October 2019

PRN price continuing concerns - Joint Industry Letter

Rebecca Pow MP
Parliamentary Under-Secretary of State
Department for Environment Food and Rural Affairs
Seacole Building
2 Marsham Street
London
SW1P 4DF
27 September 2019
Dear Minister,
Joint industry letter on further PRN price concerns
On behalf of the retail, food and drink manufacturing, and packaging manufacturing industries may we congratulate you on your appointment as Parliamentary Under-Secretary of State. You have taken on a critical remit at a time when decisions are required that will have a major influence over businesses, society and the planet now and for years to come.
One of the most pressing issues facing the consumer goods industry at present are the huge price increases this year for Packaging Recovery Notes (PRNs). These are adding tens to hundreds of millions of pounds to compliance costs in 2019 without any evidence that the additional money is being used to improve the recycling system. Unless swift action is taken the economic viability of some firms will be under real threat.
Since writing to your predecessor nearly three months ago, prices for plastic and aluminium PRNs have remained very high despite some indications that they may fall. The situation is now becoming acute for the industry as we approach the year end with some businesses recording a 10-fold increase in plastic PRN prices from last year. This price rise is both unbudgeted and unsustainable for businesses, adding major financial pressure at a time when significant resources are required to prepare for leaving the European Union.
Given that the situation has now become business critical for our members we seek an urgent meeting with yourself at your earliest convenience to discuss the impact and our proposed solutions.
Yours sincerely
Andrew Opie
Director Food & Sustainability
British Retail Consortium (BRC)

Ian Wright CBE
Chief Executive
Food and Drink Federation (FDF)

Philip K. Law
Director-General
British Plastics Federation

Leendert den Hollander
Chair, Packaging Working Group
Food and Drink Sector Council

Gavin Partington
Director General
British Soft Drinks Association

Dick Searle CCMI
Chief Executive
The Packaging Federation

Martin Kersh
Executive Director
Foodservice Packaging Association

Stuart Foster
Chief Executive Officer
RECOUP

Robert Fell
Director and Chief Executive
Metal Packaging Manufacturers
Association

Rick Hindley
Executive Director
ALUPRO

Jon Clark
General Manager
BPIF Cartons