PaintCare
Paint Product Stewardship
As presented to the Retailer & Specialty Distributors Forum
14 August 2014
Product Stewardship
In June 2013 waste architectural and decorative paint (Paint)
was listed as a priority product under the Product Stewardship
Act (2011) by the Commonwealth.
Key reasons for the listing were:
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Sold in a national market and contains hazardous substances which
have the potential to harm the environment
•
Disposal of paint involves a significant cost to government
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Waste paint is a high volume component of household hazardous
waste collections
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Potential to increase the recovery of resources and to reduce impacts
on the environment through the better collection and recycling
Product Stewardship
• Product Stewardship requires industry to take
responsibility for it’s waste either on a voluntary, coregulated or regulated basis
• Regulated/Co-regulated schemes recognised as being
onerous, less cost effective and result in industry
stakeholders having less scheme control
• Significant advantages in running a Voluntary scheme
• Industry greater influence over design
• Commercially sustainable outcomes
• To achieve a Voluntary scheme we must work together
Voluntary Scheme
Objective
To collect and process unwanted residual paint products from retail
consumers and trade painters at fixed locations and mobile sites funded
through an industry applied levy collected at the warehouse gate.
Scheme Key Attributes
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actively seek to achieve better environmental and cost efficiencies
create an excellent brand equity and scheme awareness
provide a transparent operation with robust stakeholder governance
aim to minimises “free riders”
funded by an ACCC approved Levy
operate within all relevant legislative frameworks
Scheme delivered by a new independent not for profit body
‘PaintCare Australia”
Paint Collected
Key points
For first 5 years :
• Accepted - architectural and decorative paint (including woodcare)
from Retail and Trade sources sold in containers from 1L up to 20L
(both plastic and tinplate packaging).
• Not Accepted - Spraypacks, bagged render, isocyanates, paint
strippers, thinners, industrial and anti-fouling paints.
Paint Collected
Key points
Coverage :
• Stage 1
- 70% population coverage (within Year 2)
• Stage 2
- 75% population coverage (Years 3 – 4)
• Stage 3
- 85% population coverage (Years 5+)
Use of fixed locations including existing collection points
supplemented with mobile collections
* Coverage based on % population that has a collection site within 20km (metro)/40km (regional)
PaintCare Brand
• PaintCare logo style and user guide for actively
participating paint companies and retailers.
• PaintCare logo phased in on paint packaging.
• Availability of PaintCare POS advertising & literature.
• PaintCare web-site detailing all collection information
with high visual presence of participating retail and paint
manufacturer company brands.
Scheme Funding
How it works
• Levy charged by paint manufacturer’s based on Levy/L
• Sales* reported to independent third party
• Paint manufacturer then invoiced based on sales
• Payment made to PaintCare (non-for-profit
administrator of the scheme)
• All financial transactions auditable / annual audit report
* Sales for paints under the scheme
Levy
• Scheme to be funded by an ACCC approved Levy
• Levy range (fixed over 5y) 12 – 15 cent/L*
• Modelling to generate the proposed Levy calculation to be
reviewed by a third party and approved by the ACCC
• Multiple stakeholder sign-off of cost modelling
• Competitive costing compared to overseas schemes
* Levy will also incur GST
Levy - Tax Invoices
• Paint company invoices to include separate line
indicating total Levy charged for scheme paint
• Levy charge will be clearly visible on invoice separate
from unit paint cost
• Paints in the scheme indicated on invoice
• Levy charge incurs GST
Levy - Retailer
We anticipate that the Retailer
• Will pass the Levy through to the consumer
• Promote the scheme through ‘in-store’ advertising
with support from PaintCare
• Become a ‘touch point’ for the consumer on the
scheme backed up PaintCare support
Levy – Consumer
• It is anticipated that Retailers will pass through Levy to
end consumer ensuring a ‘user pays’ model
• Further ‘Willingness to Pay’ (WTP) focus groups to be
conducted
• WTP learnings to be fed into communication and
broader PaintCare strategy
Levy - Free Riders
• Over 90% of paint volume covered by participating paint
manufacturers in the scheme
• Scheme is Voluntary but….
• PaintCare brand equity and awareness to encourage
participation
• Participating Retailers to work and encourage paint
manufacturers & importers to join scheme
• Active ongoing communication to all retailers/paint
brand owners who are not engaged
Efficiencies
Cost and environmental efficiencies
Through a Voluntary Scheme:
• actively create service provider competition (tenders)
• investigate through R&D alternative end uses for waste
paint to drive better environmental and cost outcomes
• continuously benchmark against world’s best practice
Governance
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Scheme run by PaintCare (not-for-profit)
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Headed by a CEO, reporting to the PaintCare Board
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Board consisting of key stakeholder representatives
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Annual reporting / independent auditing
Timings
Implementation during latter half of 2015 pending:
• Final scheme definition and operating model
• Reclassification of Trade waste paint
• ACCC levy review and approval
• Waste paint collection points established per roll-out
strategy
Key points
• A Voluntary Scheme is the best option
• Scheme to be funded by an ACCC approved Levy
• Stakeholder engagement and participation is key to
the success of the PaintCare program
• We seek your ongoing feedback, questions and input
Contact Details
Mr Richard Phillips
Executive Director
Australian Paint Manufacturers’ Federation
Phone 02 98761411
richard.phillips@apmf.asn.au