Written Answers. - Recycling Industry Development.
Mary Harney
Ceist:
231
Miss Harney
asked the
Minister for Enterprise and Employment
the support, if any, he intends to put in place to encourage the recycling industry in view of his refusal to extend the manufacturing industry tax rate to this industry; whether he will support the extension of the business expansion scheme, Forbairt assistance to recycling; and if he will make a statement on the matter.
[5646/96]
Mary Harney
Ceist:
238
Miss Harney
asked the
Minister for Enterprise and Employment
his views on the need to encourage the significant expansion of the recycling industry in view of the fact that it is generally a high risk industry which benefits the country through employment and import substitution; the plans, if any, he has to allow the extension of the business expansion scheme and Forbairt support to this industry; and if he will make a statement on the matter.
[5645/96]
I propose to take Questions Nos. 231 and 238 together.
The points raised by the Deputy in these questions involve matters which are for the Department of the Environment and the Department of Finance as well as my own Department. Following consultations with those Deparments I would like to respond as follows.
The recycling industry has certainly grown in importance in recent years. There are various initiatives in operation to support recycling activities. The Minister for the Environment has operated a grant scheme to support recycling activities since 1989. The grants support capital expenditure on systems for the collection and segregation of waste materials for reprocessing or re-use. This scheme is directed mainly at small-scale commercial and voluntary operators. The Waste Management Bill, which will shortly be enacted, will provide the Minister for the Environment with extensive powers to promote the prevention, recovery and safe disposal of waste. The national recycling strategy, "Recycling for Ireland" published in 1994, has placed the promotion of recycling high on the Government agenda. I understand that the Minister for the Environment will publish a review of the strategy in the near future to guide and give impetus to the full development of recycling in Ireland. A welcome development in the recycling area is the recently launched REPAK scheme. REPAK is a new organisation, which will be established, run and funded by industry to co-ordinate and finance the recycling/recovery of packaging waste. REPAK has set itself a target recycling rate of 27 per cent for packaging waste to be achieved by 2001. I understand that the funds collected will be used in REPAK to contract out the collection, sorting and recycling of packaging waste.
As regards the suggestion to extend the business expansion scheme (BES) to the recycling industry, the Deputy will be aware the BES scheme was due to terminate during 1996 but, after a review of its operation and performance in 1995, the Minister for Finance announced in the recent budget that it would be renewed. The BES has traditionally been targeted on the manufacturing sector since this is regarded as the riskiest area of economic activity offering the highest potential jobs return. Accordingly, if an activity qualifies as a 10 per cent manufacturing industry then it is generally within the scope of the BES. Given the cost of the BES to the Exchequer, any extensions to the scheme, to include industries other than manufacturing industries, have to be considered in the context of the existing costs and the need to ensure at all times that Exchequer resources, particularly tax reliefs, are targeted on those areas that offer the highest likely return in terms of the costs of the relief involved and overall economic objectives.
As regards the suggestion to extend Forbairt support to the recycling industry, the Deputy will be aware that Forbairt only provides financial assistance to developments which are based on the use of waste as a raw material, and which are used to produce products in a traded sector. Projects must satisfy normal commercial criteria and they are considered on their merit by Forbairt on a case by case basis. Forbairt also provides assistance under the feasibility study grants programme to assist companies to investigate market opportunities for recycled products.
In addition, financial assistance to support waste recovery, waste recycling and the development of waste infrastructure will be available under the Solid Waste Management Sub-Programme of the Operational Programme for Environmental Services 1994-99 which will be administered by the Department of the Environment. The Minister for the Environment, will I understand, shortly be in a position to announce details of this scheme.
