Updated: Ombudsman asked to intervene as eco-contribution refunds fail to materialise

A company which recycles packaging waste has protested to the Ombudsman after refunds of eco-contributions paid since 2006 did not materialise.

GreenPak, a MEPA-approved, authorised compliance scheme for the recovery of packaging waste, said that in February 2008, the government had issued a legal notice entitling all companies participating in authorised schemes to be exempt from paying any eco-contributions. But not only had this not happened ,but member companies had still not received any refunds on the eco-contributions paid by them since 2006.

"The government had consistently said that participation in MEPA authorised schemes, like GreenPak, makes companies eligible for refunds,” said Mario Schembri, the company's CEO.

He said that since 2006, GreenPak had diverted thousands of tonnes of packaging waste away from landfills and towards recycling, surpassing Malta’s national recycling targets.

“In Malta, we have the unfair and abnormal situation where environmentally friendly bona fide companies are made to pay twice by the government, resulting in unnecessary higher cost of living. On the other hand, if the government honours its promise to refund eco-tax, recycling in Malta will flourish. Regrettably, month after month, the government continues to procrastinate on its promise,” Mr Schembri added.

In a reaction, the Resources Ministry said this evening that the government would in the coming weeks issue a legal notice establishing the criteria on eligibility for eco-contribution refunds.

The government, however, wanted to make it clear that not all producers/importers who were members of GreenPak would be eligible for the refund.

The legal notice would include a schedule of the refund which would be calculated on the basis on the volume of the material that was recycled. The total refund would be given when the scheme confirmed that 80% of the material was collected and recycled at the expense of the member, not the government. Therefore, audits would have to be conducted on those who declared they were members of such schemes.

Referring to the GreenPak claim that members were being charged double, the government said it was spending €30,000 per month on the collection of separated waste. The success of GreenPak and other schemes could be calculated only on the basis of how the government’s spending was reduced, but to date there had been no reduction of any kind.

The ministry said it was incorrect to say that MEPA authorised schemes were automatically entitled to refunds.