Mattie McGrath warns of farm-plastics levy monopoly
Mattie McGrath spoke on farm plastics recycling and the levy system, arguing the current levy structure unfairly benefits one compliance scheme while independent operators receive no levy income. He urged the minister to meet with independent contractors and the Ministers of Agriculture and Environment to resolve what he described as a competitive anomaly and potential monopoly.
Levy distribution and recycling obligations
All suppliers of farm plastic charge a levy on sales to fund recycling, the deputy said. He stated that Irish Farm Film Producers Group (IFFPG) receives 100% of the levy but is obliged to recycle only 70% of farm plastics, while independent operators receive no levy payments.
Independent operators and market impact
McGrath emphasised that independent contractors are licensed to carry out collection, storage, washing, bailing and onward shipping of plastics but cannot collect the levy, placing them at a major competitive disadvantage. He said the current charge to farmers is £140 per tonne and warned this structure risks putting independents out of business.
Local examples and prosecutions
The deputy described cases of small operators left with stock they cannot move and cited prosecutions against local contractors. He named a number of local families and operators who have tried to collect, wash and repurpose farm plastics but received no financial support under the existing scheme.
Calls for ministerial intervention
McGrath appealed directly to the minister to meet with independent operators, Seamus May and the relevant agriculture and environment ministers, including by Zoom if necessary, to discuss the anomaly. He warned that concentrating the sector in the hands of one scheme would create a monopoly with worrying consequences for competition and the environment.
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I too am glad to be able to speak here today on this important issue. And I want to salute up and down the country all the tidy towns groups. The Angni clubs and indeed the game clubs, one of my own tree parishes, they do excellent work for habitats and restocking and everything else. I'm currently assisting a group of small independent farm plastic recovery operators in circumstances where they perceive the existence of a non-competitive structure and behaviour in the farm plastics recycling sector. And we all want to recycle and encourage our young people and Muller and Oya, Chuckie Sheet and they can teach us an awful lot. But broadly speaking, all suppliers of farm plastic, for example, silage covers, charge a levy on sales to farmers. The purpose of that levy is being to fund the recycling of these plastics. The problem for the independent operators and their goods to them, that 100% of the levy is paid to one company, Irish Farm Film Producers Group, IFFPG. This company, I'm informed, is obliged to recycle just 70% of the farm plastics but receives 100% of the levy. And independent contractors, on the other hand, receive no levy and no financial system whatever. That's very unfair. And a previous deputy mentioned the closure of the beet factories. It was a shame they closed Turles, Tune first of all, and indeed Turles and then Carlow and then Mellow. They could have been used those plants to do so much valuable work, so we should be thinking of where we're going. I also understand that currently the charge to the farmers is £140 per tonne. This clearly makes independent operators at a major competitive disadvantage. While there are a number of anomalies within the sector, IFFPG is apparently Ireland's only government-licensed recycling compliance scheme. However, a number of independent operators are also licensed to carry out the same activities as IFFPG collection storage, collecting and storing and washing and bailing and onward shipping of brown plastics. The difference appears to be that the independents cannot collect the levy. Minister, this is going to cause huge problems. And I'd appeal to you, and I respect your morning feeders, that you might meet on the DOOM a couple of days with Seamus May to discuss this serious anomaly and the unfairness. And the anomaly here is that the effect of the current structure is to put independents out of business and thereby place the entire fire and plastic sector in the hands of one monopoly. Our experience of monopoly in this country is frightening. Every day of the week we see it, so this is a hugely important issue for the environment. And I have an honour car alum, Diccan Ducey, Faroostle, or Liz Moore, Cooney Portola, who has been prosecuted at the moment. Because he has it on stock, and he's yet, and he can't move it on. So, Minister, I'm appealing to you. There are a number of these independent contractors. A very good friend of mine, well admitted, the Barrington family, indeed in Clare. They were trying to make and collect the plastic and wash it and clean it and manufacture plastic stakes, which are a great idea for green mails and everything else. So, they last forever. And using up the waste plastic, and they've got no support. So, I'm asking you, Minister, to try and look into this with the Minister of Agriculture and Minister of Environment. And please meet with this group on Zoom, obviously, and discuss this anomaly at this perilous situation that those independent good people set up the small business themselves. And now that I've been forced out of business, and even been prosecuted and intimidated by the big company. Thank you, Minister. Go raibh maith agor. Thank you. Thank you.
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