Documents considered by the Committee on 14 October 2009, including the following recommendations for debate: Security of gas supply, Financial management - European Scrutiny Committee Contents


14  HAZARDOUS SUBSTANCES IN ELECTRICAL AND ELECTRONIC EQUIPMENT

(30284)
17333/08
+ ADDS 1-2
COM(08) 809
Draft Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment (recast)


Legal baseArticle 95EC; co-decision; QMV
DepartmentBusiness, Innovation and Skills
Basis of consideration Minister's letter of 27 August 2009
Previous Committee Report HC 19-xix (2008-09), chapter 2 (10 June 2009)
To be discussed in Council Second half of 2009 (see para 14.7 below)
Committee's assessmentPolitically important
Committee's decisionCleared

Background

14.1 Waste from electrical and electronic equipment (WEEE) has been identified as one of the target areas for prevention, recovery and safe disposal because it presents a number of problems. This led the Community to adopt in 2002 two separate, but related measures — Directive 2002/95/EC[49] (which sought to restrict the use of certain hazardous substances in such equipment) and Directive 2002/96/EC[50] (which established procedures to reduce the amount of resultant waste and to increase the level of recycling and recovery).

14.2 In December 2008, the Commission brought forward two further proposals to recast each of these measures, the current document relating to Directive 2002/95/EC. In harmonising the rules on the restriction of the use of hazardous substances in such equipment, that measure currently requires the use of substitutes for mercury, lead, cadmium, hexavalent chromium, and polybrominated diphenyls (PPB) and polybrominated diphenyl ethers (PBDE) flame retardants from 1 January 2008 (subject to exemptions where their use is unavoidable, or where their substitutes would have greater negative impacts on health or the environment). Whilst retaining many of the existing provisions, the proposal would make a number of changes, which were set out in our Report of 10 June 2009. In particular, medical devices and monitoring and control equipment would be included for the first time, but their application would be phased in over a period up to 2017. In addition, a new annex of exemptions had been proposed specifically for them, with derogations being made additionally for military equipment (for which explicit provision is not made in the current legislation).

14.3 We noted that the UK broadly supported the proposed re-cast, but that medical devices and monitoring and control instruments were originally excluded from Directive 2002/95/EC as being safety-critical (and not to be exposed prematurely to substitute substances replacing the restricted substances, in case equipment failure resulted). Initial contact with the industry sectors concerned in the UK had suggested that their introduction in a phased way over several years, with exemptions for specific applications, would provide additional environmental benefit, and appeared to be a reasonable way forward, but that this was to be considered further as part of the Government's consultation.

14.4 We went on to note that a subsequent Impact Assessment had suggested that the inclusion of medical devices and monitoring and control instruments could give rise to annual costs within the UK of between £45 and 92 million, equivalent to 1-2% of turnover, due principally to expenditure on the research needed to bring about the product re-design and development required to substitute the restricted substances. On the other hand, it had not proved possible to quantify the benefits, and the Assessment had therefore said that "it is not clear that the proposal can be justified based on the current estimates of the size of the potential benefits and costs involved" — a conclusion which appeared to be in line with the Commission's own research, and which included the comment that the impacts of restricting hazardous substances in this equipment were extremely small, and that they were "at the limits regarding costs and benefits". We therefore asked for further information, including whether the UK proposed to support the proposal, given these doubts.

Minister's letter of 27 August 2009

14.5 We have since received a letter of 27 August 2009 from the Minister for Business and Regulatory Reform at the Department for Business, Enterprise and Regulatory Reform (Mr Ian Lucas). He says that, in other circumstances, these doubts may have led the UK to push for the two categories to continue to be excluded from the Directive. However, he considers that there are in this case a number of factors which lead the Government to the conclusion that it would be appropriate to accept the Commission's proposal. In particular, he suggests that:

  • It is clear these two sectors were only excluded from the Directive because they were considered as safety-critical equipment, and that it was thought sensible and prudent to see if the substitute substances used in non safety-critical areas caused any problems over a longer period.
  • Industry has been working towards their inclusion on the assumption that the original Directive placed an obligation on the Commission to do so, and many of the components they use are already compliant, using alternative substances that are tested to the appropriate level for critical applications.
  • The Commission has consulted comprehensively, and has agreed a long phase-in period up to 2017, with a continued exemption for active implantable medical devices until at least 2020: also, where no appropriate substitute substance is available, industry will (as now) be able to apply for an exemption from the Directive for specific uses, with the proposal including a new annex of exemptions for these two categories where it is already clear that appropriate substitute substances are not available.

14.6 The Minister also points out that, although the UK has maintained a scrutiny reserve, other Member States have not objected to the inclusion of the two categories, and that, although they will be made aware of the UK Impact Assessment, he fully expects a majority to agree to the proposal. He therefore believes that the additional costs are acceptable, given that there will be a more coherent single market covering these two sectors: and he says that industry has confirmed that the proposed phase-in period is acceptable, their only concern being that the dates proposed are, as a minimum, maintained during the negotiations — which he says the Government will do its utmost to ensure (as well as ensuring that the exemption procedure enables more efficient use to be made of it).

14.7 The Minister says that he will ensure that we are kept informed of developments, but there is already some indication that the Swedish Presidency will achieve its objective of agreement within the Council by the end of 2009.

Conclusion

14.8 It is of course perfectly possible to argue that, notwithstanding any earlier intentions, a proposal should not be adopted if there are credible doubts — as there appear to be here — over its likely cost-effectiveness. Having said that, we have noted the Minister's reasons for concluding that the UK should in this instance support the proposal, and, in the final analysis, we see no compelling grounds for seeking to second-guess the Government. We are therefore clearing the document.



49   OJ No. L 37, 13.02.03, p.19. Back

50   OJ No. L 37, 13.02.03, p.24. Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2009
Prepared 29 October 2009