Status of this Submission This Submission has been prepared by the City of Armadale. The City of Armadale is a Local Government Authority located approximately 30 kilometres south east of Perth, Western Australia. The City covers an area of 545 square kilometres and has a population of approximately 65,000 which is expected to grow to 85,000 over the next ten years. The City of Armadale is a member of the Rivers Regional Council however the views of the Regional Council may differ from the positions taken in this submission. The City of Armadale operates the Hopkinson Road Landfill and Recycling Facility located in the suburb of Hilbert. In 2004 the City began to separate electronic waste from the solid waste stream that would otherwise be destined for landfill. In 2008 the City took the decision, due to a lack of reliable electronic waste recyclers locally, to become the first Local Authority in Western Australia to dismantle electronic waste. 353 tonnes has been removed from the waste stream. The City funded this through the collection of gate fees, rates and funding from the State Government. In 2010 the City received $98,161.10 in funding from the Western Australian State Government Waste Authority’s, Strategic Waste Initiatives Scheme (SWIS), to support the expansion of the City’s electronic waste dismantling operation. Due to the short consultation period and the meeting schedule of Council and its Committees, it has not yet been possible for this submission to be endorsed by the Council. This submission will be presented to Council on Monday, 19th December 2011 and the Department will be informed of any changes to this submission following consideration by Council Executive Summary The City of Armadale believes the burden of managing end of life electronic equipment should not fall on Local Government and supports the Federal Government’s proposed Extended Producer Responsibility approach. The City provides the following recommendations that: The Regulations should reduce the number of individual product codes that service providers are required to classify products into. The products should be reduced to 4 or 5 key categories for collection and dismantling with numbers and total weights recorded. After dismantling a nett weight balance be maintained until final material recovery is achieved; The Regulations specify that approved co-regulatory arrangements will have the obligation to accept all tonnages of eligible products collected at an approved collection point; and, The Regulations should not differentiate between commercial and household usage if recycling costs have been covered at point of purchase. Collection costs must be covered by the liable parties if there is to be no charge at the collection point That the Material Recovery Target for printers and computer products and the television class of products be increased to 90% to reflect highest material recovery rates service providers are already achieving. And, that additional targets for computers are added which include targets for the recovery of individual materials and/or components. That the Regulations include additional detail or controls as to how an administrator may appoint service providers ensuring that it is not anticompetitive to current processors and ensures a competitive market place. That the Regulations encourage community involvement in the recovery and processing of waste products. 1.04 – Application Schedule 1 – Products and product codes The regulations provide no less than 74 individual products and product codes in to which electronic products manufactured and collected must be classified. Manufacturers and importers are able to classify products into product codes with relative ease given they know the specifications of the products and the number imported or manufactured. On the resource recovery side, it is potentially very difficult and very labour intensive for a service provider to accurately determine which product code an item of electronic waste should be attributed to, given the number of codes and the wide variety of products in the marketplace. Errors will be made in this respect, puts a huge reporting burden on small service providers and will be impossible to audit once dismantled. The potential for false claims will be high. Dependant upon how a service provider receives payment for the processing of eligible products, there is also the potential for misleading product codes to be deliberately used to increase tonnages collected for individual products in some classes. In particular, where the ‘other’ product code in some classes has a higher conversion factor than some of the products in the class and given that selecting the ‘other’ product code would be less time consuming than determining the actual product code. Reducing the number of product codes that service providers are required to classify products into would reduce the likelihood of errors and reduce the burden on service providers. The products should be reduced to 4 or five key categories for collection and dismantling with numbers and total weights recorded. After dismantling a nett weight balance be maintained until final material recovery is achieved. Auditing will be possible. Recommendation: The Regulations, where possible, reduce the number of individual product codes that service providers are required to classify products into. 2. Division 3.1 – Outcomes 3.01 – Outcomes Section 3.01 2) a) states “a person must not be charged for the collection of a product for recycling if the product was used only for household purposes…”. The City has been collecting electronic waste at a fixed collection point since 2004 and in 2010 collected electronic waste from the verges of residents. The cost involved was funded from landfill gate fees and residential rates for waste services. It is assumed, under this section, that the liable parties will be responsible for covering collection costs. Determining household and commercial use of a product at the collection point is extremely difficult. If the commercial entity has paid for the product to be recycled at point of purchase there should be no differentiation. Recommendation: The Regulations, should not differentiate between commercial and household usage if recycling costs have been covered at point of purchase. Collection costs must be covered by the liable parties if there is to be no charge at the collection point. Division 3.3 – Recycling 3.04 – Working out recycling targets Given the massive volume of electronic waste in the community which could potentially be recycled, the City is concerned that the target amount could be exceeded. The regulations are unspecific about how this excess tonnage would be handled. It is accepted that section 3.05 – How recycling targets may be met, makes provision for additional tonnages collected in one financial year to be carried forward to meet up to 25% of the next financial year’s target. This provision alleviates some of the City’s concerns, however, if this situation arises it will effectively reduce the tonnage available for collection the next financial year. The City believes that the Regulations should specify that approved co-regulatory arrangements will be obliged to accept all tonnages of eligible products collected at an approved collection point. Turning residents away once targets have been reached is not an option. Ewaste will either be collected at collection points or from the roadside. It appears Local Government will be the default collector one way or another. Without such a guarantee it is unlikely that the City would be comfortable participating in the scheme. Recommendation: The Regulations specify that approved co-regulatory arrangements will have the obligation to accept all tonnages of eligible products collected at an approved collection point. Division 3.4 – Material recovery from recycling 3. 3.06 – Material recovery targets The City believes that the 75% material recovery target would have a negative impact. The City is currently achieving a material recovery rates in excess of 90%, with the more expensive labour intensive dismantling. The 75% target is low and accommodates service providers using cheaper mechanical means of separation and does not encourage them to improve. A target this low could see these recovery rates become the industry norm to remain competitive. The 25% waste would contain most of the materials that need to be removed from landfill. In addition, the target of 75% can easily be reached for computers by recycling the entire unit as steel and without any dismantling or separation of higher value commodities. Such a target for computers may inhibit the most effective recovery of resources. Creating a separate target for individual materials for computers alone would encourage more effective recovery of materials. The Regulations do not provide an incentive for manufacturers to design products which can be completely recycled or dismantled efficiently. A low target may encourage manufacturers to use cheaper non-recyclable materials whilst still achieving material recovery targets. Increasing the material recovery target is one way to promote better and more sustainable product design. Recommendation: That the Material Recovery Target for printers and computer products and the television class of products be increased to 90% to reflect highest material recovery rates service providers are already achieving. And, that additional targets for computers are added which include targets for the recovery of individual materials and/or components. 4.01 – Matters to be dealt with by co-regulatory agreements The City is concerned that the Administrator of a co-regulatory agreement has the sole power to determine the service providers used without any obligation to use transparent or competitive purchasing principles. This potentially has the ability to affect free competition in the marketplace and gives the Administrator the power to remove waste supply from some processors, effectively removing their source of income. If a single service provider was selected this would create a monopoly removing all competition from the marketplace. The City believes that it is unlikely that the liable parties would accept this as is not in their best interests. Recommendation: That the Regulations include additional detail or controls as to how an administrator may appoint service providers ensuring that it is not anticompetitive to current processors and ensures a competitive market place. Matters not covered by the regulations The processing of recyclable material provides an opportunity for small communities and non profit groups to participate in the material recovery. This provides several benefits: An employment opportunity to small communities and non profit groups; A funding opportunity to community groups; and Indirectly educates the community on recycling by having them involved. 4. In rural areas the Department of Environment and Conservation is pushing to have all landfills manned. The unit cost to local communities/Councils is high considering the numbers of residents using the facility over a given time. Offsetting the labour costs with additional activities such as recycling during slack periods would be a benefit to the community, commercially and environmentally. Community involvement in the ewaste recovery and recycling process will lay the foundations and set up a network for the inclusion of future items covered under Product Stewardship Regulations. This will be significant in remote areas. Recommendation: That the Regulations encourage community involvement in the recovery and processing of waste products. 5.