Packaging: Recycling
Question
Tonia Antoniazzi
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the potential impact that the impairment fee applied under the Extended Producer Responsibility scheme will have on business cashflow and financial stability.
Answer
Mary CreaghIncorporating impairment provisions for bad debt in a cost recovery scheme is an expected consideration of Government as detailed in Managing Public Money guidelines and is common practice when setting fees. Whilst Notice of Liabilities issued under the Extended Producer Responsibility scheme are due for payment after 50 calendar days, liable producers have the facility to pay in quarterly instalments. These impairment provisions can only be used for specific purposes and will be subject to regular scrutiny and review. Where the impairment provision isn’t fully utilised, liable producers will be given a refund.