VMA WARNS ON PACKAGING REGULATION
The VMA’s new Labels and Packaging Coalition has told the federal government that any new fibre-based packaging regulations should align with international standards, or else local industry will face ‘devastating’ consequences.
The Coalition, comprised of industry experts and stakeholders, says new government standards may over-regulate the print and visual media sectors, adding significant cost to packaging, while overseas competitors who do not have the same regulatory requirements will b able to produce and import it at a lower cost than a local manufacturer can provide.
“The fibre-based packaging sector is already leading the way in sustainability, which is compliant from forestry to mill to production to international best-practice standards. Burdening these suppliers, and in turn printers, with increased regulatory costs will have devastating consequences for the industry,” commented Kellie Northwood, CEO, VMA.
“Manufacturing in Australia already has high labour and energy costs – further government regulatory costs will impact local packaging manufacture and lose Australian jobs.
“A packaging product produced in another country without such regulatory costs will be produced and imported at a lower cost than a local manufacturer can provide, and will reduce the very aim of securing more sustainable packaging outcomes for Australian products and consumers.”
The Association maintains that fibre-based packaging is one of the most environmentally sound solutions available, and should be optioned into a self-regulated programme.
The submission also advocates for the Department of Climate Change, Energy, The Environment and Water (DCCEW) to establish advisory working groups, with representation from each relevant sector, to ensure guidelines are adequate and successful, arguing that the current make-up of the Design Working Group (DWG), does not include manufacturers, who are critical technical advisors.
With the Department exploring the option of introducing the Extended Producer Responsibility (EPR) scheme, the VMA highlighted the potential risks of increased costs and competitiveness issues for Australian businesses if regulations do not align with international standards and address Australia’s unique market dynamics.
The VMA says the Labels and Packaging Coalition will continue to provide industry feedback and offer expert advice on drafted policies and potential legislative recommendations at both federal and state levels.
"I extend my thanks to all participants in the Labels and Packaging Coalition. Your direction and expertise have been invaluable in shaping our submission and advancing sustainable packaging solutions,” said Northwood.
