Could you tell us a little about the corrugated packaging parliamentary reception and its aims and objectives?
This is the fourth time that the CPI corrugated sector has held a parliamentary reception, so we're very pleased that it's now a regular, annual event for us.
It's part of our programme to engage with parliamentarians, which in turn is part of a broader strategy to promote corrugated packaging as essential to society. Corrugated is an extremely environmentally sustainable form of packaging, which has a very important role to play not only in protecting goods, but in terms of reducing carbon footprint throughout supply chains as well.
We have received a very good response from parliamentarians, with 22 MPs confirmed already. These include Conservatives John Penrose and Tony Baldry, Labour MPs Katy Clark and Tom Harris, and Mike Crockart from the Liberal Democrats.
What are the biggest challenges facing the corrugated packaging industry today?
We face many and varied challenges as an industry, however the first and the largest is the impact of cumulative regulation.
The coalition government intends to be the 'greenest government ever', and part of achieving that lies in environmental legislation and regulation. While we believe that this aim is entirely laudable and appropriate, the cumulative impact of many pieces of environmental legislation means there is a very heavy financial and regulatory burden placed on industry.
One of the messages we are trying to put forward to parliamentarians is that there can be conflict between being the 'greenest government ever' and calls for supporting manufacturing. If the two aren't taken into consideration together, then they could simply work against each other. As such, we are asking the government not to refrain from implementing legislation, but to make sure that it is done in a way that is more sympathetic to the manufacturing industry than we have seen thus far.
Other issues we are facing relate to the quality of the paper we are using. In the case of corrugated packaging, the paper usually comes from recycled materials, which means that the quality of recycled paper in this country is very important to us. This country's system of collecting materials together through the process of comingling is not necessarily a bad one, but it does require a second stage of sorting. This second stage can be done effectively, however if done poorly it can lead to issues around paper quality. This is of particular importance as the UK currently exports over half of all the paper collected for recycling, and other countries are becoming increasingly conscious of the quality of the materials they accept.
More broadly, we also face hurdles because of the perception of the packaging industry in general as excessive or wasteful. This is frustrating, because people in society expect to receive goods arriving safely to them from all over the world, without any regard for the importance of packaging in achieving this. We like to remind people that packaging is important, and that corrugated remains the preferred packaging choice in both the UK and the World.
That said, we are starting to see some changes in this debate around packaging, largely due to the increasing consciousness of the environmental impact of food waste and product damage. There is good evidence to show that the impact of these is greater than the environmental impact of packaging, so investment in getting packaging right can have much broader benefits for society.
What is the industry doing to ensure that it remains relevant in a world that is more aware than ever of the environmental challenges it faces?
Within the corrugated packaging industry, we hold a very good environmental record, so we like to think that we are starting from a very sustainable point. We recycle more than 80 per cent of the corrugated that's available in the UK, and 75 per cent of the paper that goes into corrugated boxes in this country has already been recycled. We have such a good recycling system that a box can be recycled, turned into paper, and be back on shelf as a new box – potentially in the same store – within 14 days.
However, despite our environmental achievements, we aren't by any means resting on our laurels. We are investing in improvements in energy efficiencies, and technical developments to achieve the same strength in paper but with a lighter weight, both of which combine to lead to reduced fuel transportation costs and a significant reduction in the carbon footprint at all points in the supply chain.
What is the CPI doing to support government policies on manufacturing growth? What effect will these policies likely have on the industry?
We have registered with the
Dods Manufacturing Dialogue, which brings together very big players in the industry, and enables us to engage with parliamentarians at a very high level. This year, Dods has conducted research for us across consumers, industry and Parliament, to better understand the perception of manufacturing, the relationship between manufacturing and the economy and what the future holds for the industry. This research has then fed into a series of roundtable meetings in Westminster and Cardiff and engagement at the party conferences, which has allowed us to develop a concluding report with five policy recommendations for government.
At the Dods parliamentary reception in November, we will be encouraging parliamentarians to explore and understand our policy recommendations, including our proposal to encourage a greater uptake of science and mathematics subjects in schools, and our recommendation for greater support for small to medium enterprises.
Do you feel that parliamentarians pay enough attention to the challenges facing corrugated packaging and the paper industry as a whole? What more can be done to promote these specific issues?
The simple answer is no, I do not believe they do currently pay enough attention to the problems faced; however there are some promising signs.
Some key parliamentarians are listening and open to hearing messages from the corrugated and broader paper and manufacturing industries. We have been able to develop some very positive relationships with relatively junior backbenchers, who have visited plants in their constituencies and have attended our receptions, and even asked questions in the House to support the case for corrugated packaging.
Beyond that, we are also seeing some important developments at a more senior level: speaking at the Conservative party conference, the chancellor of the exchequer indicated that regulation in the manufacturing sector should not come at the cost of supporting the industry and enabling growth in the economy. This was a very welcome step, and I am feeling much more optimistic regarding the coalition's approach to manufacturing. Ultimately, we are seeking a light touch from regulation and a chance to grow.