Packaging: Fees and Charges
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she has made an assessment of the potential impact of the impairment fee under the extended producer responsibility scheme on future impairment costs.
Answered by Mary Creagh
The impairment provision is based on the bad debt experience of Defra with charging schemes that are most similar to pEPR, whilst taking into consideration the large values of some of our Notice of Liabilities. It will be subject to regular review based on past, current and future customer payment behaviours. To minimise the impairment and provide transparency, PackUK intends to collect debt rigorously but fairly and will review the impairment provision at least quarterly.
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