Schedule 5: Producer responsibility for disposal costs
- Schedule 5 makes provision for regulations under which those involved in the manufacture, processing, distribution or supply of products or materials may be required to pay for or contribute to the costs of disposing of those items. Part 1 of the Schedule covers disposal costs, and the appointment of one or more administrators and Part 2 covers enforcement and the appointment of one or more regulators.
Part 1: Requirements
General power
- Paragraph 1 sets out the power for the relevant national authority to make regulations to require the payment of sums by specified persons relating to the disposal of specified products or materials. Sub-paragraph (2) sets out that only those involved in manufacturing, processing, distributing or supplying the specified products or materials can be required to meet or contribute to such costs.
"Disposal costs" and "disposal"
- Paragraph 2 makes provision for determining what disposal costs are. These costs may include the costs of collecting, transporting, sorting, and treating products or materials for disposal. They may also include the costs of providing the public with information about the disposal of products, for example through communication campaigns. Costs in relation to products or materials that have been disposed of unlawfully may also be included (for example, the costs of clearing up products or materials that have been littered or fly-tipped). Sub-paragraph (2) clarifies that "disposal" includes the re-use, redistribution, recovery, and recycling of products or materials. Sub-paragraph (4) allows for disposal costs to be calculated in accordance with provision made in the regulations.
Calculation of sums payable
- Paragraph 3 allows for the amount to be paid to be calculated in accordance with the regulations and for this amount to vary according to the design or composition of a product or materials, or the methods by which it was made, or other factors such as its impact on the environment. For example, a producer of easily recycled products might pay less, and producers of unrecyclable products might pay more.
Administration
- Paragraph 4 provides for the appointment of one or more administrators. An administrator’s role is to manage provision made in relation to disposal costs in the regulations. Paragraph 4(1) includes the option of setting out a process for appointing an administrator(s) in regulations.
Registration
- Paragraph 5 makes provision for those who are required to pay disposal costs to register with an administrator and the payment of a registration fee. The administrator may also be required to register with an enforcement authority appointed by regulations made under this Schedule. Provision is also made for the regulations to establish the process for registering with an administrator. The regulations may require any registers that are made to be published or made available for inspection.
Payment of sums
- Paragraph 6 outlines the provisions that regulations may make regarding payments of sums to an administrator. This includes how the sums paid are to be held by the administrator. This might be, for example, into a bank account.
Distribution of sums paid
- Paragraph 7 makes provision for sums paid to an administrator to be distributed to persons who have incurred disposal costs in relation to the products or materials covered by the regulations. These sums can be distributed directly by the administrator to whom they have been paid, or to another administrator who then distributes among such persons. For example, an administrator may distribute sums to local authorities who have incurred costs in collecting and disposing of the products to which the regulations apply.
Repayment of sums paid
- Paragraph 8 allows for sums paid to an administrator to be paid back, in whole or in part, to the person who paid them. It allows for regulations to set out how the amount to be re-paid is calculated and the conditions under which any repayment may be made. For example, a repayment might be made if a material has been recycled into a high value application.
Charges
- Paragraph 9 makes provision for the payment of a charge to administrators to cover the administrator’s costs incurred in relation to its functions.
Consultation requirements
- Paragraph 10 sets out that the relevant national authority must first consult the relevant stakeholders before making regulations under this Schedule. This consultation requirement may be met by a consultation before paragraph 10 comes into force.
Part 2: Enforcement
General power
- Paragraph 11 makes provision for the relevant national authority to make regulations for the enforcement of regulations made under Part 1 of this Schedule.
Powers to confer functions and Monitoring compliance
- Paragraphs 12 and 13 allow for functions to be conferred on one or more enforcement authority. These functions may include the exercise of discretion, to monitor compliance with regulations, and to provide guidance about the exercise of its functions available. Regulations may also provide for a person to be authorised to exercise functions on behalf of an enforcement authority.
Records and information
- Paragraph 14 makes provision for the keeping of records and to whom records or information is to be provided to.
Powers of entry etc
- Paragraph 15 allows for regulations to confer on an enforcement authority powers of entry, inspection, examination, search and seizure.
Sanctions
- Paragraph 16 makes provision for penalties for a breach of a requirement in regulations. These can be criminal or civil sanctions. A criminal offence (punishable with a fine) can only be imposed for breach of a civil sanction or for the obstruction of or failure to assist an enforcement authority.
Costs
- Paragraph 17 makes:
- provision for the payment of a charge to cover the costs incurred by an enforcement authority in performing its functions under the regulations; and
- provision for a court order to include for the payment of the costs incurred by an enforcement authority in relation to the matter the court or tribunal has dealt with.
Consultation requirements
- Paragraph 18 sets out that the relevant national authority must first consult the relevant stakeholders before making regulations under this Schedule. This consultation requirement may be met by a consultation before paragraph 18 comes into force.
