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Reuters EU Draft Chemicals Law to Pass Hurdles This Year

Date: 28-Apr-05
Country: BELGIUM

The EU's proposed REACH legislation (Registration, Evaluation and Authorisation of Chemicals) was designed to protect people and the environment from adverse side effects of chemicals. It would require the testing and licensing of thousands of commonly used substances across Europe.

EU Industry Commissioner Guenter Verheugen said REACH would likely pass through its first assessment by the European Parliament and ministerial groups by the end of 2005.

"We are seeing already the light at the end of the tunnel," he told reporters after a meeting between Commission officials and representatives from industry and environmental groups to discuss a report assessing the proposed law's impacts.

"We have a very, very good chance to finalise it before the end of the year."

But disagreement over the costs and benefits of the landmark legislation remained. Environmental groups and Commission officials said the report showed the costs of REACH would be less than industry had feared.

But the European Chemical Industry Council (CEFIC) and industrialists' lobby UNICE disputed that on Wednesday.

"We disagree," said Klaus Mittelbach, chairman of the UNICE chemicals taskforce, referring to the study carried out on behalf of industry by audit, tax and advisory firm KPMG.

"It did not to any extent concentrate on cost. We concentrated on mechanisms and how business works," he said.

The study was officially released on Wednesday.

Industry called on the EU to simplify REACH and emphasised that somewhere along the supply chain from chemical producers to companies using chemicals in their products the costs of the legislation would have to be absorbed.

"The study shows that there is some kind of hot potato to be passed somewhere and that is the cost," said CEFIC Director General Alain Perroy at a news conference.

The KPMG study focused on four sectors and their suppliers -- automotive, organic and inorganic materials, flexible packaging and electronics. It covered materials from engine oil to cement.

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