recycle more if it were made easier by their council—highlighting that the will is there for enhanced waste management.

  Given that the amount of waste produced will have a direct economic effect on households under a weighing system, there will be a direct incentive for householders to better manage their waste. If an incentive to recycle were introduced—such as "zero" weighting or even a rebate on charges for recyclables, with councils further aiding individuals with kerbside collections, this would have a significant impact on the production of waste in households and how much of that waste is re-used for environmental benefit.

  Kerbside recycled collection schemes are already available for 51% of households in England and Wales, but many are limited to paper and bottle only. With no economic incentives to recycle, take-up of such services, although improving, is limited, with only the environmentally aware likely to take the time to pick out waste that can be re-used.

  Further to direct recycling through kerbside collections, if consumers have to pay directly by weight for waste collection, they will wish to see more lightweight, recyclable materials for packaging goods and may even discriminate in favour of these when making purchasing decisions. Therefore, producers will act to reduce waste for the consumer, with the environment benefiting from the knock-on effect.

  Weighing systems allow households and businesses to effectively assess the economic implications of producing waste, ending the laissez-faire attitude to waste production.

  As well as reducing waste put out by households, charging by weight will eventually have an impact up the waste chain encouraging processors, manufacturers and retailers to reduce the amount of packaging that consumers will have to pay to dispose of.

8.  IMPROVING EFFICIENCY AND CUSTOMER SERVICE

  A further advantage of on-board weighing of waste for collection is the efficiency gains that can be achieved through its use. Detailed analysis of the data can be utilised to plan collection routes and to assess present and future waste management strategies.

  Currently vehicles only know how much waste they are carrying when they are weighed at the disposal point. With on-board weighing systems, vehicle operators are able to measure the weight of waste being collected, carried and delivered by their vehicles so that the vehicles are consistently loaded to the permitted maximum without being overloaded or, indeed, being underused.

  If it is found that any bins had been missed from a collection point, the information collected enables the waste to be collected from the nearest collection point the next day, negating the need for individuals to have to complain before action is taken. This reassures the public and leads to fewer complaints through enhanced services.

  As the system can identify and monitor recycled materials and show seasonal changes in waste disposal, customers are able to be advised on the best methods for managing waste, increasing recycling and cutting down on their waste disposal.

  Furthermore, a bin that is regularly overloaded or, in the case of a recycled rubbish bin, contaminated, can be detected and the householder given a call to enquire, and eventually warn them, about this situation, with advice on how to cut down on wastage and recycling tips.

  Together, these efficiency gains and incentives to recycle will lower both the cost to the authority of waste management and also to the economically and socially aware individual. Only those who fail to manage their waste are likely to see any extra cost accrue.

  Data collection involved with on board weighing systems will also bring benefits for the customer through an enhanced and more efficient service, while the cost of waste disposal and collection will decrease through less waste and more efficient management.

  Contrary to concerns of a "double tax" on households through variable charging, waste costs could fall with a weighing system in place, particularly for those who are conscientious in their waste management.

9.  ADDRESSING CONCERNS

  Although increased fly tipping has been raised as an inevitable by-product of introducing any form of weight based charging system, the evidence from Europe suggests that, if on-board weighing systems are put in place, fly tipping is not likely to rise significantly in the medium term. Many of the weighing schemes highlighted below reported an increase in fly tipping in the short-term but, after a year, when the schemes were bedded down and individuals had become used to the options available to them, tipping normalised.

  For example, when charges for waste were introduced in Ghent, Belgium, initial concerns were that it would lead to fly tipping in the city. This fear proved unfounded as although there was an initial 5% increase in fly tipping, after four years this had now started to fall. Strict police regulations have been utilised to bring individuals to justice who flout fly tipping laws, while the availability of "bring sites" also helped to reduce the amount of illegal tipping.

  Through education the cost of fly tipping should be made known. Most individuals wishing to fly tip will have to transfer the waste to its destination with the aid of private transport, most likely a car. Running costs mean that, in most circumstances, the bill for tipping will exceed charges for the waste being legally collected.

  A further concern regarding charging for waste is that unscrupulous individuals may seek to transfer their refuse to other households in order to reduce or avoid payments. Although there is always a possibility of this occurring, if complaints are made about waste transfer, long-term data capture can analyse the likelihood of any transfer, and who might be responsible, through looking at neighbouring households with frequent over-loaded bins. Bin locks could also be introduced in order to stop this taking place.

  Given that households will wish to reduce their payments associated with waste production, individuals with the capability may decide to dispose of their waste at refuse tips. To counter this, it may be appropriate for changes to be levied at tips unless it is recyclable.

  Multi occupancy units and community bins are dealt with through share initiatives, where waste charges are calculated by weight and shared by various calculated methods between the occupants and invoiced individually or as a management charge.

  Evaluation of weighing initiatives elsewhere demonstrates that fly tipping has not increased over the medium term. Other issues have also been successfully addressed.

10.  CASE STUDIES

  It is likely that on-board weighing will become the norm in Europe, for both residential and industrial waste.

  Systems for weighing household waste at the point of collection have been in use on the Continent for more than a decade, with several European cities operating types of charge-by-weight systems. To date, in Germany alone more than 1,300 vehicles have been equipped with weighing systems and more than six million chips fitted to containers. France, Italy, Spain, Belgium, Holland and other western European countries have also adopted the technology for both domestic and industrial waste.

  Koerich and Kopstal in Luxembourg had collection times reduced by 30% over two years, with the amount of waste being reduced by 52% and 47% respectively due to improved accuracy in the information collated.

  Garmisch-Partenkirchen in Germany has seen waste disposal amounts reduce by 40% from 1995, while recycling has increased by 90%. In Lebach, Germany, collection costs for MSW have been reduced by a third.

  These cases suggest that more recycling took place after the introduction of on-board weighing than before and that consumer behaviour changed dramatically towards home composting and waste reduction.

  In Australia the amount of household waste recycled was negligible until the 1990s, when kerbside recycling collections were introduced. Within eight years, 59% of waste was being recycled. A similar figure for recycling was found after Flanders, Belgium started a kerbside collection. In seven years, recycling went from 18% to 59%.

  One authority almost ready to introduce a charge-by-weight scheme for household collections using the on-board system is Dublin based Dun Laoghaire-Rathdown County Council. The move from bags to wheeled bins, with the aim of eventually introducing a charge-by-weight billing system, produced significant cost savings in itself. According to the council's waste management section the system will:

    ". . .prove useful as a management tool to organise refuse collection in a more efficient manner and to keep an eye on costs. The radio link will enable us to monitor what is happening. If a route proves to be light and the crew finishes early on a regular basis we'll know about it and be able to redistribute the workload."

  The number of routes necessary to serve its 65,000 households have to date been cut by almost a half, from 20 to 11, while manning levels have been reduced from five to three men per vehicle. Furthermore, routes have been designed to allow approximately 1,200 bins to be handled daily, equivalent to almost doubling the number of bags and bins moved before waste weigh was introduced.

  The other key advantage of waste weighing highlighted by this case has been that it is "fairer than the present method where a fixed charge is levied. This will mean an elderly couple with minimal waste will not have to pay as much as a large family."

  Kerb side weighing systems for waste management are already being used throughout Europe and elsewhere with significant benefits being achieved, both in the reduction of waste produced, and the percentage of waste recycled.

11.  CONCLUSION

  Without incentives for individuals, although marginal improvements may occur, there will not be the sea change in attitudes or action over waste management that is required to meet targets over the medium and long-term. The "polluter pays" principle for waste collection and disposal would seem a logical step.

  In other countries, weighing individual bins has been able to achieve a substantial cost saving as well as the reduction in waste disposal that the UK requires. Given this evidence, there is no reason to believe that similar waste management projects in the UK will be any less successful.

  The technology exists and is proven through operations—it is now a question of political will for the weighing of waste to be widely adopted.

PM Group plc

16 December 2002


 
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