In favour of an open and honest packaging deposit system created in the interests of consumers and the public, the Latvian retail industry has developed nine principles for the considered and effective introduction of the system.
Major market participants have introduced those involved with implementing the system —beverage manufacturing representatives, waste managers, the Ministry of Environmental Protection and Regional Development, as well as informing the Saeima Committee—to the main principles and position they have developed, inviting them to integrate these principles into legislature in the interests of the Latvian public.
There are currently concerns that the system is being created in a hurry, and that the current system model places the burden of cost on the shoulders of the public, not fully taking into account the interests of society.
To ensure a fair and open deposit system, the main principles which retailers believe should be integrated into the deposit initiative are system accessibility, transparent costs confirmed by the Public Utilities Commission, balanced representation of retailers and manufacturers, a varied packaging collection model, and the principle that the polluter pays, rather than the public via retailers.
The 9 principles of an open and honest packaging deposit system:
- The polluter pays.
- A deposit system which is accessible to all inhabitants of Latvia.
- Transparent costs and balanced representation.
- 50% voting rights for retailers to reduce costs.
- Costs confirmed by regulator.
- One stop.
- Free market and fair competition.
- Variety of packaging for deposit.
- Educating and starting a dialogue with the public.
“Although some industry participants wish to operate without a deposit system, the retail industry understands the potential significance of this system at a national and EU level. Currently, the industry has doubts over whether the hurriedly-created deposit system had considered the burden of cost and division of responsibility, as a result of which consumers will have to pay. This threatens to be a repeat of the Mandatory Procurement Components scheme under a green banner. We do not accept a deposit system which fails to take into account public interest and transparent management principles. Wishing to be certain that the packaging circulation model is, first of all, consumer- and public-friendly, the industry has developed nine basic principles for an open and honest packaging deposit system to be included in legislation,” explains Henriks Danusēvičs, President of the Latvian Traders Association.
“Our customers’ interests are our priority, which is why we are in favour of a transparent deposit system model developed in the interests of the public. Retailers play a decisive role in the successful operation of a deposit system, so as a responsible industry participant, we support the principles of a fair deposit system with well-considered responsibility, a wide variety of packaging available to deposit, and an operating system which is convenient for customers,” adds Maxima Latvija Board Member Jānis Vanags.
Support for the introduction of a deposit system according to these nine principles has already been expressed before their publication by leading participants in Latvian retail: Maxima Latvija, IKEA, Kurši, Depo, as well as, according to the Latvian Traders Association, Mego and others.
It is expected that, after the publication of these principles, other retailers will join in supporting them.
AN OPEN AND HONEST PACKAGING DEPOSIT SYSTEM
9 PRINCIPLES
1st principle. The polluter pays.
Latvian retailers support the packaging circulation model and agree that it must be a priority both on a national and European Union level. It is particularly important to bear in mind effective waste management and processing which involves a clear and unambiguously specific responsibility for the creation of waste. In the case of packaging deposits, polluters are defined as the manufacturers who must take on the burden of the cost.
2nd principle. A deposit system which is accessible to all inhabitants of Latvia.
A deposit system is created so that packaging (bottles, PET, cans) is accepted both near retail locations (up to 150m), at petrol stations, and at local council service centres, to ensure that Latvian residents have the most convenient access to the deposit system possible.
3rd principle. Transparent costs and balanced representation.
The deposit system operator must be a non-profit organisation with at least 50% retailer representation. The deposit system must not be created at a cost to the public. The gains brought about as a result of cost effectiveness, including unused deposits, estimated to reach several million EUR every year, must be diverted back to reducing the direct costs of operating the deposit system.
4th principle. 50% voting rights for retailers to reduce costs.
Retailers have a decisive role in creating and operating an effective deposit system. Consumers must be offered a pleasant, clean, hygienic shopping environment at a reasonable cost. To achieve this, retailers must have at least 50% representation in the deposit system operating Board. 50% Board representation will help to avoid a situation in which the costs of the deposit system are subsidised by the public.
5th principle. Costs confirmed by regulator.
Deposit system operating costs, including running costs for retailers and participation in a paid deposit system, must be confirmed by the regulator (the Public Utilities Commission) to ensure a well-founded, open assessment of the costs.
6th principle. One stop.
Receipts for the deposited packaging are used as a payment method in the retail location in which it was received. This is a secure, practical and effective solution which won’t create additional system costs.
7th principle. Free market and fair competition.
Packaging collected as part of the deposit system must be processed at the best possible price in the free market, ensuring fair competition and reduced costs.
8th principle. Variety of packaging for deposit.
The deposit system must include all packaging that can possibly be collected, bearing in mind hygiene requirements and the technology available (for example, if the deposit system involves the collection of glass beer bottles, then glass bottles used for spirits must also be included). The deposit system must be open, so that the initial packaging types can be constantly added to as technology develops.
9th principle. Educating and starting a dialogue with the public.
New public habits have to be created based on education and dialogue. To implement this, the management of the deposit system must allocate certain funding for educating the public.
More information:
Jānis Beseris
Head of Corporate Affairs
SIA Maxima Latvija
Tel. 29666603
