UK businesses unaware of tough new treatment requirements (03/09/2007)

Most UK businesses are unaware of and unprepared for regulations that require all businesses to treat their own non-hazardous waste before landfill disposal from 31 October, according to Grant Thornton's Government and Infrastructure Advisory team.

The legislation has resulted from the European Union Landfill Directive, which aims to reduce reliance on landfills throughout the EU, and requires every business to fill out and keep 'pre-treatment forms' to demonstrate their commitment to landfill reduction.

This means that all businesses need to demonstrate treatment of their own waste destined for landfill, in either a physical, thermal, chemical, or biological process.  In addition landfill operators must also demonstrate they are not accepting waste from business without it first being treated.

Grant Thornton Government and Infrastructure Advisory is a leading financial adviser to PFI/PPP Projects in the UK and Europe. To date the group has advised on over 300 projects with a combined capital value in excess of £30 billion.

"Crucially, it isn't just manufacturers that will now have to treat their own non-hazardous waste before it is collected; every business in the country, including high street retailers, City offices and country pubs must now produce their own reports on how they have treated their waste, in accordance with the EA's guidelines"
Nigel Mattravers, Grant Thornton's Waste Specialist and Director

After discussing the issue with a  variety of the firm's larger waste producing clients, Grant Thornton's Waste Specialist and Director, Nigel Mattravers, said that it was evident that the majority of UK companies were simply not prepared for the change, and could incur EA penalties as a result.

Mr Mattravers commented:

"It feels like over the past 12 months every man and his dog has been making noises about becoming greener, but here we have a major piece of legislation coming into force that supports this and it is virtually ignored."

"Crucially, it isn't just manufacturers that will now have to treat their own non-hazardous waste before it is collected; every business in the country, including high street retailers, City offices and country pubs must now produce their own reports on how they have treated their waste, in accordance with the EA's guidelines," Mattravers said.

According to Grant Thornton, the law requires the business itself, or a certified contractor, to change the characteristics of the waste in order to reduce its volume, facilitate its handling and/or enhance its recovery. This could include simply sorting and recycling, or preparing now for the distinct possibility of further law change to come, requiring even greater treatment efforts.

Mr Mattravers said this was a "slow burner" type of regulation that would gather momentum as green issues continued to gain traction in the UK private sector, and in effect was a step towards making recycling avoidance illegal.

He continued, "While we won't see the recycling police here any time soon, the regulations will force every business in the UK to think much more seriously about their waste streams - and then act."

The Environment Agency has indicated the policing of these regulations will be very much a top down affair with the EA confirming that if false pre-treatment forms are filled out, the waste producer can be prosecuted  according to Grant Thornton.  The landfill operator could also risk prosecution if it fails to examining the waste properly.

Mr Mattravers concluded:

"What is most vague is how heavily these rules will in fact be enforced, and whether the EA is planning to get tougher over time. It may very well be that landfills are left with much of the responsibility for policing these changes, as it is simply easier to penalise a central operator than try and go after individual waste producers."

"Whatever the enforcement system, it is clear that UK businesses must start preparing for the changes, now."

Further information

 Grant Thornton UK LLP is a leading financial and business adviser with 31 offices nationwide. The company is a UK member of Grant Thornton International, one of the world's leading organisations of independently owned and managed accounting and consulting firms  providing assurance, tax and specialist business advice to privately held businesses and public interest entities.  The strength of each local firm is reflected in the quality of the international organisation. All Grant Thornton International member firms share a commitment to providing the same high quality service to their clients wherever they choose to do business.

 www.grantthornton.co.uk

This article has been adapted from an original press release from Grant Thornton.

Grant Thornton indicate that  the  press release had been prepared only as a topical guide to business matters.  The company says that no responsibility for loss occasioned by any person acting, or refraining from acting, as a result of this press release can be accepted by us/Grant Thornton UK LLP.  Professional advice should be sought before making any investments.

Photo:  Crown © 2007