Pallet Board Waste: Reintroduction of Charge

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A decision made on 11 April 2016:

Decision Reference: MD-T-2016-0032
Decision Summary Title :	Pallet board waste charge reintroduction		Date of Decision Summary:	4 April 2016
Decision Summary Author:	Recycling Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Reintroduction of the pallet board waste charge		Date of Written Report:	4 April 2016
Written Report Author:	Recycling Manager		Written Report : Public or Exempt?	Public
Subject: Pallet board waste charge reintroduction
Decision(s): The Minister approved the reintroduction of the pallet board waste charge with immediate effect.
Reason(s) for Decision: The charge for the Department to receive pallet board waste was omitted from the list of fees and charges due to a housekeeping error. As the rationale for charging to receive this type of waste is still current and as the charge has already been approved within the Department’s fees and charges, the Department wishes to reintroduce the charge at the correct 2016 rate (£48.74 per tonne excluding GST/ £51.18 per tonne including GST).
Resource Implications: The Department will require a small resource to reactivate this charge, inform operational staff and update their communications but this will be encompassed within existing roles and responsibilities and so no additional resources are required. This charge serves primarily to encourage the industry to maximise reuse and recycling and so reduce their pallet board waste. As a consequence, the Department expects to receive little additional revenue from reintroducing this charge.
Action required: The Minister to sign this Ministerial Decision as formal approval of the reintroduction of the pallet board waste charge.
Signature:		Position: Minister for Infrastructure
Date Signed:		Date of Decision (If different from Date Signed):

Pallet Board Waste: Reintroduction of Charge

DEPARTMENT FOR INFRASTRUCTURE

REINTRODUCTION OF THE Pallet board waste charge

Purpose of the Report

To provide the Minister for Infrastructure with information to support the reintroduction of the pallet board waste charge.

Current Situation

The Department has recently found that a housekeeping error resulted in the charge to receive pallet board waste being omitted from the fees and charges 2014 – 2016.

The charge was introduced in 2009 as a mechanism to stimulate the commercial industry to manage this waste upwards through the Waste Hierarchy by increasing the reuse of pallet boards and finding ways to recycle this material. This rationale is still current.

The Department has no record of pallet board waste being delivered into the La Collette facility since 2013. This suggests that the waste has been received via other channels, most likely mixed in with other commercial combustible loads delivered into the Energy from Waste plant.

The absence of charging for this waste means there is little financial incentive for the local commercial industry to manage pallet boards better by ensuring maximum reuse and then processing boards unsuitable for reuse i.e. creating kindling and decorative mulch and taking responsibility for the resultant waste.

As the charge for pallet board waste has been previously agreed as part of the Department’s fees and charges, the Department is able to reintroduce this charge with Ministerial approval.

This charge serves primarily to encourage the industry to maximise reuse and recycling and so reduce their pallet board waste. As a consequence, the Department expects to receive little additional revenue from reintroducing this charge. For example the difference between income received from pallet boards and pallet board waste in 2013 when the pallet board waste charge was in force compared with 2014 when the pallet board waste charge had been omitted was £297.67.

Recommendation

To reintroduce the pallet board waste charge at the correct 2016 rate:

£48.74 per tonne excluding GST / £51.18 per tonne including GST.

Reason for Decision

To enable the charge for pallet board waste received by the Department to be reintroduced to correct a housekeeping error.

Resource Implications

The Department will require a small resource to reactivate this charge, inform operational staff and update their communications but this will be encompassed within existing roles and responsibilities so no additional resources are required.

Action Required

The Minister to sign the accompanying Ministerial Decision as formal approval of the reintroduction of the pallet board waste charge.

Written by:	Recycling Manager
Approved by:	Assistant Director, Solid Waste

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