INTERVIEW - EU Chemical Laws May Hurt Industry - Trade Group
Date: 22-Apr-05
Country: UK
Author: Martin Hayes
"We (the metals industry) recognise the need for streamlining Europe's chemicals industry. But REACH, the way it is constructed, is full of unintended consequences," Leyson said in an interview on Thursday.
The EU Chemical Directive, or REACH (Registration, Evaluation and Authorization of Chemicals), is designed to protect humans and the environment from the threat posed by carcinogens or other chemicals that have adverse side effects.
"We share a concern with many that the regulatory system in the EU has got carried away with itself, somewhat," he said.
As well as organic chemicals, REACH covers inorganics -- metals, steel, alloys, as well as the waste and scrap materials used in re-cycling.
"There is a need for regulation in some areas, but it is important it is assessed beforehand. We, with others, have made proposals as to how it should be tackled," Leyson, who was talking before a Eurometaux executive committee meeting, said.
REACH was proposed in October 2003, and is now at the first hearing stage at the European Parliament. It could become law by the end of 2006.
Companies importing metals and raw materials, such as ore, into Europe will have to be licensed by the EU and may have to provide toxicological and risk assessment reports to justify trade in certain materials.
"It will lead to a huge workload to deal with these different services," Leyson said.
IMPACT ON INDUSTRY
The impact could be noticeable on Europe's metals industry, which employs 425,000 people adding 100 billion euros ($130.6 billion) a year to the European economy, and feeding into sectors such as construction and auto-manufacturing.
Many firms which refine ore or treat and recover metals from scrap may consider moving their activities outside Europe, Leyson said.
Leyson, who is also chief executive officer of Belgian metals firm Umicore, said REACH increase costs for his company by five to eight million euros a year.
"That is more than five percent of the profits we made last year."
Eurometaux is stepping up its lobbying, ahead of July 1, when the United Kingdom (UK) assumes the six-months presidency of the EU, and has met with officials from the DTI and DEFRA.
Eurometaux's secretary-general, Guy Thiran, said it had proposed two key changes in the legislation:
-- that it be focused on metals and exclude minerals, ores, waste and scrap, which are covered by existing regulation.
-- that the timing be adjusted, because a three-year deadline is inadequate.
"We are looking for five-to-seven years, as two or three years will lead to a poor outcome," Thiran said.
