Majority of producers subject to eco-tax 'do not recycle packaging waste' - Auditor General's report

Updated with Minister's reaction:

The audit report concludes that government initiatives have enabled producer recycling of packaging waste to take off, particularly since 2009.

However, the recycling is still significantly below the legally-set target for 2009, which obliges producers to recycle 50% of the packaging waste arising from the packaging they put on the market. This renders it difficult for Malta to reach its national packaging waste recycling targets set by EU legislation.

The audit indicates that packaging waste recycling by producers is significantly below target for a number of reasons.

“Generally, Government and producer efforts to date have been start-up in nature, and consequently, it is likely that more time is needed for these efforts to bear fruit. Recycling opportunities were limited until 2008, since the Government-owned Material Recovery Facility was built behind schedule due to difficulties encountered in the permitting and tendering processes. Additionally, collective producer recycling schemes only started collecting packaging waste from Local Councils in 2009,” the report said.

The audit also found that the Eco-Contribution system introduced in 2004, has had mixed results in encouraging producer responsibility, including that for packaging waste.

“It has generated sufficient revenue to offset the costs borne by government due to producers’ non-compliance in packaging waste recycling and played a positive role in the modest packaging waste recycling achieved.

“On the other hand, the majority of the producers subject to Eco-Contribution on packaging waste-related items still do not recycle the packaging waste in question.”

The Packaging and Packaging Waste Regulations oblige packaging producers (manufacturers and importers) to recycle a set percentage of the packaging waste resulting from the packaging they put on the market annually.

Minister's reaction
“The report recognised the significant progress achieved in the last years in waste management,” resources and rural affairs minister George Pullicino said.

“This was the result of massive investmetn in the necessary infrastructure and government’s courage in introducing the eco-contribution.”

Pullicino said the removal of the subsidy on waste, taking the price of landfill disposal from €0.77 up to €20, incentivised local councils to introduce waste separation schemes.

“The ministry agrees with the Auditor’s conclusions and recommendations... but in the past, partisan campaigns have delayed the necessary investments,” Pullicino said referring to opposition against the recycling plant in Marsaskala.