Recycling scheme hits impasse over levy

Fairfax

RECYCLING REBOOT: Efforts to establish a recycling scheme for unwanted computer equipment have hit a stumbling block.

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Efforts to establish a recycling scheme for unwanted computer equipment have hit a stumbling block, with "two or three" multinational computer manufacturers refusing to support a system under which they would pay a levy on imported computers.

Computer companies met this month to discuss a secret proposal that set out how a "product stewardship scheme" for the IT industry might work.

Consumer Electronics Association executive director Garth Wyllie, who has been overseeing efforts to establish separate schemes to prevent televisions and computers being dumped in landfills, says the proposal generated "a fair bit of discussion".

"The real outcome was there was very strong agreement we need to do quite a bit more work before it can be put out in the public domain.

"At this stage, it is very much 'wait and see' to see what comes out of it."

Mr Wyllie says "the major brands" would prefer to meet the cost of recycling their own unwanted equipment, along with their fair share of any unclaimed "orphan" equipment, once it was dropped off at collection points.

But it is understood some of them are pushing for local assemblers to pay a levy or bond upfront, because of the risk that small assemblers might go out of business and leave it to others to pick up their recycling bills.

Locally owned computer assemblers very strongly favour an advance levy, but only so long as it is "equal and fair", says Mr Wyllie.

They fear they could be forced out of business if they had to meet the costs of recycling their PCs upfront while the major brands were allowed to pay only as waste was collected.

"That is where a large amount of debate is going to be."

A law that would let the Environment Ministry force manufacturers to take part in product stewardship schemes – or impose schemes of its own – is awaiting its third reading in Parliament. Mr Wyllie believes the Waste Minimisation Bill is likely to receive its final vote on August 27 or September 10.

Television manufacturers, unlike computer companies, have agreed to pay an advance levy on imports and Mr Wyllie is hopeful that a stewardship scheme for TVs will be in place next year.

He says an advance levy would also "appear to be the simplest option" for computers and he is not sure why overseas-owned computer manufacturers have not taken the same approach.

He does not believe they are engaged in delaying tactics. "If they don't agree to something, the ministry, once the legislation is through, will be in a position to say they will put a scheme in place, which they may or may not like."

Any stewardship scheme is likely to add at least $30 to the average price of a personal computer.

The Computer Access New Zealand Trust is meanwhile searching for additional sponsors to support a series of e-waste collections that it hopes to hold around the country in October, saying it does not expect a product stewardship scheme to be in place for the computer industry for two or three years.

Canz hopes to collect 1000 tonnes of e-waste from collections in 30 towns and cities, where consumers will be able to drop off unwanted computer equipment for free. EDays will be held in Wellington, Masterton, Nelson, Napier and on the Kapiti coast.

Chairman Laurence Zwimpfer says the Waste Minimisation Bill is making good progress in Parliament. "EDay is helping plug the gap and buy New Zealand a little more time without generating new problems in our landfills."

But Mr Zwimpfer warns it may not be realistic for the Environment Ministry to expect the IT industry to agree voluntarily on the details of a product stewardship scheme.

"This is not an industry that works well collaboratively," he says.

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