Terence Flanagan (Dublin North East, Fine Gael)
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Question 4: To ask the Minister for the Environment, Heritage and Local Government the strategy he has to deal with the collapse in the international market for recycled materials; the way this demand collapse will affect recycling strategies here; the way it will affect recycling facilities; and if he will make a statement on the matter. [43224/08]

John Gormley (Dublin South East, Green Party)
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Representatives from the waste industry met with officials in my Department on 24 October 2008 to discuss industry concerns regarding the sudden drop in international demand for recycled materials. Their principal issue of concern was the need rapidly to increase the storage capacity of existing permitted and licensed facilities. Immediately following this meeting, my Department contacted each local authority, by way of circular letter, outlining the possible options to deal with licensing of additional storage and stressing the need for local authorities to give priority to any applications received.

On 31 October, I announced the establishment of an action group to examine the situation and report to me within two weeks. The action group comprises representatives of industry, local authorities, Enterprise Ireland, the executive team implementing the market development programme and my Department. I have received the report and will be implementing several actions arising from it in the coming weeks. The issue is one which affects a number of EU member states. Ireland has raised it at official level with the European Commission and I will be raising it at next week's environment Council.

The current problem highlights the importance of developing new markets and uses for recyclates. I dealt with this in an earlier priority question this afternoon. I am fully committed to achieving the highest possible levels of recycling and to the continuing development of a national network of waste recycling facilities. Since 2002, over €100 million has been allocated by my Department to local authorities to assist in the capital costs of establishing and developing such facilities.

My Department also provides an annual subvention to local authorities to assist in the operational costs associated with their recycling facilities. I have approved payment of €10 million in respect of costs incurred in the 12-month period to June of this year. A further €2 million will be paid to local authorities in respect of waste electrical and electronic equipment, WEEE, collected over the same period at local authority sites. I am also providing an additional €2 million to address the increased costs to local authorities as a result of the current market situation.

Terence Flanagan (Dublin North East, Fine Gael)
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My party colleague, Senator Paudie Coffey, raised this matter in the Seanad with the Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Michael Finneran. Senator Coffey is as concerned as I am over the collapse in international demand for raw recyclable materials. There is not enough adequate storage space for existing materials and it is not acceptable for processed recycled material to be stored in advance before export. I am concerned with the direction of the Government's national waste strategy in light of the collapse of the international market for recycled materials, making it meaningless and irrelevant.

Brendan Howlin (Wexford, Labour)
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Does the Deputy have a question?

Terence Flanagan (Dublin North East, Fine Gael)
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In his Seanad response on the matter, the Minister of State claimed the Government was considering sending materials abroad to be burned. If that were the case, it would make a mockery of the Government's recycling policy. How does this tie in with the Minister's opinions?

John Gormley (Dublin South East, Green Party)
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I thought I had given much clarity on this issue earlier when I responded to Deputy Joanna Tuffy. I outlined exactly the percentages relating to the export of recyclates. Paper and cardboard is exported. There is a difficulty with the price received for these particular products because it has decreased due to the collapse of the market in China and elsewhere. We have examined the increasing market in India as well. As India may soon overshadow China economically, we have examined the option of it being our main export market.

This collapse has had an immediate impact on the recycling industry. Smaller recycling companies will feel the lack of cash flow much more than the larger ones, particularly if their entire business model is based on recyclates. There are also costs in storing these materials. Any lack of storage facilities with sufficient capacity and quality may lead to a deterioration of the product.

Terence Flanagan (Dublin North East, Fine Gael)
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How much did the action group report cost? What were its recommendations? Does the Minister consider that the storage or burning of these materials could have a detrimental effect on householders' attitudes to recycling?

John Gormley (Dublin South East, Green Party)
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There was no cost for the report because it was compiled by my Department. The Department along with the main players in the industry went through the various options and then came up with recommendations. I hope to publish the report shortly. The environment spokespersons from the Opposition parties will be invited.