Swru022008 Mil Tek Neil Holland


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The Economics of Waste - Neil Holland - Mil-Tek

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  • Swru022008 Mil Tek Neil Holland

    1. 1. Waste Management in the Rural Sector South West Rural Update Sandy Park – Exeter 19 th February 2008 Neil Holland – Mil-tek Direct Re-cycling & Waste Management
    2. 2. The Mil-tek Presentation <ul><li>Why Re-cycle </li></ul><ul><li>Perception of Waste </li></ul><ul><li>Legislation Drivers </li></ul><ul><li>Customers & Businesses </li></ul><ul><li>Costs and Revenues </li></ul><ul><li>Case Study </li></ul><ul><li>Open Forum – Q & A Session </li></ul>
    3. 3. How waste is perceived <ul><li>A necessity in Business – Waste has always been back of house, low cost, low visibility </li></ul><ul><li>Unglamorous - None of the attractions of IT, HR or finance </li></ul><ul><li>Low priority - no great need to change the way waste is handled. </li></ul><ul><li>INCREASED COST HAS CHANGED PERCEPTIONS </li></ul>
    4. 4. Typical waste management c.2001
    5. 5. What changed? <ul><li>Legislation leading to an end to the UKs dependence on cheap access to landfill </li></ul><ul><li>Landfill infrastructure running out fast </li></ul><ul><li>Public perceptions of waste and recycling changing </li></ul><ul><li>Re-cycling can save Business money </li></ul>
    6. 6. The EU Landfill Directive 1999 <ul><li>Made the environmental case for reducing landfill disposal. </li></ul><ul><li>Set binding targets to reduce the volumes of waste member states send to landfill. Fiscal penalties for non-compliance. </li></ul><ul><li>Introduced new requirements for landfill site operators to make provision for maintenance of the sites long after operations cease. </li></ul><ul><li>Pre-treatment - finally introduced in the UK in October 2007 </li></ul>
    7. 7. Landfill Tax <ul><li>Introduced in 1996 </li></ul><ul><li>Larger increases since 2007 budget – now a major driver of the increase in waste costs </li></ul><ul><li>Politically neutral </li></ul><ul><li>Still very low in UK relative to our EU neighbours - eg Ireland </li></ul>
    8. 8. Landfill Tax <ul><li>2003 =£14 </li></ul><ul><li>2004 =£15 </li></ul><ul><li>2005 =£18 </li></ul><ul><li>2006 =£21 </li></ul><ul><li>2007 =£24 </li></ul><ul><li>2008 =£32 </li></ul><ul><li>2009 =£40 </li></ul><ul><li>2010 =£48 </li></ul><ul><li>By 2012 total landfill costs could be well over £100 / tonne </li></ul>
    9. 9. Public perception – image is everything to some !
    10. 10. Public perception <ul><li>Consumers increasingly exposed to higher levels of domestic recycling </li></ul><ul><li>The next generation of consumers will be even less tolerant of organisations who fail to recycle </li></ul><ul><li>Organisations employing best re-cycling practices will enjoy positive PR and reputation </li></ul>
    11. 11. Can we value aesthetic cost of waste?
    12. 12. Waste disposal in the UK is still very cheap <ul><li>Domestic waste costs lumped in with Council Tax – hides the true cost </li></ul><ul><li>Landfill rates in other EU member states is much higher </li></ul><ul><li>Both households and business should expect large increases in the cost of disposal. </li></ul>
    13. 13. Recycling will cease to be optional <ul><li>Commercially essential to reduce costs </li></ul><ul><li>Consumers will demand best practice </li></ul><ul><li>Legislative barriers to old methods of disposal (Packaging Regs & Pre-treatment already introduced) </li></ul>
    14. 14. Many firms still aren’t ready <ul><li>Research carried out by the EA recently suggests that a third of small businesses aren’t aware of the requirement to pre-treat their waste - that’s up to 1.6million firms who could be breaking the law and are potentially liable to EA fines. Netregs 2007 </li></ul>
    15. 15. Recycling is no longer optional ! <ul><li>A quote from an accountant in the Daily Telegraph in response to the pre-treatment laws (source KPMG) </li></ul><ul><li>“… the first step towards making it illegal not to recycle” </li></ul><ul><li>Daily Telegraph 15 November 2007 </li></ul>
    16. 16. Recycling adds ££££s <ul><li>Every tonne of material removed from the landfill stream saves the organisation upwards of £50.00 </li></ul><ul><li>Some recyclable materials command revenue – cardboard and plastic, metals, textiles, EPS </li></ul>
    17. 17. Why would you put it into landfill?
    18. 18. What happens when there is too much recycling? <ul><li>Consumer demand for recycled products </li></ul><ul><li>Many recyclables are derived from finite resources - plastics from oil </li></ul><ul><li>Pressure on land use for pulp – more profitable to grow food or fuel crops. </li></ul><ul><li>Low cost of shipping recycled goods to areas of high demand (far east) from western consumer economies </li></ul>
    19. 19. Case Study <ul><li>Care Home </li></ul><ul><li>40 Bedroom </li></ul><ul><li>No Re-cycling </li></ul><ul><li>4 1100 Wheelie Bins twice a week </li></ul><ul><li>1 X Clinical Waste once a week </li></ul><ul><li>Can Mil-tek save this Care Home Money ? </li></ul>
    20. 20. Is it Financially Viable ? <ul><li>Clinical Waste – No change </li></ul><ul><li>Current costs £10.00 per bin - £80.00 p.w. </li></ul><ul><li>Reduction of 75% </li></ul><ul><li>All Cardboard, Newspapers, Paper, most soft plastics, Tins, Cans & PET Bottles removed from land-fill stream </li></ul><ul><li>Equipment less that £20.00. Plus £20.00 for 2 Bins – Savings Over 4K per annum </li></ul>
    21. 21. <ul><li>Cost </li></ul><ul><li>Public Perception </li></ul><ul><li>Health & Safety Issue </li></ul><ul><li>Save Space/Storage </li></ul><ul><li>Customer Expectations </li></ul><ul><li>Change in Legislation </li></ul><ul><li>Current Affairs </li></ul><ul><li>Global Warming </li></ul>Prioritising Recycling?
    22. 22. Mil-tek Re-cycling & Waste Management <ul><li>Open Forum – Q & A Session </li></ul>