Oireachtas Joint and Select Committees

Tuesday, 9 July 2024

Joint Oireachtas Committee on Climate Action

Circular Economy as it relates to the Waste Sector: Discussion.

11:00 am

Mr. Conor Walsh:

No, and it is not about hit to margins. It is about increased costs, and increased costs always get passed to customers unless they are covered by somebody else. We are trying to get somebody else to cover that so it is not passed to customers. We are working on behalf of the public to try to stop that from happening and we are not doing very well right now. We have no claim for compensation. The high-value materials were acting as a subsidy for low-value materials in the recycling bin. Repak has a responsibility there as well where it has to cover the costs of the recycling bin - I believe it is up to 80% - and 20% can be passed to the public. Whether it is Repak, Re-Turn or the Government, we want one of those three to step in. It is not a lot of money. We put it at between €6 million and €10 million. The Government is taking €18 million per year in a new recovery levy that only came in last year and will take more on that next year. The Government is taking in a lot of money and we thought that between €6 million and €10 million can go back in to neutralise the impact on the recycling system so the public would not have to pay more. The way things stand, we are not getting anywhere and are frustrated. The problem is that the costs are on the material recovery facilities and they have a gate fee. Their gate fee cannot stay the same if their costs are higher. If their gate fee changes, what they charge to the collectors goes up and the collectors will have no choice but to pass it to the customer. We are trying to work on our members to not increase those costs but it seems inevitable right now.