Claim your free 2010 double sided wall chart
The bosses of four major European electrical goods manufacturers are scheduled to meet Mike O’Brien, the Energy Minister, on Wednesday, to urge him to adopt a recycling levy on all new products.
The chief executives of Bosch Siemens, Merloni, Hoover Candy and Panasonic will say that the recycling fee is necessary to recoup the £500 million-a-year bill imposed on them by a new European directive designed to prevent the build-up of mountains of decaying fridges.
The proposed fixed fee would be levied on each category of electrical goods — washing machines, fridges, vacuum cleaners — regardless of whether consumers choose a more efficient or environmentally friendly product.
The equipment makers, who supply the £10 billion a year UK consumer goods market, argue that a transparent fee is the only way to recover the cost of recycling from the consumer. They promise that the fee will be ring-fenced for the sole purpose of complying with the European environmental legislation.
“The fairest way to recover these costs is through the use of a transparent fee. It will minimise consumer costs and will engage the public in the whole issue of recycling electrical and electronic goods,” said Phillip Morton, chief executive of Repic, the industry consortium formed to discharge manufacturers’ responsibilities under the directive.
A version of the fixed fee has already been introduced in Belgium and the Netherlands. France and Spain are in the process of bringing in such a fee.
The Government is currently resisting a visible fee, preferring to leave retailers and producers to thrash out a solution between themselves.
However, the producers believe that, without transparent auditing of the recycling charge, retailers will simply add a higher mark-up to the cost of goods, forcing prices for the consumer even higher.
Individual retailers are understood to have some sympathy with the visible fee proposal, but a spokesman for the British Retail Consortium said that the retail sector preferred a voluntary solution and was against a mandatory recycling fee.
The draft European directive obliges shops to take back virtually all forms of disused electrical equipment when customers buy a new item. However, the cost of collecting and recycling the goods falls on both producers and some retailers, including Curry’s and Dixons.
Repic’s members, who represent more than 70 per cent of the electrical and electronic goods sold in the UK, believe that without a fee, the industry’s 30,000 jobs in the UK could be under threat as production of goods is forced overseas to Asian countries with lower costs.
“This is an additional and retrospectively imposed cost which, based on the Government’s own figures, roughly equates to the current level of profitability of this sector,” Mr Morton said.
The directive comes into force on August 13, 2005, but consumers will not see the full effects of the new policy until 2008.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
In this special section we explore new food trends to help improve your dinner party and impress guests
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
1998
£47,955
2004
£56,950
Essex
Check your free Experian credit report before applying
Car Insurance
c. £70,000
The Duke of Edinburgh’s Award
Windsor
£123,460 pa
The Law Commission
London
Southwark County Council
£100,000
Home Office
Liverpool
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Includes flights, accommodation with room upgrades, transfers city tours in Hong Kong and Bangkok.
PremierHolidays.co.uk
For your ultimate tailor-made ski holiday, click here
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
Choose from the beautiful landscape and tranquil beaches of Oahu, Kauai, Maui & Big Island.
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.