DEFRA launches investigation into PRN fraud allegations

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Added: Wednesday, 3 March 2004

DEFRA officials have been asked by Environment Minister, Elliot Morley, to investigate the alleged fraudulent issuing of plastics PRNs (Packaging Waste Recovery Notes) and PERNs (Packaging Waste Export Recovery Notes).

This is the second stage of investigations into allegations of fraudulent issuing of PRNs and PERNs, following on from last year’s investigations in the wood recycling sector. The investigations into the plastics sector were prompted by the apparent dramatic increases in plastics recycling from 2001-2 and 2002-3, resulting in the allegations of inappropriate PRN and PERN issuing.

Investigations into the plastics sector will follow an adapted format due to the large number of accredited reprocessors. Some reprocessors will be invited to attend workshops at local Agency offices, whilst others will be visited by officials such as Agency inspectors, auditors and governmental representatives.

The investigation will take place in conjunction with the Department of Trade and Industry (DTi), the Scottish Executive, the Welsh Assembly Government, the Northern Ireland Administration, the Environment Agency, the Scottish Environment Protection Agency and the Environment & Heritage serivce in Northern Ireland.

Andrew Simmons, Recoup CEO, said, “This enquiry is welcomed but is overdue. A fair market for PRNs is an essential precondition for investment and growth in recycling. We have consistently highlighted concern about the difficulties in reconciling plastic plastics PRN reported data and ‘on the ground’ activities. It is vital that this enquiry provides a clear explanation for these anomolies, which have lead to concern amongst recyclers.”

“We will press for this enquiry to provide sufficient scrutiny so that these differences can be understood and explained. Recoup and, I am sure, other plastic packaging recyclers, will be pleased to contribute to work to ensure an efficient and fair market for PRNs.”

The investigation is due to be completed at the end of May.