Plastic waste fraud

UK Environment Minister Elliot Morley has signalled his disappointment that some reprocessors and exporters of plastic packaging waste have been failing to meet Government requirements on recycling.

A UK Government investigation has shown that reprocessors and exporters have been incorrectly issuing compliance documentation - Packaging Waste Recovery Notes (PRNs) and Packaging Waste Export Recovery Notes (PERNs) - during 2002 and 2003 which has made it appear that they were recycling more plastic packaging waste than they were. In a limited number of cases the police have been notified and investigations are currently underway.

"I am extremely disappointed that a number of reprocessors have been operating inappropriately. The fact finding team should be congratulated for finding these inconsistencies and it is now up to us to ensure that bad practice does not continue. Only by doing this will we ensure the wider credibility of our recycling system," said Morley.

As a result of the investigation and taking into account also the Agency's monitoring work, the figures for plastic packaging waste recycled in 2002 will be reduced by 34,790 tonnes, replacing a provisional reduction of 64,600 tonnes. Figures for 2003 will be reduced by 80,885 tonnes.

This means that the amount of plastic packaging waste recycled in 2002 is now 360,418 tonnes (or 20.7%) and 321,205 tonnes in 2003 (or 17.9%). However, these figures could be subject to further revision as a result of ongoing police investigations and Agency monitoring.

The reductions not only affect the amount of plastic packaging waste recycled, but also the total amount of recovery and recycling achieved by the UK in 2002 and 2003.

The investigation was carried out by the Department, in conjunction with the Department of Trade and Industry, the Scottish Executive, the Welsh Assembly Government, the Northern Ireland administration, the Environment Agency (EA), the Scottish Environment Protection Agency (SEPA) and the Environment and Heritage Service in Northern Ireland (NI EHS).

Following the same format as the wood packaging waste fact finding exercise last year, representatives of the Agencies, the Department and the devolved administrations, together with the consultant auditors (commissioned to undertake this exercise), sought to examine the robustness of existing recording and monitoring systems and audit trails adopted by reprocessors and exporters to manage the allocation and issue of PRNs and PERNs.

"Although the fact finding mission and Agency monitoring have uncovered cases of inappropriate issuing of PRNs, there will be no repercussions for any producer or compliance scheme as a result of this adjustment to the figures," added Morley.

The Minister and the devolved administrations have made clear that no individual reprocessor or exporter will be named following this exercise as it was noted that police and Agency investigations are still ongoing.

Some reprocessors have already been suspended as a result of this exercise and will remain suspended until the issues which were identified have been resolved.

"In the short term the Agency will need to focus their attention on the issues identified in the fact finding mission report and take action where necessary. Looking to the future, the Government and the Agencies will shortly be discussing with the British Plastic Federation (BPF) and the Advisory Committee on Packaging (ACP) ways to combat inappropriate behaviour of this kind," Morley said.

"Our aim must now be to improve the current system and make it more difficult for companies to inappropriately issue PRNs. I have been most impressed with the recent approach taken by the wood packaging waste reprocessing industry. They, together with others in the wood industry and the Agencies, have worked with WRAP to produce a voluntary protocol for the verification of wood packaging waste recycling which will be available for the new compliance year. I am keen to see this approach extended to all materials, in particular the plastic sector," he concluded.