The polluter pays principle, or PPP, seeks to ensure that the costs arising from environmental damage are borne by those responsible and not imposed on society as a whole. By internalising these costs, economic actors are given an effective incentive to take negative effects into account when making cho ices about production or consumption. The application of the PPP is contained in Article 174 of the consolidated Amsterdam treaty and is a specific legal requirement under various elements of EU environmental legislation.
In the area of waste management, the framework directive, 75/442/EEC, makes explicit provision for implementation of the PPP, by requiring the cost of disposing of waste to be borne by the holder who has waste handled by a waste collector. The Government recognises, as fundamental to efficient waste management, that all producers of waste should pay fully for its collection, treatment and disposal. Accordingly, application of appropriate waste service charges is both a requirement of EU legislation and consistent with national waste management policy.
The provision included in the Protection of the Environment Bill 2003 will allow for the making of different charges based on the quantity, volume or type of waste involved. It will therefore facilitate incentivisation of waste prevention, minimisation and re-use, considerations which are part of the internationally recognised hierarchy of waste management options, although also commonly associated with so-called "zero waste strategies". Waste service charges are, and under the Bill will remain, matters in the first instance for local authorities. The ability to raise income locally for the services provided by local authorities is an important aspect of the empowerment of local government.