>PACIA Annual Report 2004 Plastics and Chemicals Industries Association Incorporated >Contents Our Vision President’s Report .................................................................. 3 PACIA’s vision for the industry in Australia is that it be vibrant and diverse, valued and respected by its customers, suppliers, employees, shareholders, the wider community and government – and that PACIA plays a central role in achieving that vision. Chief Executive’s Report ........................................................ 4 Chemicals HSE Council .......................................................... 8 Regulatory Affairs Our Position The Plastics and Chemicals Industries Association (PACIA) is the pre-eminent national body representing the plastics, chemicals, adhesives and sealants industries in Australia. PACIA represents Australia’s fourth largest manufacturing sector – a sector that has a turnover of $24.6 billion annually and provides direct employment for more than 81,000 people. The plastics and chemicals sector provides essential materials to so many industries – products that are the building blocks of a modern industrial economy. Through the Responsible Care and Plascare programs, PACIA assists its members to ensure that the plastics and chemicals industries are leaders in health, safety and environmental performance improvement. Responsible Care® Community Advisory Panels Plastics Council ...................................................................... 12 Polyurethanes Industry Group (PURD) ................................. 16 Recycling Expanded Polystyrene Australia (REPSA) .............. 17 Sustainability Covenants......................................................... 17 ® PACIA is proud to represent those companies whose product and process innovations have contributed so substantially to improving the quality of life enjoyed by all Australians. 2 Trade and Commercial Affairs Council .................................. 19 External Board and Advisory Board Participation ................. 22 Reputation Management Council .......................................... 23 > P r e s i d e n t’ s R e p o r t The evidence of PACIA’s effectiveness can also be found in the strong relationships it has built with Federal and State Governments Mike Dwyer President The conclusion of my term as President of PACIA provides an opportunity to review the role the association undertakes on behalf of its members and its relationships within the wider industry, with governments and with the community. PACIA has established itself with its members and other stakeholders as the pre-eminent body within the chemicals and plastics sector. Evidence of this can be garnered from its relationships with member companies and the support those companies provide in the management of issues, framing of legislation and the development of standards and practices designed to make our industry more sustainable. The evidence of PACIA’s effectiveness can also be found in the strong relationships it has built with Federal and State Governments and agencies and in the benefits this has brought to members through increased consultation and reduced regulation. Notwithstanding this we are also exploring ways of leveraging the strengths of other industry associations where that will provide a greater benefit to our members. This effectiveness is the result of the direction set by successive Boards, the Issues Councils and the staff, headed by former Chief Executive Martin Jones, and his successor, Michael Catchpole. For the year in review, and the period that preceded it, I would like to pay particular acknowledgement to Martin’s dedication in redirecting PACIA to ensure that its activities had one purpose – to bring benefit to members. And as I have stated often during my time as President, the members who benefit most are those who engage with PACIA, who work with the Secretariat in the management of issues, and who provide their expertise for the betterment of their business and the wider industry. Once again, we are indebted to the companies whose executives are active on PACIA’s Board, Councils and working groups, because they provide the knowledge and strength that underpins the work of the Secretariat. In a broader context, the positive effects of this collaboration can be seen in the report presented to the Federal Government in August 2004 by the Chemicals and Plastics Leadership Group (CPLG). This group drew on the individual and collective expertise of many involved in the chemicals and plastics sector to present a comprehensive report to government as a conclusion to the Action Agenda process begun in 1999. The task that now confronts PACIA and other industry bodies, member companies and government is the implementation of the recommendations contained in the CPLG report. Once again, I trust that this Annual Report will give Members an appreciation of PACIA’s role and its achievements and a reason to look to the future with optimism – tempered as always by a clear understanding of the challenges we all face. I would like to conclude by thanking my colleagues on the Board, the executive and staff of PACIA, and many friends within the industry for their support during my term as President,and as a director over the past four years. Mike Dwyer President 3 > C h i e f E x e c u t i v e’ s R e p o r t That dual focus on service to members and partnerships with all stakeholders will be maintained – and indeed extended wherever possible. Change is a constant – at least that’s the experience of our industry, if not of our industry association. After more than three very productive years at the helm, former CEO Martin Jones stepped down late in the financial year to resume a career in the corporate sector. Martin left PACIA in good shape, with key executives and staff committed to the provision of the very highest levels of service to member companies and with the association having forged strong and productive partnerships with government. That dual focus on service to members and partnerships with all stakeholders will be maintained – and indeed extended wherever possible. Reaffirming national role As the year closed, the Board confirmed my appointment as Chief Executive and shortly thereafter also signed off on a restructuring that recognises the national role played by PACIA’s executives in the management of issues and programs for the benefit of members. The restructure reflects a pro-active, national role for the senior executives and builds on their current responsibilities and expertise. The new appointments are as follows: • Margaret Donnan: Director, Industry Development – Chemicals (formerly Manager Regulatory Affairs) Michael Catchpole Chief Executive • Peter Bury: Director, Industry Development – Plastics (formerly Plastics Manager) • Stephen Holland: Director, Corporate and Community Relations (formerly Manager NSW and Manager Responsible Care) • Brian Gallagher: Director, Trade and Economic Policy (formerly Commercial Affairs Manager) 4 The restructure has also resulted in promotions and reassignments for some existing staff: • Honi Walker has been appointed Manager Public Affairs and will assume some of the duties previously done by the Director Public Affairs. • Elise Kimpton has been appointed Manager Administrative Support and will continue to serve as PA to the CEO. • Jenny McLean has been appointed to the position Administration Coordinator – Chemicals. Further changes and new appointments will occur in coming months as we seek to maximise the effectiveness of the association in its dealings with members, government, other industry groups, media and the wider community. And just as we must adapt to changes within the Secretariat, so we will also experience in the new financial year changes at Board and Council level, with Mike Dwyer stepping down as President and Noel Williams taking up that role, and Barry Kelly succeeding Noel as Chair of the Chemicals HSE Council. Action Agenda progress In reviewing the year, a number of issues and achievements stand out. Mike Dwyer has reported on the closing stages of the Action Agenda process, which culminated in the Final Report of the Chemicals and Plastics Leadership Group (CPLG), presented to the Australian Government soon after the year ended. This report is based on the findings of the CPLG and its Working Groups and can be read in full at: www.cplg.org.au. From the report it can be seen that the Action Agenda process has produced results, most notably in the area of regulatory reform, but also in increased government understanding of and support for improved skills training programs and a more accessible system to support innovation within manufacturing industry. For the next year and beyond, there will be a specific focus for PACIA and its allied industry associations, based on the CPLG’s report. The aims will be: • to continue the progress made in regulatory reform, particularly through a systematic review of regulations impacting on the industry, and of options for greater efficiencies within regulatory agencies; • to remove the Tariff Concession Scheme and extend government assistance for infrastructure development to include existing manufacturing sites as well as new sites; • to replace the existing R&D tax concession scheme with an alternative that provides funds to support earlystage research and development, and to assist SMEs to access existing R&D funding programs; • to introduce programs to specifically address skills training needs for existing industry employees and to attract new employees with the skills and motivation required to build the industry. Issues and achievements To return to the achievements of the year, and as noted in the President’s Report, there is recognition within PACIA that these are due to the work done by staff and to the cooperative relationships built with members, industry partners and government. Key actions and achievements for the year are covered in full in the Issues Council reports, but have included: • Passage through Federal Parliament of the Industrial Chemicals (Notification and Assessment) Amendment (Low Regulatory Concern Chemicals) Bill 2004 • Agreement on integrated dangerous goods and hazardous substances regulations and the development of workable, consistent regulations on major hazards and dangerous goods at the State level • Development of the Responsible Care® External Verification program and of measures to enhance site and supply chain security measures • Successful negotiation of amendments to the NSW water treatment legislation to clarify the extent of liability on persons certifying a process of disinfection in water cooling towers • Improvements to the PACIA Carrier Accreditation Scheme to remove duplication with other general transport accreditation schemes, reduce audit costs and improve transport safety • Implementation of a Sustainability Covenant with the Victorian EPA and recognition by government of the industry’s commitment to sustainable development • Reinforcement of PACIA’s position on free trade negotiations, particularly measures relating to anti-dumping and/or countervailing action, phased tariff reductions and effective rules of origin • Compilation of the PACIA 2003 Safety Surveys for Chemicals and Plastics members to assist individual companies to improve their HSE performance • Application of National Packaging Covenant principles in conjunction with government and industry partners to ensure no levies or bans were introduced on plastic bags • Development of a global "Framework for the Use of Degradable Plastics" and initiation of a program to establish standards for degradables • Release of the landmark policy “Eliminating Plastic Waste from landfill using Supply Chain Stewardship”, demonstrating the industry’s leadership in waste management • Assistance to small to medium sized member companies to access government assistance, grants and awards for new product and process innovation, and cleaner production initiatives • Negotiation for government funding of free Occupational Health and Safety audits to assist members to implement safer workplace practices • Organisation of a successful National Conference, including support from the Victorian Government for international speakers on sustainability and chemicals regulation Councils and committees PACIA’s Issues Councils and related working groups have contributed to all of these achievements. Groups such as the Regulatory Affairs Networks provide a forum for members and feedback to PACIA on those issues requiring immediate action. The recently-formed Responsible Care® sub-committee of the Chemicals 5 > C h i e f E x e c u t i v e’ s R e p o r t Council and the network linking Responsible Care coordinators will also assist in the implementation of this crucial industry program, as will the sub-committee responsible for implementation of the Plascare™ program. PACIA’s special interest groups have also been active in representing the interests of their members. Reports by these groups are included within this Report. In addition to the Councils and committees, PACIA has also worked with the national Community Advisory Panel to develop the CAP’s role as an adviser to the association and member companies. The CAP is currently reviewing its role, membership and responsibilities and will present a report to the PACIA Board at the end of this year recommending measures that could increase its effectiveness as a representative community advisory body. PACIA also acknowledges the dedicated work done by members of community advisory panels at state and local level and continues to work with those groups to address health, safety and environmental issues involving both the industry and community. Managing change An assessment of the achievements and changes for the year would be incomplete if it did not note changes in staff at PACIA and the recruitment of people who bring valuable knowledge and skills to the organisation. In addition to former CEO Martin Jones, these staff departed during 2003-04: • Margaret Matthews left PACIA having served for several years in senior roles, including Director Business Development and then State Manager in Western Australia 6 • Ashley Van Krieken resigned having worked as Commercial Affairs Manager for some years, first in the Melbourne office and then as the inaugural manager of the Canberra office • Ruth Pieronczik took over the role of Accountant and has worked hard to move PACIA’s accounts to a new system and to produce timely reports for the Board and Councils. • Brenda Bayens resigned as Accountant, a role which she had filled for nine years and through several transitions at PACIA • Kin-Chun Ip replaced Debbie Liew as EPS Industry Coordinator and will continue to work with Kathryn Fisher and members of the REPSA group. • Robert Muirhead, who worked closely with members and the Victorian EPA to establish the ground-breaking Sustainability Covenant between PACIA, its members and the EPA As this report was being prepared, the Secretariat was in the process of filling other positions and seeking to provide additional resources to service members in New South Wales and Western Australia. • Karen Cooper, who worked with plastics members as Member Relations Executive in New South Wales • Debbie Liew, who joined PACIA as a volunteer and then secured work first with the EPS group and then with an external organisation to further her career The future PACIA’s role and its direction will be guided by the needs of its members. Those needs will be conveyed through the Board, Issues Councils, interest groups and committees, and the member companies which have a stake in the future of our industry. I look forward to working with members and my colleagues to ensure that our industry benefits from the changes we are experiencing and successfully meets the challenges that lie ahead. On behalf of members, I would like to acknowledge the contributions of all of these staff to the work and the achievements of PACIA during their time with the organisation. I would also welcome the following appointments. Michael Catchpole Chief Executive • Dalreen Thomas, who worked for some years as an Administrative Assistant on a range of programs, including Responsible Care • Brian Gallagher took over the commercial affairs and Canberra role from Ashley Van Krieken and his extensive experience in government, and particularly in trade and industry matters, has already been reflected in his work with the Trade and Economic Affairs Council. PACIA Board and Meeting Attendance 2003-2004 Mike Dwyer, Viscount Plastics Pty Ltd (President) Attended 4 meetings Noel Williams, Dow Chemical (Australia) Limited (Vice President) Attended 3 meetings Peter Brooksbank, Marplex Australia Pty Ltd (Treasurer) Attended 3 meetings Barbara Gibson, Orica Australia Pty Ltd Attended 3 meetings Hutch Ranck, DuPont (Australia) Ltd Attended 1 meetings Peter Hood, Coogee Chemicals Pty Ltd Attended 3 meetings John Gillam, CSBP Limited Attended 4 meetings Tony Dunkerley, Ariel Industries Pty Ltd Attended 3 meetings Ross McCann, Qenos Pty Ltd Attended 2 meetings Keith Bettles, Wacker Chemicals Australia Pty Ltd Attended 2 meetings (Appointed 28/01/04) PACIA Organisational Chart Chief Executive Michael Catchpole Director, Corporate & Community Relations Stephen Holland Director, Industry Development – Plastics Peter Bury Administrative Assistant (vacant) Director, Trade & Economic Policy Brian Gallagher Director, Industry Development – Chemicals Margaret Donnan Administration Coordinator – Chemicals Jenny McLean Regulatory Affairs Officer Carlos Santin Personal Assistant Manager Admin Support Elise Kimpton Manager Industry Development (Sustainability) (vacant) Member Relations Manager, Vic Fiona Wilkes PURD Co-ordinator Fiona Wilkes Manager Public Affairs Honi Walker Accountant Ruth Pieronczik EPS Industry Co-ordinator Kathryn Fisher EPS Industry Co-ordinator Kin-Chun Ip 7 >Chemicals HSE Council “This reform is one of the significant outcomes of the work of the Chemicals and Plastics Leadership Group and was achieved only with the invaluable assistance of member company representatives on the LRCC Working Groups.” Rainer Koch (Bayer AG), Margaret Hartley (NICNAS) and Mark Hyman (DEH) 2004 PACIA National Conference Nick Munafo and Graham Dickinson (Ciba Specialty Chemicals Pty Ltd) Robert Zapp (BASF Australia Limited) 8 The Chemicals HSE Council replaced the Health, Safety and Environment – Operations Council in November 2002 and assumed responsibility for oversight of the regulatory reform agenda and the Responsible Care® program. The broad coverage of the Council has seen it take a leadership role on behalf of PACIA in the management of many issues critical to our industry. The achievements for the year include: NICNAS Low Regulatory Concern Chemicals: Helped drive NICNAS reforms – in June 2004, Federal Parliament passed the Industrial Chemicals (Notification and Assessment) Amendment (Low Regulatory Concern Chemicals) Bill 2004. This reform is one of the significant outcomes of the work of the Chemicals and Plastics Leadership Group and was achieved only with the invaluable assistance of member company representatives on the LRCC Working Groups. NICNAS Fees: Successfully lobbied with other industry groups for a reduction in NICNAS fees for 2004-05 from the proposed 9.5% to 5.1% - a reluctant but necessary compromise to ensure further progress with the Low Regulatory Concern Chemicals (LRCC) initiatives this year, as well as other reforms for greater international harmonisation. Industry Security: PACIA has provided leadership for chemicals members and with Federal and State governments in dealing with emerging issues of security and potential for diversion of chemicals in our current threat environment in Australia. PACIA has released a Responsible Care® Site and Supply Chain Security Guidance Note and has been working closely with government and members on security-sensitive ammonium nitrate. New MSDS code: Following the declaration by NOHSC of the new MSDS Code in April 2003, PACIA has actively worked with the chemical industry to prepare them for the new requirements which come into effect in 2006, by developing and providing training sessions on the new MSDS Code throughout the year. Key NOHSC representations: PACIA is now represented on the three critical tripartite NOHSC committees which impact on our industry – the Chemical Standards Sub Committee, the Dangerous Goods Implementation Reference Group, and the Major Hazard Facilities Implementation Reference Group. This places PACIA in a central role to influence chemical regulations nationally. Simplified chemicals regulatory framework: PACIA has actively worked with jurisdictions and union representatives to drive a NOHSC decision to integrate as far as possible the Hazardous Substances and Dangerous Goods regulations to achieve a simplified chemicals regulatory framework. This will be a major activity for PACIA moving forward as we seek to promote best practice regulation and national uniformity. National Dioxins Program: PACIA made several comprehensive submissions on behalf of the industry regarding the National Dioxins Program to ensure sound science was reflected in the final reports. The findings of these studies show levels of dioxins in Australia are amongst the lowest in the world. The Australian Government in conjunction with State and Territory governments will now be able to formulate a range of actions involving PACIA. This work is a significant scientific development and will help Australia meet its international obligations under the Stockholm Convention ratified on 20 May 2004. Review of Carrier Accreditation Scheme: PACIA’s Carrier Accreditation Scheme has grown rapidly in its four years of operation, more than doubling the number of accredited carriers in the last three years. During 2003-04, PACIA reviewed and upgraded the PACIA Carrier Accreditation Scheme, which provides a comprehensive audit of carriers against the essential elements for the safe transport of chemicals. This review improved the robustness of the scheme and removed duplication with other general transport accreditation schemes. This will drive an increased take up of the scheme by industry, further reducing audit costs and improving transport safety. Improvements in MHF and DG regulatory frameworks: PACIA has worked with Federal and State governments and industry and community stakeholders to drive improvements in chemicals regulatory frameworks, including agreement to integrate dangerous goods and hazardous substances regulations and the ongoing development and implementation of workable, consistent regulations on major hazards and dangerous goods at the State level. Regulatory Affairs networks prove effective: In 2003 PACIA launched a new Queensland Regulatory Affairs Network to provide Queensland members with an opportunity to network and be briefed on national and local regulatory issues impacting on the industry. This has proved to be extremely successful and well attended by member companies. PACIA’s Regulatory Affairs networks, which now operate in Victoria, New South Wales, Western Australia and Queensland, have grown in popularity and are recognised for the quality of written and verbal information and the calibre of external and internal speakers. These networks and the accompanying Regulatory Affairs Updates are highly valued by members. Increased demand for training courses: PACIA’s training courses on Management of Dangerous Goods and Hazardous Substances continue to be well-regarded within our industry. The program has been reviewed and refined to meet market demand and has grown in demand by 15% in 2003-04 when compared to 2002-03, particularly in Victoria and New South Wales. Illicit drugs: PACIA has provided leadership for members and Federal and State governments in dealing with the growing problem of illicit drugs in our community. PACIA has responded to emerging issues identified by law enforcement bodies and Federal Health agencies, and members endorsed the inclusion of an additional eleven chemical precursors in the PACIA/SIA Code of Practice for Supply Diversion into Illicit Drug Manufacture. This successfully avoided some of these chemicals needing to become licensed as Schedule 7 poisons. Range of submissions on HSE issues: PACIA has prepared many submissions to state, national and international agencies on HSE issues on behalf of our members to ensure the views and issues of the chemical industry are clearly understood by government. Sustainability Covenant with the Victorian EPA: PACIA has signed a Sustainability Covenant with the Victorian EPA in January 2004. Several member companies have already delivered sustainability programs under the covenant. Speakers at the PACIA National Conference also explained how sustainable business practices can bring bottom-line benefits. 2003 Safety Survey for Chemicals members: PACIA has compiled the PACIA 2003 Safety Surveys for Chemical members, which again provide valuable benchmarking data to help individual companies improve their HSE performance and share safety initiatives. Bulk Bag Working Group: The Bulk Bag Working Group was initiated by industry at an EPA workshop in 2002, and includes member representatives from Nufarm, Kodak, Huntsman, Akzo Nobel, PPG, Alcoa, Holden and industry groups, the Victorian Waste Management Association, PACIA and AiG. The working group is now seeking alternative disposal methods or recycling options for the bags, which are cost competitive with current landfill charges. Funded by EPA, the group recently commissioned a report investigating alternatives to landfill. The report outlined many options that were technically possible, especially in the area of recycling and energy recovery. However, there were no options currently available in Victoria that are price competitive with prescribed industrial landfill costs. Findings of the report have prompted the group to further investigate encouraging a market driven solution that is economically competitive. Improved plant registration scheme: PACIA successfully negotiated improved operational arrangements for plant 9 >Chemicals HSE Council “PACIA has provided leadership for chemicals members and with Federal and State governments in dealing with emerging issues of security and potential for diversion of chemicals…” registration under the WorkCover NSW Multiple Registration Scheme. PACIA led a large delegation of member companies in a series of meetings with the regulatory agency over the year. Amendments to water treatment legislation: PACIA successfully negotiated amendments to the Public Health (Microbial Control) Regulation 2000 to clarify the extent of liability on persons certifying a process of disinfection in water cooling towers. The PACIA National Water Treatment Group was active in negotiations with the NSW Department of Health over the course of the year to achieve this result. Responsible Care® Accreditation Scheme has The PACIA Responsible Care program completed its first year under the revised codes. Tasks completed during 2002-03 included: grown rapidly in its four • Publication of the report of the 2002 Benchmark Self-Assessment Program “PACIA’s Carrier years of operation, more than doubling the number of accredited carriers…” Margaret Donnan Director, Industry Development Chemicals (PACIA) • Development of a new External Verification policy. This will be introduced in late 2004 as an independent third party validation of the program • Drafting of an Importers Responsible Care Code aimed at companies whose core business is importation of chemical products • Conduct of a review of security provisions in the Responsible Care program, and draft guidelines developed on security • Establishment of a Responsible Care Coordinators ‘e-network’ 10 Community Advisory Panels National Community Advisory Panel: A new National Community Advisory Panel (CAP) was established in 2002-03 for a two-year period, comprising non-government, academic and community representatives. During the year, the CAP representatives assisted in providing a community perspective to the development of the PACIA Greenhouse Policy, as well as broadening discussion on Responsible Care initiatives such as External Verification and Security, and the emerging debate on Extended Producer Responsibility (EPR). State based Community Advisory Panels: PACIA and member companies worked with active Community Advisory Panels at Coode Island and Altona (Victoria), and Western Sydney and Botany (NSW) throughout the year. Margaret Donnan Director, Industry Development – Chemicals (formerly Regulatory Affairs Manager) Stephen Holland Stephen Holland Director, Corporate and Community Relations (formerly NSW Manager & Responsible Care Manager) Chemicals HSE Council 2003-04 Noel Williams (Chair) Dow Chemical (Australia) Limited Patrick Hanrahan Orica Australia Limited Lloyd Eldred Patrick Corporation Ltd Colin Hackett International Sales & Marketing Pty Ltd Volker Maier Nufarm Aust Ltd Cameron Schuster CSBP Limited John Power Huntsman Chemical Co Australia Pty Ltd Sarah Denny Basell Australia Pty Ltd (Appointed February 2004) Nicole Lambert GE Betz Pty Ltd (Replaced Derek Stott October 2003) Christina Sobieralski BASF Australia Limited Barry Kelly Basell Australia Pty Ltd (Appointed April 2004) Michael Wilson BOC Ltd Michael Catchpole PACIA Grant Robinson Coogee Chemicals Pty Ltd Margaret Donnan PACIA Greg Baker Qenos Pty Ltd (replaced Ivan Wilson January 2003) PACIA National Community Advisory Panel 2003-04 Ms Cheryl Batagol (Chair), Batagol Consulting Group Mr Paul Leadbeter Environmental Lawyer Ms Patricia Warn Communications/Journalist/Speech Writer Dr Mark Tweeddale Risk Assessment Consultant (resigned 2004) Dr Sue Graham-Taylor History/Conservation/Environmental, WA Museum A/Prof Kees Sonneveld Packaging Academic, Victoria University Ms Tricia Caswell Environmental/Sustainability/Academic, RMIT University (resigned 2004) Mr Guy Pearse Environmental Policy, Australian Public Strategies Prof Michael Moore Toxicologist, Qld Health Scientific Services Ms Belinda Lamb Education, National Youth Science Forum Dr Greg Simpson Scientist, CSIRO Dr Routh Beilin Office of Environmental Program, Melbourne University PACIA Ammonium Nitrate Working Group Cameron Schuster CSBP Limited Alan Rawiller Orica Australia Limited Alex Mandl Dyno Nobel Ross Martelli CSBP Limited Christina Sobieralski BASF Australia Limited Richard Morony Consultant Paul Harrison Orica Australia Limited Lloyd Eldred Patrick Corporation Ltd Margaret Donnan PACIA John Hargrave (Chair), Dow Chemical (Australia) Limited Joe Rundle Clariant (Australia) Pty Ltd Nick Munafo Ciba Specialty Chemicals Pty Limited Brian Parkinson Huntsman Chemical Co Australia John Issa Cintox Jeff Simpson Haztech Environmental Christina Sobieralski BASF Australia Limited John Frangos Toxikos Susan Birdsall Bayer Australia Pty Ltd David Winkler CSIRO Molecular Science Ken McDonald Chemoch Michael Brazel Orica Australia Limited David Bieniak Huntsman Advanced Materials Con Georgantis Atofina (Australia) Pty Ltd Margaret Donnan PACIA Efkan Koch Ciba Specialty Chemicals Pty Limited Paul Verren Asia Pacific Specialty Chemicals Ian Swann International Sales & Marketing Robert Ward DuPont (Australia) Ltd PACIA NICNAS Task Force Responsible® Care sub-committee members: Cameron Schuster (CSBP) Michael Wilson (BOC) Volker Maier (Nufarm) Vicky Dobson (ATOFINA) Terry Howell (FBT Operations) Paul Thomas (Dow) Grant Robinson (Coogee) 11 Plascare >Plastics Council PACIA delivered an environmental milestone with the policy release “Committed to the Elimination of Plastic Waste from Landfill using Supply Chain Stewardship”. Detmark introduces new recycled-content plastic bags Peter Bury Director, Industry Development - Plastics Plastics in Automotive Seminar 2004 The PACIA Plastics Council strengthened the depth and positive impact of its programs during the year in review. The successful development of strategic partnerships with other industry sectors and governments as well as the release of targeted research and policies improved benefits and services to members in Occupational Health and Safety, Product Stewardship, Innovation, Recycling and Waste Management and Training. HEALTH AND SAFETY Plascare™: The ongoing benefit to members of a targeted Occupational Health and Safety management program was once again demonstrated by the solid support and involvement in the Plascare program during the year. While covering a wide range of needs, it also continued focusing on the priority areas of manual handling and risk management. The combination of expertise and practical examples from members, state agencies and specialists provided Plascare participants with valuable information and tools to improve their own workplaces. Safety Survey: The annual safety survey was once again completed and allowed members to review their progress throughout the year. The lead indicators showed the majority of companies in the survey pool either maintained or improved their performance. This held for both the companies who had participated in the previous year’s report and the latest survey, as well as the 22 new companies participating in this survey. The benchmarking report provided the opportunity for each company to also consider its relative progress amongst its peers. Workplace Safety Audits PACIA delivered to members free workplace safety audits funded by 12 Worksafe Victoria. These audits, conducted by David Shipley and Bill McKenna, were very highly valued by members in identifying workplace occupational health and safety issues and prioritising them for corrective action. Industrial Waste Handling Guidelines The long-awaited “Guidelines for Handling Industrial Waste” were released by Worksafe Victoria during 2003. PACIA chaired a joint working party comprising EPA, Worksafe, Unions, VWMA and PACIA members to develop the guidelines which provide a valuable and practical resource for creators, transporters and processors of industrial waste. This guide is the first of its kind in Australia and can be applied by PACIA members in all States. The Plascare and Training SubTeam of the Plastics Council had responsibility for these programs and during the year evolved into the Plascare Sub-Team with the closing out of training projects. Subsequently the Plascare Sub-Team was strengthened during the year with broader membership and has developed a strategy to continue delivering OHS programs that members need. Once again David Shipley has been effective in working at the coal face with member visits and resolving a range of workplace concerns. The Plascare and Training Sub-Team during the year comprised: Kevin Sheahan (Victorian ILA and Kangan Batman TAFE; Chair, Training), Corey Quinn (RMAX; Chair, Plascare), David Armstrong (Husky), Louis Carvalho (LJ Wallace), Paul Crowe (Wickham Tooling), Terry Daniel (Viscount), Robert Fowler (Astron), Chris Howard (Engineering Polymers), Hugh McTavish (Martogg), Lindsay Pritchard (Schiavello), David Wong (Worksafe Victoria), David Shipley (PACIA consultant). PRODUCT STEWARDSHIP Elimination policy PACIA developed and delivered an environmental milestone on plastic waste during 2003 with the launch of the policy “Commitment to the Elimination of Plastic Waste in Landfill using Supply Chain Stewardship”. This sets out the contribution of plastics through the various life cycles as well as options to overcome the barriers to eliminating plastic waste at end of life. The policy has been well received by Federal and State governments and is a focal point for members developing partnerships with other sections of the product chain, governments and other stakeholders. National Packaging Covenant Covenant Council: The PACIA CEO and Plastics Manager represented the 60 member signatories at the peak National Packaging Covenant Council. One of the main tasks has been preparation for a second Covenant at a time when uncertainty exists regarding its future. The Plastics Council developed a Position Paper for NPC Mk2, the basis for negotiation with other industry and Council stakeholders, and PACIA was on the drafting team for the Consultation Proposal for Strengthening the Covenant. The Plastics Manager provided technical and advocacy support for many member companies in developing Action Plans and reports including successful advice and intervention for several companies who faced government penalty action over the past year. The Plastics Manager also provided industry support and governance over Action Plans to the Covenant Council as part of the Review and Evaluation working group. Covenant Industry Association: The CEO and Plastics Manager also represented members on the NPC Industry Association which appointed a new Public Officer, enabling strengthening of reporting and communication for signatories, including PACIA members. The NPCIA also commissioned a consultant to report on 200 Action Plans which demonstrated the achievements of signatories as well as opportunities for improvement. Program support: PACIA both introduced and supported a range of NPC projects during the year on behalf of members. These ranged from funding support at State level for market development grants, to the first national program tackling all rigid plastic packaging recycling including technical trials for Polypropylene and Polystyrene. Funding support was also provided for a Resource Map to identify the location and volume of waste materials for recycling business planning. Recycling Survey and Report. This report remains the definitive insight into the state of Australian plastics recycling and is one of the data sets most sought after and used by industry, government, research and community groups and non-government organisations both here and overseas. The report demonstrated a continued growth in plastics recycling for the fourth successive year, with the overall plastics recycling rate at 13.4% for the 2002 calendar year. Importantly, the plastic packaging recycling rate was found to be 24%. This year the report delivered further value to members with the “Polymer Re-Use and Capability Report” highlighting greater detail for the main commodity plastics. Additional reporting of results in the areas of Municipal, Commercial & Industrial and Construction & Demolition, and on the Short, Medium and Long term life cycles of products, has all added significant value for members, governments and others. PACIA’s Year 4 Action Plan was completed, accepted and further assessed as excellent by the peer governance review group. Plastics Waste Management Sub-Team of the Plastics Council managed these issues. The members are: Rod Campbell (Qenos, Council Chair), Meredith Banks (Visy Recycling), John Buckley (Viscount Plastics), Norm Cook (DuPont), Nick Harford (Visy Recycling*), Robert Fowler (Astron), David Hadley (BASF), Paul Reynolds (Polystyrene Australia), Con Stavropoulos (Basell). Members were joined for the recycling survey work by: Kathryn Fisher (REPSA), Linda Terry (Australian Vinyls) and Fiona Wilkes (PURD). (*Denotes members since retired from Sub-Team.) Waste Management and Recycling PACIA National Plastics Recycling Survey 2003: The Waste Management Sub-Team of the Council commissioned independent consultants Nolan ITU to produce the 2003 National Plastics Degradable Plastics PACIA took a leadership position with selfregulation for degradable plastics during the year. The increasing use of these materials has created the opportunity or members to grow their businesses 13 >Plastics Council PACIA took a leadership position on self-regulation for degradable plastics in a market where managing expectations is as important as managing products. At a time of uncertainty over the future of the National Packaging Covenant, PACIA provided strong representation for signatories at all levels of this key agreement. in a market place where managing expectations is as important as managing products. A strategic partnership with the Federal Government’s Department of Environment and Heritage has helped create a program targeting industry selfregulation and has released a new website and regular newsletter for objective information to all stakeholders. PACIA convened the first degradable plastic industry meeting with supply chain, recyclers, composters and governments to progress self-regulation and overcome barriers and problems. The “Common Framework for the Use of Degradable Plastics” was developed with global industry associations and adopted in Australia. Work commenced on Australian Standards with PACIA involvement in background preparation and three PACIA representatives on the newly-formed Committee. A key driver behind much of this activity has been the continuing campaigns on supermarket plastic bags. PACIA was on the steering committee which delivered the new report “The Impacts of Degradable Plastic Bags in Australia”. PACIA also ensured the scope covered the broader applications for degradables and the discussion paper released in December provided a valuable basis for product stewardship programs. LITTER The increasing concern of plastics as a major part of the litter stream has resulted in improved planning, guidance and activity in this complex area. The media and political activity around plastic bags highlights the business of litter campaigning and the evolving need for industry to engage with the right partners, conduct targeted research and assist with education for product chains, 14 governments and community groups to target litter elimination. Marine litter became another strong focus for activity and PACIA provided input and feedback into the Federal Government’s program in this area. PACIA became one of the founding members of a Global Litter Group established by international plastic industry associations to exchange information and best practice examples. This greatly improves our ability to support members with litter related matters. In the same way, PACIA has continued our sponsorship and governance support for the Victorian Litter Action Alliance (VLAA), including funding for the Victorian Litter Champion position who has established communications systems and balanced messages regarding litter behaviour and management. INNOVATION Plastics Council maintained and strengthened its support for new product development and the business of innovation. The innovation mentoring and support model reinforced work being done by the CPLG working group and increased the opportunity for the model to be adopted and a pilot program commenced. TRAINING Plastics apprenticeships Moves to address the declining skill base in the plastics industry were boosted by the planned introduction of a formalised plastics apprenticeship scheme for Victorian workplaces. PACIA contributed to a group driving this proposal, including a lobbying effort by members to state award parties. Industry Liaison Agent The Industry Liaison Agent (ILA) in Victoria provides targeted and costeffective training to chemical and plastics companies. PACIA is one of the key groups on the governance body for the ILA, funded by the Office of Training and Tertiary Education and has been pleased with the delivery of much valued training to members. Training guide The Plastics Council also developed and released for PACIA members the “Training Guide for the Plastics Industry” during 2004. This guide provides a clear understanding to members of the structure for training and the opportunities to become involved, including access to funding assistance. Plastics 101 The Plastics Manager also developed and road tested a basic Plastics 101 course for senior secondary school students. This was well received and provided an interesting outline of the history and range of polymers, their contribution to a modern, healthy lifestyle and the ways that waste is managed. New South Wales Reference Group PACIA continued to strengthen the commitment for delivering programs and benefits to members in New South Wales by implementing the NSW Plastics Reference Group. This group has already identified a range of key issues faced by members and started to develop a program to increase support using the strength of members and partnerships with government agencies. Members of the NSW Plastics Reference Group are: David Armstrong (Husky), Amanda Clifton (Le Mac), Terry Daniel (Viscount), John Germon (Thermoplastic Foam Industries), Don Parker (Anchor Plastics), Peter Stewart (Marplex), Kevin Toohill (Techplas Extrusions), Kevin Wallace (LJ Wallace), Stephen Holland (PACIA), Peter Bury (PACIA ). NATIONAL CONFERENCE The PACIA 2004 National Conference delivered two specific sessions for plastics industry members based on the work through the year of the Plastics Council. “Degradable Plastics by Design” delivered up to date advice from the Federal Government on Standards development and expectations, and design experts showed how applying good design principles can help to deliver sustainable product outcomes. Members were also brought up to speed with progress towards another National Packaging Covenant and how they can engage and have their say. Plastics Council 2003-04 Rod Campbell (Chair) Qenos Pty Ltd David Armstrong Husky Injection Molding Systems ANZ Pty Ltd Meredith Banks Visy Recycling John Buckley Viscount Plastics Pty Ltd Norman Cook DuPont Australia Ltd Ian Dagley CRC for Polymers Robert Fowler Astron Plastics Pty Ltd David Hadley BASF Australia Nick Harford* Visy Recycling Paul Reynolds Polystyrene Australia Con Stavropoulos Basell Australia Peter Bury Director, Industry Development – Plastics (formerly Plastics Manager) Mark Stevens* Austrim Nylex (Films & Fabrics) Kevin Sheahan Kangan Batman TAFE Martin Jones PACIA Peter Bury PACIA *Denotes members resigned from Council 15 >Plastics Council REPSA PURD continues to seek increased involvement from companies in the Polyurethanes sector PURD is the Polyurethanes Industry Group of PACIA PURD represents the diverse sectors in the Polyurethane Industry on significant issues affecting each sector of the industry. Current PURD membership covers most of the raw material and systems suppliers. Also strongly represented are flexible foam manufacturers and there is a good representation from other polyurethanes industry sectors. PURD was formed in the 1960s as a self-funding industry group to deal with issues of significance to companies in the polyurethanes industry. The PURD Management Council believes the industry must be represented by a strong, active, high profile industry body that can influence Governments and Regulators for the benefit of the industry. Through its membership of PACIA, PURD provides such a position for polyurethanes industry members. PURD Actions and Achievements for 2003/04 Michael Catchpole (PACIA), Tim Holding (Minister for Manufacturing & Export) and Mick Bourke (EPA) sign the Paint Back Agreement Mike Dwyer (PACIA), Mick Bourke (EPA) and John Thwaites (Minister for Environment & Water) sign the Sustainability Covenant 16 Recycling Expanded Polystyrene Australia HCFC/HFC regulation PURD has followed the passage of new legislation for Ozone Protection and Synthetic Greenhouse Gas Management and been heavily involved in consultation with the Australian Greenhouse Office as to how this will be applied to the polyurethane foam sector and its customers. PURD maintains information with regard to HCFC and HFC usage in the foam sector. Safe Handling of Isocyanates PURD conducted training on this topic and also maintains a manual of Emergency Response Information for TDI which is shared with the supply chain and emergency services. Safe handling of isocyanates is regularly discussed by PURD. Air Quality Regulations (Vic) PURD worked with the Victorian EPA to understand the new air quality regulations as they apply to the foams sector, particularly for methylene chloride and isocyanates. Furniture foam PURD considered issues regarding the furniture foam industry and met with the Furniture Industry Association of Australia to discuss issues of common interest. PURD at the PACIA National Conference 2004 PURD chaired a conference session regarding Plastics Developments in Automotive. This noted some of the achievements of the plastics industry and the challenges ahead. GGAP Proposal PURD submitted a proposal for funding for a project to look at potential reductions in greenhouse gas through increased energy efficiency, to be achieved by better use of building insulation using polyurethane. Use of this product has declined recently. PURD Membership PURD membership increased during 2003-04 and PURD also allowed companies considering membership to visit PURD meetings. PURD continues to seek increased involvement from companies in the Polyurethanes sector. All enquiries regarding PURD and its activities should be directed to: Fiona Wilkes, PURD Coordinator at PACIA: fwilkes@pacia.org.au or phone 0417 99 77 74. Recycling Expanded Polystyrene Australia (REPSA) The Expanded Polystyrene Division of PACIA, or Recycling Expanded Polystyrene Australia (REPSA), is comprised of 31 member companies from all areas of the Expanded Polystyrene (EPS) industry. From manufacturers to raw material suppliers, these companies are represented under the REPSA banner. The following committees are active within the EPS Division of PACIA: • EPS Packaging Group • EPS Panel Group • EPS Pod Group • EPS Block Group The collection and recycling of EPS from both the packaging and manufacturing sector continues to be the primary focus of the packaging group. Considerable work has been done to improve and expand on the EPS collection network operating nationally. An additional four collection sites will be established in the next twelve months in regional areas. REPSA continues to work closely with established centres to ensure service is efficient and cost effective for manufacturers and users of EPS. A joint partnership with a large electrical appliance manufacturer has been established for the collection of its EPS packaging. This trial will commence in the coming months and sets a new benchmark for companies, allowing them to take a greater role in developing environmentally responsible practices. Funding of the panel tests continues to be shared by panel manufacturers and EPS manufacturers around Australia. Through the REPSA group, promotion of the Code of Practice (COP) continues to be promoted to councils and the building sector. Since the introduction of the COP and the establishment of recommendations for the use of EPS pods on building sites, council complaints have almost disappeared and the sector continues to grow. The EPS panel division has carried out extensive fire testing to ensure the longterm use of EPS panel. Tests conducted by the CSIRO has validated the use of EPS panel as cost effective building material suitable for most building applications. The objective is to promote the responsible use of EPS and maintain its position as the preferred core material for insulated sandwich panel in the Australian Market. An additional full time staff member, Kin-Chun Ip, has joined the REPSA team to assist in the development and implementation of projects for each sector. Industry and Sustainability at PACIA’s National Conference The opening session on Industry and Sustainability at the 2004 conference was introduced by the Victorian Minister for Environment and Water, John Thwaites, and was followed by two prominent speakers – Dr Andreas Kicherer, head of BASF’s global Eco-efficiency Group, and Mr Tom Burke CBE, a prominent UK-based environmental advisor. EPA Victoria Chairman Mick Bourke joined the two speakers for a panel discussion on the key sustainability issues affecting industry. Exports, Tim Holding, and senior officials of the Department of Industry, Innovation and Regional Development after the PACIA conference. Kathryn Fisher EPS Business Coordinator Sustainability Covenants In January 2004 the Victorian Minister for Environment and Water, John Thwaites, launched a three-year Sustainability Covenant between PACIA and EPA Victoria. More than 100 people attended the launch. PACIA members who provided displays illustrating their ongoing sustainability activities included ATOFINA, Ciba Specialty Chemicals, Detmark Poly Bags, Dow Chemical, Linpac Rotational Mouldings, Shell Chemicals and the Vinyl Council of Australia. The Sustainability Covenant requires the two partners to meet defined commitments that will help improve the sustainability of the chemicals and plastics industries in Victoria. A number of successful initiatives are already underway. Cleaner Production Pilot Program Ausmalt Packaging, Bostik Findley, Camatic, Johnson Matthey Pigments & Ceramics and Viscount Plastics participated in a Cleaner Production Pilot program funded by EPA Victoria. The pilot identified a range of attractive cleaner production opportunities that will be pursued by the individual participants. Based on this experience, PACIA and EPA Victoria plan to offer an enhanced cleaner production program in future years. After the conference, Dr Kicherer conducted two seminars for BASF customers, PACIA members, government agencies and academics on June 2. The seminars generated wide interest and attracted 60 participants. Eco-efficiency is a tool to compare the end-user costs and environmental impacts of competing products. The seminars were intended to increase understanding of state-of-the-art life cycle assessment tools – one of the key commitments under PACIA's sustainability covenant with EPA Victoria. Mr Burke and PACIA Chief Executive Michael Catchpole also met with the Victorian Minister for Manufacturing and Sustainability Measurement Tools Under the Sustainability Covenant, PACIA and EPA Victoria committed to developing guidance materials and tools to help companies understand the life cycle impacts of their products and operations. The tools will be developed by the EPA in partnership with experts in the area and tested with PACIA members. The work will be funded by the Victoria Department of Industry, Innovation and Regional Development. This program was launched on July 4 at a Dulux Australia site in Melbourne by the Victoria Minister for Manufacturing and Exports, Tim Holding. Dulux, EcoRecycle Victoria and other stakeholders have been involved in Paintback™, a recycling trial designed to test the best way to safely retrieve and recycle paint from the community. Bob Muirhead Manager Sustainability Covenants 17 >Plastics Council PACIA Awards The winners of PACIA’s annual awards were announced at the PACIA National Conference 10th Anniversary Dinner at Scienceworks (Melbourne) on May 31. The Environmental Award, sponsored by CSBP Ltd, went to Echo Projects for an innovative project to remediate a badly contaminated site in Tasmania. Molding Systems ANZ Pty Ltd, went to Solar Safety Management for their range of photo-luminescent “EXIT” signs and similar products. The Health and Safety Award, sponsored by Orica Australia Pty Ltd, went to FBT Operations (Vic), for their work with Degussa Peroxide Ltd and Solvay Interox Pty Ltd to achieve best practice in safely storing, handling and distributing industrial strength hydrogen peroxide in Victoria. The inaugural Sustainability Award for Chemicals, sponsored by Dow Chemical (Australia) Ltd, also went to Echo Projects for their site remediation project. (Note: In the office environmental policy approved by the board we committed to report our environmental performance in the Annual Report. The following section satisfies this requirement.) The inaugural Sustainability Award for Plastics, sponsored by Husky Injection PACIA Office Environmental Performance Under its Sustainability Covenant, PACIA is committed to improving the environmental performance of its own operations. PACIA first developed an office environmental policy in consultation with EPA Victoria, members and the Community Advisory Panel. The policy served as the basis for developing an environmental action plan for the Melbourne office. The ecological footprint for the Melbourne The Ecological Footprint is a measure of how much productive land and water an individual or a group requires to produce all the resources it consumes 18 office was 61.1 ha (5.1 ha per employee) at the start of 2004, the baseline chosen for future performance comparisons. the office. PACIA has also purchased 5% Green Power to further reduce its office ecological footprint. Electricity consumption contributed 43% to the office footprint. Over 80% of the electricity used is due to air-conditioning and heating – the focus for improvement in 2004. PACIA already recycles virtually 100% of office waste paper, plastics, bottles and printer consumables, so further effort in this area would not reduce the office ecological footprint by a significant amount. The 2004 office action plan focuses on saving electricity by reducing airconditioner use and other power-saving measures in and to absorb all the waste it generates, using prevailing technology. EPA Victoria has developed online calculators to enable individuals, households, schools and offices to calculate their ecological footprints and identify opportunities for improvement. www.epa.vic.gov.au > Tr a d e & C o m m e r c i a l A f f a i r s C o u n c i l The council aims to add value to the business activities of PACIA Members by developing solutions The PACIA Trade and Commercial Affairs Council coordinates PACIA’s interests and involvement in industry assistance and support policies and programmes, international trade policies and commitments, environmental and energy issues and policies and general economic policy and budget issues of concern to the plastics and chemicals sectors. The council aims to add value to the business activities of PACIA Members by developing solutions to global, regional, national and state trade and business issues affecting the broader membership. PACIA Canberra Office PACIA’s Canberra office provides a contact point for Government to deal with the industry, and for PACIA members seeking access to government Ministers, advisers and senior departmental officials. left: Rod Cooper (Echo Projects) dual Winner of inaugural Sustainability Award for Chemicals and the Environmental Award Zoran Ovuka (Solar Safety Management) Winner of Sustainability Award for Plastics The Canberra Office also maintains contact with Opposition Shadow Ministry members and minor party spokespersons in relevant areas of national policy. Key portfolios of interest for PACIA include: • Trade • Industry, Tourism and Resources • Environment and Heritage • Education and Training • Treasury, and Finance The agenda during 2003-04 has been very full and activities and achievements are listed below. Bob Muirhead (PACIA), Krista Milne (EPA) and Matt Lowe (EPA) above: Tim Holding (Minister for Manufacturing & Export) opens PACIA 2004 National Conference Dr Steven Kates (Chief Economist ACCI) PACIA 2004 National Conference TRADE Australia and United States Free Trade Agreement PACIA argued strongly in its submission to the Department of Foreign Affairs and Trade (DFAT) on the US FTA that duty rates on around 90 tariff items should be phased to zero where local industry sought time to restructure. Notwithstanding consultation up to the week the decision was announced in early February, the US and Australian governments decided to move to three rates from the commencement of the free trade agreement on all but a few manufactured products. The outcome of the Agreement in relation to Rules of Origin and Anti-Dumping were consistent with the industry’s submission. Australia-China Trade and Economic Framework (TEF) Since the government announced the signing of a TEF with China in October 2003, and the commencement of the feasibility study into a free trade agreement in January 2004, Council members and the Director, Trade and Economic Policy have been committed to consultation with the Departments of Foreign Affairs & Trade, and Industry, Tourism & Resources in relation to issues of concern in the context of the negotiation and possible implementation of an FTA with China. 19 > Tr a d e & C o m m e r c i a l A f f a i r s C o u n c i l PACIA has also sought, as part of the Feasibility Study, analysis of import and export trade trends and opportunities which might have an impact on the chemicals and plastics sectors PACIA’s submission to the Feasibility Study argued the importance to the industry of: • Tariff reductions phased in over several years to enable industry to restructure • Effective Rules of Origin to avoid circumvention of duties on imports from third countries • Effective anti-dumping and other safeguard measures against increased import pressures The Council and Director, Trade and Economic Policy (DTEP) continued to consult with DFAT in relation to concerns (shared by a broad cross-section of manufacturing industry) that the commitments made by the Government in the context of the TEF, and the administration of anti-dumping by Customs, may erode much of the effectiveness of the Economies in Transition (EIT) provisions of antidumping legislation in relation to China. PACIA has also sought, as part of the Feasibility Study, analysis of import and export trade trends and opportunities which might have an impact on the chemicals and plastics sectors. Multinational Issues PACIA maintains a close liaison with DFAT in relation to the Doha Round Multilateral Trade Negotiations, with a close watching brief on progress in market access negotiations, in relation to anti-dumping and sectoral developments in relation to chemicals and plastics. 20 As a member of the International Council of Chemicals Associations (ICCA), PACIA is involved in a range of international issues and industry concerns in relation to European Union 'REACH' legislation for chemicals regulation, the Global Harmonised System and sectoral trade issues in the WTO and other fora. PACIA has opposed initiatives in the ICCA to develop a free trade Sectoral Agreement for the chemicals sector. The APEC Chemicals Dialogue provides a useful forum for the discussion of issues of concern in relation to trade in chemicals. In addition to the issues above, it also has an interest in improved transparency and reductions in non-tariff barriers in chemicals trade. In this context, PACIA has expressed a particular interest in initiatives to reduce customs clearance procedure costs and the way this is addressed in the APEC economies. INDUSTRY POLICY Anti-Dumping PACIA coordinated work with the Anti-Dumping Task Force, a network of manufacturing industry representatives and consultants to coordinate and consult with government on anti-dumping policy and administration. The task force successfully sought amendments to legislation late in 2003 to improve procedures and strengthen remedies where anti-dumping action is taken in relation to an Economy in Transition. Nuisance tariffs In its Pre-Budget submission, and in discussions with Treasury, PACIA has sought removal of the ‘nuisance’ tariffs on Tariff Concessions Orders, or TCOs. Notwithstanding commitments to do so when ‘fiscally responsible’, the nuisance tariffs were not addressed within the 2004 budget. PACIA, in association with other intensive energy user industry associations, lobbied successfully to secure policies favouring energy security and reduced greenhouse emissions, recognising that Australian industry must maintain its access to energy and will compare prices. Certain Inputs to Manufacture PACIA has developed a coordinated approach to AusIndustry in relation to duty-free concessional tariff rates available for ‘Certain Inputs to Manufacture’ where specified national benefit criteria are demonstrated. Initially this work has focused on engineering plastics and polymers. The Senate Standing Committee on Environment, Communications, Information Technology and the Arts (which reported on an ALP/Greens Bill in the Senate to ratify the Kyoto Protocol); the WA Greenhouse Strategy (March 2004), and the NSW Greenhouse Strategy (June 2004). Energy Market Reform PACIA, with other energy intensive industries, has established a standing forum with the Department of Industry, Tourism & Resources to ensure that the considerable changes to the energy market that will be introduced over the next few years will accommodate the vital interests of major energy users in the production, distribution and development of the energy infrastructure. PACIA made three submissions to public inquiries relating to environment/ greenhouse gas policy: During 2003-04, PACIA conducted two Energy Management in Practice courses, consistent with its support for the Greenhouse Challenge program. Trade and Commercial Affairs Council 2003-04 Dr Stephen Bell (Chair), Qenos Pty Ltd Ian Blandford Huntsman Chemical Company Australia Pty Ltd Murray Winstanley Australian Vinyls Corporation Ltd Stewart Murrihy Orica Australia Ltd Nick Munafo Ciba Specialty Chemicals Pty Ltd Barry Kelly Basell Australia Pty Ltd Steve Sandler Aker Kvaerner Colin Grundy Akzo Nobel Chemicals Pty Ltd Stephen Morris BASF Australia Ltd Jim Hall Marplex Australia Pty Ltd Sharon Smith KPMG (joined January 2004) Bernard Lee Nufarm Ltd (joined February 2004) ENVIRONMENT The Prime Minister’s statement on ‘Securing Australia’s Energy Future’ in June 2004 provided the Government’s longer-term commitment and strategy on energy and its approach to greenhouse gas emissions directly linked to energy production. Martin Jones PACIA (resigned May 2004) Michael Catchpole PACIA (joined May 2004) Ashley Van Krieken PACIA (resigned November 2003) Brian Gallagher PACIA (joined November 2003) 21 >External Boards and Advisory Groups PACIA staff and executives from member companies represent the interests of the industry on a range of boards, councils, committees and advisory groups. Organisation Participant Association / Company ACTDG AMSA Chemicals Operations Working Group AMSA National Plan Management Committee ACCI Environment Reference Group ACCI General Council ACCI Industry Policy Group ACCI Economic and Fiscal Committee ACCI Tax Committee ACCI Trade and International Affairs Group ACCI OHS Consultative Forum APEC Chemical Dialogue Committee APVMA Industry Liaison Committee Australian Industry Greenhouse Network (AIGN) Australian Industry Group National Environment Policy Group Australian Industry Group Environment Working Group Auto-on-Collins Bulk Bag Working Group CCI (WA) Chemical Industries, Environment Management C’tees Chemicals and Plastics Leadership Group (Chairman) Chemicals and Plastics Leadership Group Investment WP (Chairman) Coode Island Community Consultative Committee (CICCC) Coode Island Marstel Consultative Community Group Greenhouse Challenge Joint Consultative Committee Hazardous Chemical Advisory Committee (NSW) Hazardous Household Waste Advisory Group (WA) Hazardous Waste Act Policy Reference Group International Council of Chemical Associations Board (ICCA) ICCA Technical Advisory Group ICCA Trade Policy Group ICCA Trade & Environment Working Group ICCA Technical Group – Endocrine Disruption and Children’s Health Industry Taskforce on Anti-Dumping Industry Training Council (WA) Jurisdictional Recycling Group (WA) Major Hazards Advisory Committee (VIC) MHF Industry Consultative Committee (NSW) Manufacturing Industry Skills Council Manufacturing Industry Skills Council Manufacturing Learning Australia Board (MLA) Manufacturing Learning Victoria Board (MLV) National Dioxins Program Industry Reference Group National Registration Authority (NRA) NEPM Air Toxics Committee NICNAS Industry Government Consultative Committee (IGCC) NICNAS LRCC Taskforce NICNAS LRCC Working Group Robert Cairney Terry Hosken Margaret Donnan Brian Gallagher/Carlos Santin Michael Catchpole Brian Gallagher Brian Gallagher Brian Gallagher Brian Gallagher Margaret Donnan Michael Catchpole Bernard Lee Michael Catchpole Carlos Santin Carlos Santin Peter Bury Carlos Santin Margaret Mathews/Margaret Donnan Mike Dwyer Martin Jones Margaret Donnan Margaret Donnan Brian Gallagher Stephen Holland Margaret Matthews Carlos Santin Michael Catchpole Margaret Donnan Brian Gallagher Brian Gallagher Dr Roger Drew Brian Gallagher Margaret Matthews Margaret Matthews John Power Margaret Donnan Michael Catchpole David Graham Margaret Matthews Michael Catchpole Volker Maier/Carlos Santin Bernard Lee Geoff Ereaut Nick Munafo Margaret Donnan Joe Rundle, John Hargrave, Robert Ward and Margaret Donnan Margaret Donnan Margaret Donnan Margaret Donnan, Lloyd Eldred Barry Black Margaret Donnan Bryan Goodwin Robert Evans Stephen Holland Bruce Gotting Peter Bury Peter Bury David Calvert Peter Bury Peter Bury Margaret Donnan John Hargrave Dr Charles Koch Martin Jones Robert Muirhead Carlos Santin Michael Catchpole David Graham Margaret Matthews Michael Catchpole Ken Price Incitec Pivot Ltd Orica Australia Pty Ltd PACIA PACIA PACIA PACIA PACIA PACIA PACIA PACIA PACIA Nufarm Ltd PACIA PACIA PACIA PACIA PACIA PACIA Viscount Plastics PACIA PACIA PACIA PACIA PACIA PACIA PACIA PACIA PACIA PACIA PACIA Toxikos Pty Ltd PACIA PACIA PACIA Huntsman Chemical Company PACIA PACIA Huntsman Chemical Company PACIA PACIA Nufarm Aust Ltd Nufarm Aust Ltd Huntsman Chemical Co Aust Ciba Specialty Chemicals P/L PACIA Clariant, Dow, DuPont and PACIA PACIA PACIA PACIA, Patrick Corporation Huntsman Chemical Co Aust PACIA Dow Chemical (Australia) Orica Australia Pty Ltd PACIA Orica Australia Pty Ltd PACIA PACIA Caled Containers PACIA PACIA PACIA Dow Solvay Interox Pty Ltd PACIA PACIA PACIA PACIA Huntsman Chemical Company PACIA PACIA Riskom International NICNAS Existing Chemicals Review Steering Committee NOHSC Chemical Standards Sub Committee NOHSC Dangerous Goods Implementation Reference Group NOHSC Information Committee NOHSC MHF Implementation Reference Group NOHSC MHF Schedule 1 Review Group NSW EPA CAPER Reference Group NSW EPA Peak Industry Group NSW Site Auditor Accreditation Panel National Packaging Covenant Council National Packaging Covenant Industry Association National Packaging Covenant – Jurisdictional Recycling Group (Tas) National Packaging Covenant – Jurisdictional Recycling Group (Vic) National Packaging Covenant – Review & Evaluation Working Group National Working Group on the Diversion of Chemical Precursors PACIA NICNAS Taskforce Sydney Water Corp – Industrial and Commercial Customer Forum Victorian EPA Sustainability Advisory Network Victorian Litter Action Alliance Executive Victorian Litter Action Alliance Working Group Victorian Process Manufacturing Industries Training Board Victorian Process Manufacturing Industries Training Board Waste Management Board (WA) World Chlorine Council Board (WCC) United Nations Sub Committee of Experts of Transport of DG 22 >Reputation Management Council The conference presented the latest information on local and global issues affecting the plastics and chemicals industries. The Reputation Management Council has continued to work with and advise the Public Affairs division of PACIA, which is charged with managing issues and programs in conjunction with other PACIA divisions and on behalf of member companies. The Council and Public Affairs staff also have responsibility for the organisation and conduct of a range of events and the development of communications tools and strategies for all PACIA divisions. During the year in review, PACIA managed several high-profile issues, including challenges related to product de-selection. The most public of these was the continuing debate about supermarket plastic bags, but other plastic and chemical products were also the subject of campaigns by interest groups that required responses by PACIA – either through the media or as comprehensive submissions to relevant government departments and agencies. In the latter case, the Public Affairs division worked closely with the relevant industry groups to assist in the preparation of a clear industry position to be put to government. Chris Corrigan (Patrick Corporation) PACIA 10th Anniversary Dinner at PACIA 2004 National Conference Mike Dwyer (PACIA President) and John Thwaites (Minister for Environment & Water) sign Sustainability Covenant Mike Dwyer (PACIA President) launches Sustainability Covenant 2004 Open Door During the year, the Council considered the options for conduct of an Open Door event in March-April 2004 and made several submissions to the Chemicals Council regarding member support for the concept of Open Door and concerns about security issues. Following a review of security and related issues, the Chemicals Council resolved to postpone the Open Door activities planned for April 2004 and subsequently decided the event should proceed in October 2004. Council is working with member companies to develop promotional and other materials to support single or multi-site Open Door activities during October. Other events The 2004 PACIA National Conference was held in Melbourne at the end of May and was attended by more than 100 PACIA members plus representatives from government and regulatory agencies. The conference presented the latest information on local and global issues affecting the plastics and chemicals industries. International guest speakers included UK-based environment consultant Tom Burke and the head of BASF’s Global Eco-efficiency Group, Andreas Kicherer, who spoke on the topic of sustainability and eco-efficiency. The third international speaker was the senior adviser on International Chemical Policy for Bayer AG, Rainer Koch, who gave delegates an update on European chemicals regulation. Attendance at the conference by these three speakers was made possible through a grant from the Victorian Government’s Department of Innovation, Industry and Regional Development, and with the support of their respective companies and conference sponsors. PACIA members and other stakeholders also were involved in follow-up meetings and seminars coordinated by PACIA executives and the respective PACIA member companies. These follow-up meetings ensured that PACIA members got additional value and information from the conference speakers and gave PACIA 23 >Reputation Management Council The Media Management access to and enhanced credibility with a range of stakeholders, including regulators. courses have proved valuable PACIA also presented the inaugural Sustainability Awards at the 10th Anniversary Dinner held during the conference. Sponsors of the conference were BASF, Nalco, ATOFINA, Basell, Ciba Specialty Chemicals, Clariant, Coogee Chemicals, CRT Group, DuPont, Marplex Australia, Patrick Logistics and Viscount Plastics. Feedback from delegates who attended the National Conference was overwhelmingly positive and ensures that next year’s conference will again cover a range of topics that directly impact on members’ businesses. to members, with some participants…seeking follow-up advice from PACIA on the management of ongoing media coverage. The PACIA Annual General Meeting and Annual Dinner in September 2003 were addressed by Victorian Minister for Manufacturing and Exports, Tim Holding, and the Minister for Energy Industries, Theo Theophanous. These events provided members with unique opportunities to discuss industry-related issues with relevant government ministers. John Molenaar (Manufacturing Learning Victoria) Industry Training Awards 2004 Mike Brady sings Beetle Cup tribute song, PACIA Vic Golf Day March 2004 Tom Burke (Environment Consultant) and Mick Bourke (EPA) PACIA 2004 National Conference 24 PACIA’s social and networking events also were well attended during the year, with up to 100 players at each of the golf days held in NSW and Victoria and at a combined golf day in Western Australia. The 48th Annual Lawn Bowls Tournament in March again pitched the experienced players against some new blood and this event continues to grow. The Know Your Plastics training program has continued to draw strong support with courses in Melbourne and Sydney twice a year attracting individuals new to the industry and keen to learn about plastics. Management of this two-day intensive course is assisted by Plastics Pioneers and feedback from participants is always positive with numbers growing. Media and issues management This was an active year in terms of media representation of PACIA and the management of issues in conjunction with the CEO and PACIA managers. The focus was again on plastic products, including plastic bags, degradables, plastics recycling and PET bottles, with media coverage of some of these issues extending to national and local TV and radio, and major and regional newspapers and magazines. Media coverage of chemical industry activities, environment and community issues and trade and greenhouse matters also required responses from PACIA and/or assistance to member companies dealing with inquiries ranging from product recalls to site and transportation incidents. PACIA also conducted several Media Management courses for individuals and member companies to assist them to prepare for and manage media coverage of events, issues and incidents. The Media Management courses have proved valuable to members, with some participants using the course to prepare for media appearances that occurred during the year, and seeking follow-up advice from PACIA on the management of ongoing media coverage. Publications and communications Council members were consulted on the inaugural PACIA Member Directory, published in 2002, and provided input on production of the 2003 Directory. The Public Affairs division also was responsible for the preparation of several reports and other publications supporting PACIA’s programs and for the production of a CD and DVD containing presentations to the 2004 PACIA National Conference. The PACIA website is undergoing a comprehensive rebuild PACIA and its issues councils publish and manage a range of communications materials, from monthly newsletters to annual reports, directories, brochures, banners and videos. and a new-look site providing more accessible Michael Catchpole Chief Executive information for members and other stakeholders Honi Walker Manager Public Affairs will be launched in the latter part of this year. Reputation Management Council Stewart Murrihy (Chair) Orica Australia Pty Ltd Tony Jaques Dow Chemical (Australia) Limited Doug Coldham K& S Freighters Pty Ltd Carolyn Rolls Allens Arthur Robinson Patent & Trade Marks Attorneys Maureen Short Qenos Pty Ltd Sophi MacMillan Australian Vinyls Corporation Ltd (resigned 8 August 2003) Laurie David Australian Vinyls Corporation Ltd (appointed 8 August 2003) Martin Jones (PACIA) (resigned 15 April 2004) Michael Catchpole (PACIA) Honi Walker (PACIA) Charlie Woolford Visypet Pty Ltd, (resigned 5 August 2003) Gareth Widger CSBP Limited Hutch Ranck Dupont (Australia) Ltd (resigned 6 August 2003) 25 >Notes ___________________________________________________________________ Steve Holland (PACIA) and Peter Bury (PACIA) present the winning trophies to Team Basell at PACIA NSW Golf Day March 2004 Kersten Bader (Gerard Signode) Beetle Cup Winner and A Grade Winner PACIA Vic Golf Day March 2004 Team Hydrochem - Winners of the PACIA 48th Annual Lawn Bowls tournament with Martin Jones (PACIA) Martin Jones (PACIA) shows his superior bowling form at the PACIA 48th Annual Lawn Bowls tournament ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 26 PACIA Offices National Office Level 2, 263 Mary Street, Richmond Victoria 3121 PO Box 211 Richmond Victoria 3121 Australia Telephone: Facsimile: Email: Website: +61 3 9429 0670 +61 3 9429 0690 info@pacia.org.au http://www.pacia.org.au Canberra New South Wales Western Australia Telephone: +61 2 6230 6985 Facsimile: +61 2 6230 6714 Telephone: +61 2 9888 4360 Facsimile: +61 2 9888 4444 Telephone: +61 8 9335 7805 Facsimile: +61 8 9335 1617 For details of representatives in other States, contact PACIA National Office PACIA/364 Design Artwork & Print Management Richard McKellar Design 03 9866 3380 rmdesign5@bigpond.com 27 Plastics and Chemicals Industries Association INC A.R.B.N. 063 335 615 National Office Level 2, 263 Mary Street, Richmond Victoria 3121 Telephone: +61 3 9429 0670 Facsimile: +61 3 9429 0690 PO Box 211 Richmond Victoria 3121 Australia Email: info@pacia.org.au Website: http://www.pacia.org.au