Reviewing the PSA

Reviewing the PSA

Waste Management Review explores the Product Stewardship Act review and industry expectations for the final report. 

Since the Federal Government Product Stewardship Act (PSA) was introduced in 2011, the dynamics of the waste and recycling sector have changed dramatically locally and overseas.

Waste management and resource recovery businesses have been forced to adapt and so has legislation and state and territory policy.

Product stewardship is a waste management strategy designed to ensure shared responsibility for the health and environmental impacts of a product through all stages of its lifecycle.

The PSA outlines three levels of regulation: mandatory, co-regulatory – joint industry and government delivery and voluntary.

There are currently no mandatory schemes under the PSA and just one co-regulatory scheme, the National Television and Computer Recycling Scheme (NTCRS).

When the act commenced, two voluntary schemes were accredited, MobileMuster and Flurocycle. MobileMuster has recently renewed its accreditation for a further five years.

Outside of the act there are a number of industry-run national product stewardship schemes with Australian Competition and Consumer Commission approval including Paintback, Tyre Stewardship Australia and DrumMUSTER.

The act was required to be reviewed by the Department of the Environment and Energy five years after commencement and in 2017 that time came. Waste Management Review talks to industry stakeholders about gaps in the present scheme and the potential for improvement.

THE REVIEW

Following submissions from interested parties, the Department of Environment and Energy’s official consultation paper, released in March 2018, outlined five areas of reference.

First, the review would attempt to assess the extent to which the PSA’s objectives were being met and whether they remained relevant. Second, it would address the effectiveness of voluntary scheme accreditation and the minister’s annual product list, followed by an evaluation of the operation and scope of the NTCRS.

Additionally, the paper highlights an assessment of how the PSA interacts with other federal, state and territory policies and how international and domestic experiences of product stewardship could inform more effective legislation.

“If the review finds legislative changes are warranted, work to implement the changes, including refinement of options, regulatory impact analysis and development of regulatory amendments would be undertaken in 2018-19, subject to the minister’s agreement,” the paper reads.

According to National Waste and Recycling Industry Council (NWRIC) CEO Rose Read, problems stem not from the legislation, but from a lack of federal and departmental leadership.

“The lack of leadership in implementing the act has resulted in five, and soon to be seven, different container deposit schemes rather than a single national policy – plus inconsistent state bans on plastic shopping bags,” Rose says.

“The failure to address these two product groups at a national level under the PSA has increased implementation and compliance costs for all involved governments, producers, retailers and service providers.”

Additionally, Rose says government has provided little encouragement to companies seeking accreditation or promotion of existing schemes.

“The continued belief by the previous Federal Government that schemes should be voluntary reflects a lack of commitment or understanding of what is required to deliver an effective product stewardship scheme,” Rose says.

“Very few industries can implement these schemes without some basic regulation to ensure a level playing field for these companies.”

Rose says following the review, the NWRIC would like to see amendments to voluntary clauses, to enable a clearer pathway to accreditation. She adds the NWRIC would also like to see more government support and promotion for participating organisations. Rose hopes the Federal Government’s $20 million Product Stewardship Investment Fund will be adequately resourced to put appropriate regulatory frameworks in place.

TELEVISION AND COMPUTERS

The NTCRS was established alongside the PSA in 2011, with the aim of granting households and small businesses access to free industry-funded collection and recycling services.

According to Rose, over 94 per cent of importers contribute to the program, which covers more than 140 companies. She adds the collection rate for televisions and computers has jumped from 18 per cent in 2011 to over 62 per cent in 2018 as a result of the scheme.

“The companies involved in the program are investing an estimated $25 million a year to provide this service,” Rose says.

“On average, around 35 million products within the scope of the scheme are imported each year. That translates to an estimated average cost of $0.70 per unit imported.”

In 2017, the government engaged the Australian Continuous Improvement Group to undertake an evaluation of the NTCRS. It was designed to inform the official statutory review, and at the time of print, is the only published outcome.

The evaluation deemed the scheme largely efficient, but raised concerns over industry pricing and scaling factors.

“NTCRS was designed to allow multiple co-regulatory arrangements, so liable parties and recyclers are able to shop around for the best commercial deal,” the evaluation reads.

“In the opinion of stakeholders, prices have dropped, at least partially, as a result – raising concerns that services and standards are being compromised, particularly when it comes to downstream services.”

Ewaste Watch director and co-founder John Gertsakis says the NTCRS, which has recycled approximately 230,000 tonnes of electronic waste since it began, is one of the more successful elements of the PSA.

John says while the scheme is successful, there is still significant scope for improvement in the areas of community awareness and education, improved access in regional areas, and better collaboration between the co-regulatory arrangements.

According to John, several stakeholders have asked for the NTCRS to be expanded to include batteries and a range of additional electronic products.

“The community is absolutely ready for effective regulation where there are no industry funded schemes,” he says.

“The solution for batteries, in my opinion, is a regulated scheme under the PSA.”

Rose and the NWRIC agree and have called for a regulated scheme for batteries by 2020.

“The NWRIC would like to see the scope of the NTCRS broadened to include all products with a cord or battery, consistent with the recent Victorian e-waste ban and a separate regulation for batteries,” Rose says.

John suggests the NTCRS could be also be useful mechanism for sustainable solar photovoltaic panel (PV) management.

In 2016 PV systems were added to the PSA’s priority list, meaning they were being considered for scheme design. Sustainability Victoria is conducting research into the viability of a system of shared responsibility.

Sustainability Victoria’s Director of Resource Recovery Matt Genever says work on assessing stewardship options for PV systems is well underway.

“We’ve consulted broadly across industry and government and there is genuine support for a stewardship approach that will build a sustainable PV recycling market in Australia,” Matt says.

Matt says that the delays in reviewing the PSA by the Federal Government have caused some issues.

“This is an area of waste policy that absolutely needs strong leadership from the Commonwealth, as it can’t just work on a state-by-state basis. Product stewardship is one of the few areas that has national legislation and it’s clear that in its current state, the act isn’t delivering to its full potential.”

BATTERIES

Battery Stewardship Council (BSC) CEO Libby Chaplin highlights independent research that shows a voluntary scheme with light regulation to address free riders would be the most effective and viable option for batteries.

According to Libby, a proposed battery stewardship scheme is currently out for public consultation. She adds that in December 2018 all state, territory and federal ministers agreed all batteries must be included in the proposed scheme.

“We are keen to see a rapid improvement of this unacceptably low battery collection rate and have proposed a different approach to other schemes,” Libby says.

Libby says BSC’s proposal would run on an importer levy of four cents per equivalent battery (24 grams) and leverage existing collection channels.

“We are working on a rebate model, whereby members commit to a number of quality, environmental and safety requirements and then eligible for scheme funded rebates,” she says.

“This approach will now be the focus of consultation beyond BSC members, with an application for Australian Competition and Consumer Commission authorisation scheduled later this year.”

Libby says that establishing a battery stewardship scheme is essential, whether voluntary or regulated.

PRIORITY PRODUCTS

One of the PSA’s key devices is the annual product list, which outlines goods that might come up for scheme consideration the following year.

According to the PSA review consultation paper, publishing the list serves two purposes. First, it provides certainty to community and the business sector about what is being considered for coverage. Second, the act requires a 12-month notification for a class of products to be considered for accreditation or regulation.

Despite this, the list provides no promise of action and while the PSA requires an explanation of why a product has been added, it does not require an explanation for why a product has been removed.

Soft Landing Mattress Product Stewardship General Manager Janelle Wallace says the accreditation process is a good concept. However, she doesn’t believe it has been well marketed.

Janelle says the act doesn’t acknowledge the costs to local government of managing more complex and often hazardous waste streams, including mattresses, at landfill.

Soft Landing’s submission to the review made multiple recommendations, including a greater focus on durability during product design and wider consideration for the extended supply chain, from raw materials to consumers.

According to Janelle, Soft Landing would also like to see more consideration of bulky and inconvenient waste.

As a voluntary scheme, Tyre Stewardship Australia (TSA) has committed $4 million towards market development initiatives. It performs an accreditation and compliance program which focuses on the verification of the scheme across its 1700 participants. However TSA CEO Lina Goodman believes there needs to be more intervention from government.

“Whilst TSA has made significant in-roads within its verification, accreditation and market development programs, the heavy lifting associated with waste tyres remains in the hands of eight tyre importers,” Lina says.

She says the scheme can go only so far without government support or intervention, encouraging government to consider addressing the issue of free riders.

“The time is now for regulatory intervention that will address free riders. Some tyre importers are enjoying the benefits of the scheme without taking responsibility for the product they distribute to market.”

She says that this will have a positive impact and assist in switching the focus on local innovation that will drive greater consumption of material for domestically engineered products.

When speaking with Waste Management Review, Waste Management and Resource Recovery Association of Australia CEO Gayle Sloan called the current PSA a “toothless tiger”.

“There are not enough schemes in operation and developing models for products such as batteries takes far too long,” Gayle says.

“The Federal Government needs to step up, lean in and drive change – there is a lot of opportunity to improve.”

Gayle says an issue with the current PSA is a lack of extended producer responsibility. She adds the system places problematic waste accountability squarely on the resource recovery industry.

“When a product enters the market, it needs to be recyclable, repairable or reusable,” Gayle says.

“Anything that doesn’t fall within those definitions via readily available structures needs its own source separation system, which needs to be funded by those who brought it to market.”

Additionally, Gayle says there needs to be a complete paradigm shift on voluntary schemes.

“The industry needs to be really honest with itself about what is working and what isn’t. Structural change will not occur by funding individual organisations.”

Equilibrium conducted an analysis of the cost of mandatory product stewardship schemes on consumers for the Australian Council of Recycling (ACOR).

The analysis made approximations based on standard product unit types and estimated that mandatory schemes would cost consumers up to $1.85 for e-waste, $16.50 for mattresses and $4.00 for tyres.

ACOR CEO Pete Shmigel says the new data shows consumers can recycle products and items affordably.

“In all cases, the cost of recycling these items is likely to be lower than two per cent of their consumer price. Therefore, cost concerns should not be a key barrier to action by our policy-makers,” he says.

Brooke Donnelly, Australian Packaging Covenant Organisation (APCO) CEO, says the Product Stewardship Act review is an important and timely piece of work, and APCO supports the Federal Government’s efforts. Brooke says APCO believes all organisations must ultimately take responsibility for the products they create. However, there are a range of ways these systems can be delivered.

“To move forward, we need to take an agile approach that explores a range of alternative models that are best suited to fix specific material/product challenges and the external environment in which they operate,” Brooke says.

“We must look beyond the populist rhetoric and really test the value and impact various approaches can provide in a systemic and considered way. Fundamental to effective product stewardship is to ensure equality, accountability and transparency across the various approaches.”

THE MINISTER’S PERSPECTIVE

Drawing on his experience as President of the National Retail Association, Assistant Minister for Waste Reduction and Environmental Management Trevor Evans says industry is best placed to understand the complexities of product stewardship.

When asked by Waste Management Review whether government was in a position to reveal whether it was looking into developing more mandatory schemes, Trevor said not yet.

“There is always a debate around the nature of the scheme, in terms of whether they are industry-led, voluntary or mandatory. It is very much a ‘horses for courses’ approach,” Trevor says.

“Mandatory schemes are one option, but they are not the only policy tool that government has in its arsenal.”

Trevor says the final report with recommendations is expected to be presented to the meeting of environment ministers towards the end of the year.

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