IoD warns WEEED bad for business

Under the EC Directive, known as WEEED – Waste from Electrical and Electronic Equipment Directive – which plans to regulate IT equipment disposal, product manufacturers will be responsible for taking back and recycling IT equipment.

With the directive still being debated, the Institute of Directors has warned that it will place a substantial burden on industry.

‘We expect it to be adopted by the middle of next year, and come into force shortly afterwards. It is not too late to influence the outcome, but firms should be prepared for it,” said Geraint Day, business research executive at the IoD.

The Industry Council for Electronic Equipment Recycling told the Department of Trade and Industry that the annual costs of compliance for UK business would be Pounds 2bn.

According to the proposals, producers of electrical electronic equipment will be responsible for recycling the equipment as part of the EC’s environmental improvement campaign.

The proposals will impose substantial burdens on manufacturers, resellers warned Day. There would also be redesign costs, he added, as manufacturers seek new ways of producing kit that is easier to dispose of.

‘The Commission has openly acknowledged that these costs will be passed on to users,’ he said.

There will of course be some winners. The legislation will provide a whole new customer base for firms specialising in IT equipment disposal.

‘We are getting interest from large manufacturers, their resellers, and large enterprises, all concerned about how they will comply with the legislation,’ said Phil Reakes, managing director of IT asset management firm, Selway Moore.

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