Proposed amendments to packaging Extended Producer Responsibility to cover street binned and littered packaging waste in Wales: Regulatory Impact Assessment (Draft)
This draft Regulatory Impact Assessment (RIA) should be read in conjunction with the consultation document.
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Options
The options considered are:
- Option 1A. Flat rate litter fee to all producers
- Option 1B. Focus fees on commonly littered items
- Option 1C. Hybrid solution
- Option 2. Keep the status quo (no litter fees)
For more details on the options, please see the consultation document.
Costs and benefits
Estimated costs and benefits are shown in the table below. For options 1A and 1C, the figure of £14.7m is based on Welsh Government commissioned research by Waste and Resources Action Programme (WRAP), indicating the total costs to local authorities in Wales of collecting packaging litter (both ground litter and in public bins). The costs for option 1B are based on 64 per cent of the cost of 1A, which is the share of packaging litter that is estimated to be comprised of commonly littered items.
| Annual costs and benefits | Option 1A | Option 1B | Option 1C | Option 2 |
| Costs to businesses | £14.7m | £9.4m | £14.7m | £0 |
| Costs to public sector | Negligible | Negligible | Negligible | £0 |
| Costs to society | - | - | - | - |
| Total costs | £14.7m | £9.4m | £14.7m | £0 |
| Benefits to businesses | - | - | - | - |
| Benefits to public sector | £14.7m | £9.4m | £14.7m | £0 |
| Benefits to society | Unknown | Unknown | Unknown | - |
| Total benefits | £14.7m | £9.4m | £14.7m | £0 |
| Net impact | £0 | £0 | £0 | £0 |
For options 1A, 1B and 1C, there are additional costs that would fall on producers of packaging, and additional benefits that would fall to local authorities. These would be recurring costs and benefits annually. The net impact of all costs and benefits is zero for all options.
There would also be a one-off cost to the public sector of implementing the changes, which has not been quantified but is thought to be negligible.
Potential benefits to society may include a reduction in littered packaging, but this has not been quantified. The outcomes of the consultation regarding effectiveness will need to be considered, in order to assess the benefits to society in terms of litter reduction.
The Welsh Government has not yet chosen an option. The preferred option will be informed by the consultation responses.
Competition Assessment
The proposal will affect producers of packaging.
A competition filter test has been carried out and found that the proposal is unlikely to have a significant detrimental impact on competition.
| Question | Answer yes or no |
|---|---|
| Q1: In the market(s) affected by the new regulation, does any firm have more than 10% market share? | Yes |
| Q2: In the market(s) affected by the new regulation, does any firm have more than 20% market share? | No |
| Q3: In the market(s) affected by the new regulation, do the largest three firms together have at least 50% market share? | No |
| Q4: Would the costs of the regulation affect some firms substantially more than others? | Yes |
| Q5: Is the regulation likely to affect the market structure, changing the number or size of firms? | No |
| Q6: Would the regulation lead to higher set-up costs for new or potential suppliers that existing suppliers do not have to meet? | No |
| Q7: Would the regulation lead to higher ongoing costs for new or potential suppliers that existing suppliers do not have to meet? | No |
| Q8: Is the sector characterised by rapid technological change? | No |
| Q9: Would the regulation restrict the ability of suppliers to choose the price, quality, range or location of their products? | No |
9. Post implementation review
If appropriate, explain how the effect of the subordinate legislation is to be monitored and whether/how it will be reviewed.
Post implementation review establishes whether implementation of the subordinate legislation is having the intended effect.
The RIA should be used as the starting point for the review. The review should establish a baseline and include the success criteria against which the effectiveness of the legislation in delivering the objective will be assessed.
An indication must be given of when the legislation would be reviewed to establish the actual costs and benefits and whether it is achieving its desired effects. It is often a good idea to review after three years but this will depend on the legislation.
To be completed post implementation.