ACCC proposes to approve recycling system for floor coverings

ACCC proposes to approve recycling system for floor coverings

A product stewardship program for recycling flooring waste has come one step closer.

The Australian Competition and Consumer Commission (ACCC) proposes to grant ResiLoop approval to establish and operate a voluntary, industry-led program to collect and recycle waste from resilient flooring.

ResiLoop has applied for approval for a period of six years on its own behalf and on behalf of its members and participants in the program.

Resilient floor coverings are floor coverings made from natural mineral fillers in combination with materials such as vinyl, linoleum or rubber.

In Australia, approximately 60,000 tonnes of resilient flooring waste is generated each year, with almost all of this waste going to landfill. Yet there is no industry-wide resilient flooring waste collection and recycling program in Australia.

The program is financed by a product levy of 15 cents per square meter and is levied on certain categories of resilient floor coverings.

The product tax is passed on along the value chain (e.g. by a direct reference to the amount of the product tax and the relevant products included in the purchase on the invoice).

ACCC Commissioner Liza Carver said the levy was unlikely to significantly affect competition and represented only a minimal proportion of the total retail cost of resilient flooring to the consumer.

“The program is likely to result in environmental benefits by diverting resilient flooring waste from the landfill and reusing it instead,” she said.

“Research and development into the effective use of resilient flooring waste, as well as pricing that better reflects disposal costs, are likely to encourage proper disposal and increased recycling of resilient flooring under the program.”

The ACCC has granted ResiLoop provisional approval to commence the waste products program, which will enable ResiLoop to gain a repeat customer.

“The conclusion of an agreement in principle will strengthen confidence in the feasibility of the new product stewardship programme and encourage further industry participation,” she said.

“It is important that ResiLoop considers ways to include broad supply chain representation in the program and be part of the advisory board.”

ResiLoop will report annually on the progress of the program.

The ACCC is seeking comments on the draft decision by Friday 30 August 2024 before making its final decision.

For further information please contact ResiLoop Limited

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