Contribution
I am sorry, no.
In public, and in response to correspondence, DEFRA stated that there is no, or not enough, evidence of material-switching. That is simply not true. The industry, our businesses, and the sectors affected have supplied that evidence. It makes me wonder whether there is any threshold of evidence that would result in a rethink of the scheme.
DEFRA has highlighted the modulation of future EPR fees to address those expansive concerns, but let us be honest, even at the earliest point that such modulation would be introduced, huge and likely terminal damage will already have been done to glass manufacturers. It is not clear under the current guidelines whether glass will receive a reduction in fees, and it could even receive a fee increase in the future. Fees are currently charged retrospectively so, given the lack of confirmed information on the level of fees that glass will face, the costs are essentially unrecoverable. How can businesses be expected to operate under this profound uncertainty about their current and future costs?
For DEFRA, “reuse” often represents a magic bullet that will address all concerns, if only the industry would get onboard. The glass sector is keen to be part of the development of reuse and glass is the perfect material for it, but we must accept that large-scale national reuse systems are at least a decade away because there is currently no reuse infrastructure. Furthermore, not all products are suitable for reuse. Glass manufacturers can already supply reusable bottles, but a reuse scheme is much more than that. It would require significant buy-in across the whole supply chain.
The Minister also needs to recognise that not all glass bottles are for drinks. Beatson Clark, in my constituency, manufactures medicine bottles. Reuse is a laudable goal and one that the glass industry is keen to collaborate with the Government to achieve, but it is being repeatedly deployed as grounds to ignore the industry’s concerns about EPR. Reuse and EPR are two separate issues, and the conflation seems a deliberate muddying of the debate. The short-term impact of EPR could destroy the UK glass industry long before plans for reuse are even on the drawing board.
DEFRA has stated that the recycling reforms will add at least 21,000 new jobs and £10 billion to the UK economy, and stimulate the growth on which the Government are rightly focused. Yet it is unclear how those new jobs will be created. They are unlikely to be the kind of wealth-generating jobs that we currently have in the glass sector—jobs that are based in our manufacturing heartland, which really needs that work. Even if the Minister’s prediction were true, why risk existing jobs? Why not take the time to get EPR right and have both?
This is not scaremongering. The glass packaging industry is being driven into a crisis directly of the Government’s own making. UK glass manufacturers are already reporting that demand is down by 20%—although the EPR policy has been in place for only a month—and that low-cost imports have increased to help to absorb EPR costs.
On paper, I get that the Government are ostensibly seeking to encourage recycling, while recovering the cost to the public purse of its delivery. That is the right objective, but their approach will achieve the exact opposite. It will encourage switching to less recyclable materials; add costs to businesses such as pubs and breweries already struggling under inflationary and other cost pressures; and increase prices for consumers. If the concerns of industry are not addressed today, the Government also risk destroying our domestic capacity, leaving us reliant on highly polluting foreign imports.
I have raised these issues with the Minister time and again, as have other hon. Members, British Glass and individual businesses. I cannot therefore understand the reticence to engage with these very real problems. The origins of EPR lie with the previous Administration, but by continuing this flawed and ultimately self-defeating approach, a Labour Government risk destroying a great British industry. Does the Minister really want to be responsible for killing off our most recyclable packaging producer?