Retailers: Public Deserves a More Transparent 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.
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.
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