Irish government accused of ignoring private sector
Minister outlines local authority investment but concerns remain over distribution of the Environment Fund
02 Dec 2009
The allocation of over €5 million from the Irish Government during the first half of this year to fund local authority civic amenity sites has sparked concerns over the distribution of the Environment Fund across the public and private sectors.
John Gormley, minister for the environment, heritage and local government announced this week that €5.6 million was distributed between January and June 2009 to help councils meet the costs of running their bring banks and civic amenity sites.
Speaking to RWW on the distribution of the fund, Robert O’Shea, secretary of the Irish Waste Management Association (IWMA), said: “The way it gets sorted out is quite vague as there are
quite a lot of projects now calling themselves climate change projects.
“There is the double worry that it will disappear back to the Department for Finance.” He added: “We are operating in the dark at the moment. You can see why the Department for Finance is interested in such a fund – it’s approximately €50 million a year – that’s a lot of money given to local authorities. It’s unclear sometimes where the money comes and goes.”
O’Shea called for the money to remain an “environmental” fund that is available to both the public and private sectors. He also said that there isn’t a criteria when it comes to selecting projects.
Minister Gormley said that the allocations were the same as in previous years, on a combination of weighted tonnage and net operating costs, with particular emphasis being given to the higher costs of dealing with certain waste streams such as hazardous waste and plastics.
The funding ranged from Dublin City Council receiving the largest grant (€678,675) to Longford County Council in receipt of the lowest amount (€19,300).
The grant was provided from the Environment Fund, which is boosted from revenues generated in
landfill tax and the plastic bag levy. This funding is used to support waste management, litter and other environmental initiatives.
A spokesperson for the department of the environment, heritage and local government, said: “The Revenue Commissioners collect receipts for the Plastic Bag Levy on behalf of the department and all Plastic Bag Levy receipts together with Landfill Levy receipts are paid into a ring fenced Environment Fund, which can only be used to support projects or initiatives of benefit to the environment.”
Throughout 2007 the Landfill Levy generated €32,398,929 and the Plastic Bag Levy generated €22,577,535. Combined this meant the Environment Fund totalled €54,976,464 for the year. The Environment Fund Annual Accounts 2008 have yet to be published.
An industry source told RWW: “We believe it [the fund] has to be shared equally between the public and private sectors. Essentially, the fund is not being allocated equally – we have to make sure this happens – it could be done in a way that does not distort the market. Where we see the money being delivered is a market sector programme – a cross sector development.”
The source said the programme could work for Ireland like WRAP (Waste & Resources Action Programme) works for England.
He added: “The fund gathers a lot of money and we see that it should be going back in a way to benefit everybody. The logic is that the Environment Fund is funded by the landfill levy and plastic bag levy, which consumers pay. The issue here with funding only the public sector is that it distorts the market. What I would like to see is a level playing field.”
Gormley said: “The funding represents an increase of €600,000 on the equivalent period in 2008. This increase demonstrates my determination, even in these times of economic difficulty, to continue to provide support for measures aiding the recovery and recycling of waste.”
The minister added: “Even in this difficult economic climate it is vital that we manage our waste in the most environmentally friendly way possible and I would encourage all local authorities to continue delivering the full range of waste management infrastructure required.”
The announcement followed the minister outlining a review of Ireland’s waste management policy last week that proposed an increase in landfill tax and the introduction of an incineration levy (see RWW story).
The report suggested that landfill tax should be increased to €30 per tonne by 2010, to €50 in 2011 and €75 in 2012. An incineration levy, which was criticised by the Confederation of European Waste to Energy Plants as “flawed”, could be in the range of €20 to €38 per tonne.
Across the border, Northern Ireland recently benefited from the opening of a £6 million in-vessel composting facility, which was backed by WRAP to the tune of £1.5 million.