Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 4: To ask the Minister for the Environment, Heritage and Local Government his views on the collapsing recycling industry here and abroad; the action he has taken to identify new markets; the amount spent on storing recyclables since June 2008; the estimated cost of storage in 2009; and if he will make a statement on the matter. [4170/09]

John Gormley (Dublin South East, Green Party)
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I remain committed to building on the success of recycling in recent years despite the recent downturn in recyclable markets. I am glad to say there is now evidence of some market recovery, particularly for good-quality segregated material.

I raised the issue at the Environment Council in Brussels on 4 December 2008 and 12 member states supported my intervention. The European Commission has undertaken to carry out a review of the matter and to revert to us with options for action. Ireland also raised the issue at the December meeting of the EU Technical Committee on Packaging Waste. At our suggestion, a database of outlets for such material is being compiled by this committee.

On 31 October 2008, I announced the establishment of an action group to examine the matter and report within 2 weeks. Arising from the report I decided that a number of sub-groups should be established to drive action on issues such as quality and development of best practice, licensing and enforcement, and public infrastructure.

The storage of recyclables and any associated costs are a matter for the owners of the material. No funding has been provided by my Department for such storage, nor is it envisaged that it will do so in 2009.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I support the efforts made by the Minister in dealing with this important issue. The Irish have made huge strides in recycling waste and it would be a pity if this great progress were reversed because of the lack of market opportunities for our products abroad. Will the Minister indicate where the markets for recyclables are likely to develop? Such markets existed up to six months ago. Does the Minister believe a more balanced market will come into being and that opportunities will develop in countries such as China, to which many Irish recyclable goods were exported in the past?

What role has Repak in assisting companies to be prepaid and to resolve their current cashflow issues by making some money available up front to support them at this difficult time?

John Gormley (Dublin South East, Green Party)
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A number of meetings have taken place with Repak and a number of sub-groups are driving action in the recycling market. A meeting took place on 6 January last at which it emerged the material is now moving and that the amount of recyclables in storage has reduced. Repak estimated that approximately 8,000 to 10,000 tonnes are currently in temporary storage.

Markets have reopened and prices recovered slightly in December but there is a problem with plastics, due in large part to the low price of oil at present. It is strange to say we need to ensure we have higher oil prices but it is a fact because recyclable plastics will not move otherwise. There is no movement in the Chinese market in particular. The paper and cardboard markets, particularly for paper and cardboard of better quality, are recovering but there is still a problem with plastics. I am trying as best I can to ensure we have some movement in this area. We have invested an additional €2 million, which will bring the total fund up to €14 million in 2009. This is to assist the local authorities with the operational costs associated with their recycling facilities.