Environment Minister Dick Roche has come a cropper over new regulations that make it mandatory for the suppliers of white goods to accept and recycle old equipment. Before the regime was introduced in mid-August, Mr Roche assured the public there would be no price increases as a consequence of the new measures and that retailers would not be allowed to pass on recycling costs. That has not happened. The pledges given by the Minister have been ignored. And consumers are paying higher prices.
The Consumers' Association of Ireland acknowledges that the majority of retailers are now passing on recycling charges. This has happened in spite of its advice that customers should shop around and walk away from those outlets where the charge had been added to the normal cost of goods. In some instances, there was evidence of profiteering where new prices exceeded the charges for recycling.
The response by the Minister has been inadequate, to say the least. The department has threatened to "come down hard" on those retailers who exploit the new waste disposal charges for profit. And there lies the nub of the issue. For retailers insist they are acting strictly within the law in passing on the new environmental charges and are not making higher profits.
The intention behind the EU directive - that the producers of white goods should absorb the cost of recycling - has been circumvented. The cost of dealing with waste materials has not, as the Minister insisted, been built into the cost of production. That may happen in the future when the major manufacturing EU economies, like Britain, Germany and France, sign up to this directive. In the meantime, however, most retailers are ignoring the Minister and are passing the cost directly to consumers.
Mr Roche has attempted to make the best of a sorry mess. He has drawn attention to the environmental benefits that will be gained from ending the indiscriminate dumping of white goods. And he has insisted any price increase for consumers will be minimal. Does he know that for sure? The Minister already disagrees with retailers over recycling charges and the cost of implementing the directive. There is little certainty about anything. And enforcement issues may yet fall to Enterprise, Trade and Employment Minister Micheál Martin. It is no wonder the Consumers' Association is seeking an urgent meeting with Mr Roche to tease out these matters. In rushing to introduce the new directive, he failed to bring the retailers with him. Consumers are now paying the price.