Memorandum submitted by Shanks Group plc
1. COMPANY PROFILE
1.1 Shanks Group plc is one of the UK's
largest waste management companies and, with its operations in
Belgium and The Netherlands, is also a leading independent player
in the European market. Beyond Europe, Shanks also has activities
through its environmental remediation services. As a Group, Shanks
employs over 4,600 people, based at more than 120 sites and involved
in 200 operations.
1.2 The Group provides an extensive range
of waste management services and handles a wide variety of wastes,
including domestic refuse, commercial waste, contaminated spoils
and hazardous waste. Operations range from collections, domestic
and commercial waste recycling, thermal treatment systems, industrial
cleaning and special waste treatment, to high temperature incineration
and modern landfill. Shanks is one of the largest generators of
electricity from landfill gas and produces a range of fuel-from-waste
products.
2. INTRODUCTION
2.1 Shanks is a leading member of the Environmental
Services Association (ESA) and endorses the submission to the
Committee of the trade body for the UK's waste management industry,
which has an annual turnover of more than £5 billion. However,
as a company which also has direct operational experience elsewhere
within Europe, we wish to further assist the Committee by way
of this brief summary of what we believe are the key factors which
are central to the future of waste management.
3. KEY FACTORS
(WHAT MUST
BE DONE)
3.1 The use of clear and consistent regulation
and appropriate fiscal measures (tax) have been at the core of
"success" elsewhere. A mixture of regulatory instruments
(eg landfill bans) and financial incentives (eg an early, high
rate landfill tax) will inevitably be required to make real and
timely changes here in the UK.
3.2 In simple terms, regulation can be regarded
as the most appropriate mechanism to drive change in the management
of "higher-disposal-cost" (hazardous) waste. In particular,
hazardous waste should be treated to Final Storage Quality (FSQ),
ie non-reactive, prior to landfill disposal post the cessation
of co-disposal in July 2004.
3.3 A fiscal approach may be seen as the
most appropriate driver in relation to "lower-disposal-cost"
(MSW) waste, where ultimate higher tax levels proposed in the
Strategy Unit Report should encourage recycling and achieve the
landfill diversion targets set out in the Landfill Directive.
3.4 At the same time there must be a commitment
to strong and uniform enforcement as part of the regulatory regime.
3.5 Clarification and agreement is also
required regarding aims and success criteria, particularly in
the case of local authorities. Councils need to be given clear
direction for waste management services purchasing decisions.
Any move away from landfill will inevitably incur higher costs.
3.6 Inadequacies in the planning system
still need to be addressed. Planning reform is required if the
waste management industry is to actually provide the raft and
range of new-order facilities necessary to deliver the change
required. Much more effort is required to turn (local) waste plans
into meaningful waste strategy documents.
3.7 Producer responsibility can be further
utilised to promote the avoidance of waste (at a personal and
a manufacturing level) and to move waste which is produced further
up the waste hierarchy through good design and increased use of
take-back schemes.
3.8 Whilst all the above points are discussed
to some degree or other in the recent report by the Government's
Strategy Unit, now under consideration by ministers, they need
to be recognised as crucial elements and prioritised as such as
part of an urgent and co-ordinated national action plan.
4. CONCLUSION
4.1 Some progress has been made in moving
up the waste hierarchy in the UK—but much too little and
much too slowly. Where the waste management industry has been
at the heart of those pockets of improvement it has more often
been despite, not because of, existing policy and market drivers.
Without doubt, though, where conditions are appropriate the Shanks
Group and other waste management providers are ready and willing
to provide the necessary investment and innovation to deliver
change.
4.2 For example, Shanks has recently reached
financial close and has started work on its largest UK local authority
MSW waste management contract to date. The integrated waste management
solution Shanks has agreed to provide for the East London Waste
Authority (ELWA) includes proven Italian Mechanical Biological
Treatment (MBT) technology at its core. The MBT facilities, which
avoid reliance on landfill or incineration, will be a first in
the UK when constructed.
4.3 In fact, many of the "innovative"
waste solutions much discussed in the UK are already in operation
in mainland Europe and can readily be replicated here given the
required elements of action, certainty and public acceptance.
4.4 Shanks would be delighted to provide
any additional information that the Committee may require.
Shanks Group plc
6 January 2003
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