A new company has been formed to administer the processing of industrial packaging waste. Unigreen Environmental Ltd (UE) is a not for profit company, with the Federation of Industry, the GRTU, the Chamber of Commerce and Enterprise and the Malta Hotels and Restaurants Association as shareholders.

Plastic, cardboard and metal will be collected from homes as from April 1, in grey plastic bags that will be available through local councils. (Glass will still have to be taken to bring-in sites because of safety concerns).

UE will operate from temporary offices at the chamber and a CEO is in the process of being recruited.

The original idea had been for a company to be set up by the major bottlers to collect and recycle plastic bottles once the derogation on glass-only expired at the end of last year. This, however, encountered resistance and was dropped. The four constituted bodies then spent eight months in negotiations with the ministries of finances and the environment to find a solution.

"It was hard to come up with an acceptable solution as the members have conflicting interests. But there was goodwill on all sides and an agreement was finally reached," the vice-chairman of the FOI's environmental committee Mario Duca said.

UE will operate a voluntary scheme whereby members will pay a fee proportional to the volume of the packaging they produce (whether manufactured by them or imported). This amount is already being reported to the Malta Environment and Planning Authority in line with the legal requirements. Companies that join the scheme will be exempted from eco-contributions.

The revenue generated will be used to pay for part of the collection of domestic waste by local councils. Recyclable waste is estimated to make up as much as 40 per cent of its volume.

The way the scheme has been designed, the stakeholders are projecting that the new system can be run more cheaply for the benefit of the scheme's members. Any excess income from the scheme will be returned to members in the form of reduced memembership fees.

Companies that do not want to join the scheme may still use other waste collectors, as long as they are registered with the Malta Environment and Planning Authority. There is only one other official collector at present but others may be interested if there is sufficient demand.

"Obviously we hope that the members of the four bodies will join our scheme as the larger the volumes, the better the economies of scale," committee chairman Godwin Micallef said.

UE will be a clearing house, collecting the revenue from the members and subcontracting the collection and processing of the waste. The recycling of glass and cardboard are not commercially viable in Malta, but that of plastic and metals is.

"You have to take into consideration the cost of collecting, processing and transporting to overseas recycling sites. Unfortunately, for glass and cardboard the cost is not worth it... The important thing is that it is collected separately and does not end up in the landfill," committee vice-chairman Mary Gaerty explained.

Once the CEO has been appointed, UE will start to calculate the costs involved so that membership fees can be established.

The FOI's environment committee was set up 15 years ago on the initiative of Mr Micallef, to make industry aware of its environmental obligations, existing or future.

It organises regular seminars and was involved in consultative bodies such as MEUSAC, as well as in the run-up to the adoption of relevant EU legislation. It also finalised the first voluntary agreement betwen industry and the drainage department for the gradual phasing out of the discharge of effluents into the sewage system, which staved off more draconian measures.

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