Dr. Geraldine Brennan:

Apologies that I went broader and more macro. Regarding tax, our members have highlighted that, if there were reduced VAT on repaired and remanufactured goods, it could create a level playing field. Actually, it would not be a level playing field, so that is not the right analogy to use. Rather, it could create an incentive for consumers. This is about creating the markets and what kind of financial incentives the Government can provide to support the marketplace for circular product service systems. I will emphasise the idea of a product service system. Ultimately, the circular economy is about trying to create the infrastructure around products so that, when the Senator or I no longer need a piece of equipment, phone or some other fast-moving consumer good, there is a way of getting it back to either the original manufacturer or a retailer who can put it back into the marketplace. Using VAT has been successful in other countries, for example, Sweden and France, specifically in respect of repairs.

Speaking in a personal capacity, there is an opportunity to gain understanding in this regard. Repair is often viewed as separate to manufacture and the manufacturer's supply chain, meaning it is happening outside the manufacturer's control and influence. Remanufacturing is about having a hybrid of accredited repair and independent repair. One of the reasons the circular economy skill set initiative has been set up is that, to repair white goods to a high level, certain skills are required so that the repair person does not get hurt and the product functions. From an EU and European Remanufacturing Council perspective, remanufacturing is a very specific thing. The product in question has a particular type of guarantee, it is like new, and the consumer would never know its parts had been reused. In my point, I was trying to say this was about trying to understand for which sectors and which types of product these different infrastructures could work together - social enterprise, independent repair versus manufacturer and its extended supply chain through an accredited repair process, and a hybrid of the two. I do not see this as either-or but as trying to find synergies between both. The tax aspect, including VAT, is important.

We have a number of actors from the waste electronic and ICT asset management sector in the CIRCULÉIRE network. They have highlighted that goods are sometimes essentially double taxed when putting them back onto the market. There is a disincentive in some respects because of the tax structure. I would like to follow up on this point and bring it to life with more details. I want to do it justice because it is sector specific. Reverting to the committee with those specifics might be helpful.