Multi-Material Recycling Program
Governance Board Composition
May 2011
Background:
On May 4, 2010, the Saskatchewan Ministry of Environment (MOE) launched the first public
consultation on the proposed Multi-Material Recycling Program (MMRP). The decision-making
authority for the MMRP will be a Stewardship Responsibility Organization (SRO), which will
oversee the development of the program plan and its on-going operation. The MOE proposed a
Board of Directors for the SRO solely composed of industry stakeholders despite the fact that
the MMRP will be funded through cost-sharing between industry (75 per cent) and municipalities
(25 per cent). The MOE proposes that the opportunity for municipal stakeholders to participate
would be through an advisory and technical committee providing non-binding advice to the
SRO.
Issue:
This issue is two-fold. First, proportional municipal representation on the SRO Board of
Directors is imperative, as articulated in our previous MMRP advocacy paper. Second, the
number and type of representatives should reflect the breadth and depth of municipal
experiences in recycling.
Analysis:
To reiterate, SUMA’s position is that municipal representation on the SRO Board of Directors is
critical. Otherwise, municipalities would have to contribute 25 per cent of the MMRP costs while
having no control over the program.
The boards of other Saskatchewan stewardship programs include municipalities. At the
Saskatchewan Association for Resource Recovery Corporation, for example, two of the seven
voting members are municipal representatives. Another example is the Saskatchewan Scrap
Tire Corporation where municipalities are represented through holding two of the eight voting
seats on the board. Our cross-Canada research shows that municipal representation is still a
common practice, encouraging multiple sectors to work together to manage stewardship
programs. This is especially true when municipal governments are required to contribute
financially. In Ontario, the Blue Box stewardship program is funded 50-50 between industry and
municipalities and is overseen by Waste Diversion Ontario, a SRO where municipal
governments appoint approximately 50 per cent of the board members.
The SRO for Saskatchewan’s MMRP will make decisions which affect how recycling operates in
the entire province. It is worrisome to us that the proposed industry-only board would not have
the voice of recycling service providers at the table. An industry-only board weakens the overall
effectiveness of the SRO.
Municipal government’s participation on the advisory and technical committees does not
sufficiently represent its role in recycling. Municipal governments are the largest recycling
service providers in the province, with decades of professional knowledge at their disposal. By
our count, well over 200 urban governments in Saskatchewan are currently engaged in
recycling activities, whether through independent recycling operations or through regional waste
authorities with neighbouring municipalities. These perspectives cannot be ignored.
The inclusion of municipal members on the board will ensure that the program provides a
holistic view of recycling, with a balanced emphasis on efficiency and effectiveness. An efficient
Multi-Material Recycling Program
Governance Board Composition
May 2011
recycling program puts emphasis on time and resources, and focuses on operating the program
with the least resources in the shortest time possible. An effective recycling program takes into
consideration the need to create value and use the best strategies to achieve its objectives.
An industry-only SRO will focus solely on efficiency. Municipal representation will emphasize the
need for an effective recycling program. The best recycling program is a program that balances
both efficiency and effectiveness. We can achieve this only through merging these diverse
perspectives -- including those of municipal governments -- on the decision-making SRO Board
of Directors. A monophyletic group, such as an industry-only board, will lead to an unbalanced
and ultimately unsuccessful MMRP.
SUMA’s position is that the number and type of representatives on the SRO Board of Directors
should reflect the breadth and depth of municipal experiences in recycling. The proposed SRO
governance model defines a nine-person board consisting of four packaged good suppliers or
representatives of their trade associations, two retail merchants or representatives of their trade
associations, two independent directors, and one representative from the newspaper industry.
As SUMA has been advocating, the simplest way to determine representation on the SRO is to
allocate seats based on the 75-25 financial contribution between industry and municipalities.
This means that municipalities should receive a minimum of 25 per cent of the seats. SUMA
believes that a 12-person board would allow for the inclusion of three municipal representatives
(and therefore be 25 per cent of board membership) while respecting the number of industry
stakeholders.
In the proposed SRO governance model, the respective trade associations would nominate their
industry representatives. Paralleling that, SUMA, as the association representing urban
governments, should have the authority to nominate urban representatives to those positions.
SUMA represents 450 Saskatchewan cities, towns, villages, and northern municipalities, many
of which provide recycling services. SUMA would nominate two representatives to the board of
directors, thereby giving voice to the full spectrum of perspectives emerging from urban
recycling experiences across the province. One of those members would represent the smaller
urban governments of towns and villages, while the other would represent cities. We
recommend that a third board member be nominated by the Association of Regional Waste
Management Authorities of Saskatchewan to reflect the complexity of delivering recycling
services on a regional basis.
Conclusion:
Municipal participation on the SRO Board of Directors is essential, not optional. Since municipal
governments will be paying for 25 percent of the program, they must have 25 percent of the say.
This proportional representation will ensure that decisions made by the SRO are practical at the
local level.
Increasing the number of members on the Board of Directors to 12 allows for the inclusion of
three representatives from recycling service providers. Drawing representatives from across the
spectrum of municipalities facilitates the balancing of the SRO so that recommendations are
efficient and effective and thereby directly contribute to the successful and sustainable
implementation of the MMRP.