PVC producers set to challenge local authority ban on products

Date: 24/09/1998

By Chris Johnstone

EUROPEAN plastics producers have moved to challenge local authorities which are using EU rules governing the allocation of large public contracts to outlaw their products.

German manufacturers of polyvinyl chloride (PVC) have lodged a complaint with the European Commission about the growing number of town halls instructing their purchasing departments to remove PVC producers from short lists and veto construction companies which use it.

Producers of PVC, which is heavily used in the building industry because of its lightness and durability, say the ban is beginning to have a serious impact on their sales. Construction represents around 50&percent; of all PVC sales in Europe.

The challenge, lodged with the Commission's Directorate-General for the single market (DGXV), marks a fresh test for the sensitive issue of how far environment rules and considerations can be used to temper the principle of free movement of goods.

PVC is a key target for environmental groups which have called for a ban on its use unless manufacturers can prove that it can be safely reused or recycled. The Commission is currently trying to draw up EU-wide recycling rules for PVC after deciding that the special problems posed by the product mean that it could not be dealt with under proposed new Union regulations on the recycling of cars.

The case also raises the question of how far existing EU public procurement rules allow environmental considerations to be reflected in the conditions set for tenders or the restrictions demanded.

Green campaigners and MEPs have been calling for a clearer statement that this is possible, as the Commission assesses how the existing rules are working. They have criticised the institution for not moving to firm up the principle of so-called 'green procurement' under its current review.

The Commission brought out a White Paper in March on how public procurement rules should be shaken up, in which it argued that no rewrite was necessary and that environmental criteria could be included in tender requirements as long as they were clearly stated.

Meanwhile, another long-running case which has raised question marks over whether the single market or 'green' issues should be given priority looks likely to be settled soon, this time in favour of the environmental lobby.

Germany's move to encourage drinks manufacturers to put their products in reusable bottles rather than throwaway plastic ones as part of a recycling scheme was challenged by drinks producers outside the country as a obstacle to the single market.

They argued that demands to set up local bottle-recovery operations hampered their sales and amounted to a clear case of discrimination.

The case sparked bitter clashes between the Commission's internal market and environment departments, with the latter defending Germany's action.

However, the main responsibility for the case has now been transferred to environment officials on the grounds that harmonised EU rules for the packaging industry have been put in place.