For the first time, the Scottish Environment Protection Agency (SEPA) is to monitor how a £3.1 million direct investment into the Scottish recycling infrastructure is being spent by accredited reprocessors and exporters in Scotland. The money was invested last year by companies obligated under the Packaging Waste Regulations.

This is the first year that SEPA have required accredited reprocessors to disclose how much money they have obtained from the sale of Packaging waste Recovery Notes (PRN's) and how it has been invested. It is intended that this direct investment be used to expand collection of packaging waste, increase the reprocessing capacity and develop markets for products made from recycled packaging waste.

This investment has been made as part of a UK wide move towards increasing recovery and recycling of packaging waste as required by the 1997 Producer Responsibility Obligations (Packaging Waste) Regulations.

Karen Riddick, who heads up the SEPA Producer Responsibility Unit, explains:
"One of the concerns about the PRN system, was the lack of transparency on the amount and use of PRN revenue. As a result, the regulatory agencies, SEPA and the Environment Agency, amended their statutory guidance to require reprocessors to give details on how much money has been generated from the sale of PRN's and what this money was being used for.

"SEPA is currently visiting all accredited reprocessors and exporters with a view to verifying the information given on the PRN revenue returns."

• The regulations in the UK require all UK companies who have a turnover exceeding £2 million and who handle more than 50 tonnes of packaging each year to fulfill certain recovery and recycling obligations. Most companies do this by buying PRN's from SEPA accredited reprocessors and exporters of packaging waste.
  
• In 1999, there were 18 reprocessors and 4 exporters in Scotland, accredited by SEPA to carry out recovery and recycling of packaging waste. A total of 360,000 tonnes of packaging waste was reprocessed by these businesses and the sale of associated packaging waste recovery notes has raised a total of £3.1 million.
  
• It is estimated that around 1 million tonnes of packaging waste is produced in Scotland each year. Under the EC Directive on Packaging and Packaging Waste, the UK must recover and recycle at least 50% of packaging waste by July 2001.
  
• The National Waste Strategy: Scotland was launched by SEPA in December 1999, and provides a framework within which Scotland can reduce the amount of waste which it produces and deal with the waste which has been produced in more sustainable ways.
  
• Copies of the report can be obtained from SEPA Public Relationson 01786 457700, or by e-mailing them on publicrelations@sepa.org.uk