Ann Davies

It is a pleasure to serve under your chairmanship, Ms Lewell. I thank the hon. Member for Gower (Tonia Antoniazzi) for securing the debate. EPR, at its base, is a tax on recycling. Recycling is devolved in Wales, and we would not normally speak on devolved issues as Plaid Cymru spokespeople, but today, I am making an exception, because several local businesses have asked me to highlight the cost to their businesses and to obtain clarity. One such business, Evan Evans, is a small local brewery that produces the best-quality beer in Llandeilo, which is in my constituency. The owner of Evan Evans, Simon Buckley—a direct descendant of the family behind the famous Buckley’s Brewery, which is in the constituency of the hon. Member for Llanelli (Dame Nia Griffith)—stated: “I have seldom felt more demoralised than now. The outlook in Wales for a small brewery is not good. Wages bills are going through the roof, and were it not for the fact that we celebrate 260 years of family brewing in Wales in 18 months’ time, I would shut up shop.” Those are damning words. Rural breweries and small and medium-sized enterprises that employ local people within their communities will feel the cost of EPR the most. These businesses are the backbone of our Welsh tourist sector. Where, locally, is the alternative employment? In my constituency of Caerfyrddin, farming has been hit, contractors are working within calendar dates, national insurance contribution hikes have meant that many young people cannot find alternative work, and as we all know, hospitality is on its knees. Extended producer responsibility—phased in during 2023, and officially published as legislation in 2024—means that businesses have to report their packaging use, pay fees and purchase packaging waste recovery notes. The prices fluctuate based on supply and demand for recyclable materials—glass, plastic or cardboard—so businesses face cost variability. Previously, if someone’s turnover was less than £2 million or they had less than 50 tonnes of packaging a year, they were exempt, but that has all changed. If they manufacture, import or fill packaging that ends up with consumers, they may be responsible. If they supply packaged goods under their own brand, they may be responsible. If they import packaging products into the UK for sale, they may be responsible. The last one does not affect the manufacturing businesses within my constituency, but the first two do. As the hon. Member for Gower mentioned, businesses do not mind paying their share, but the lack of clarity between the two ends of the M4 makes it difficult for businesses to prepare and analyse the cost effectively. I say that while acknowledging that Wales has the best recycling rates in the UK; indeed, we are second in the world, with only Austria above us. We want to keep it that way, so we need to work with our businesses. My ask to the Minister is that all Governments speak to each other to get the clarity that my businesses and constituents deserve.