Chemical proposals cause adverse reaction
New EU rules aimed at regulating the chemical sector will disproportionately affect smaller operations and generate a mountain of unnecessary paperwork, according to the Polish Chamber of the Chemical Industry (PCCI).
Research indicates that the new legislation, known as REACH-an acronym for Registration, Evaluation and Authorization of Chemicals- may even push small-scale operators out of business.
Data collected by the Industrial Chemistry Research Institute for the PCCI suggests small companies (those employing an average production staff of 40) will face a 59 percent increase in production costs associated with implementation of REACH regulations. Medium sized firms (with an average of 100 employees in the plant) would be hit by a 21 percent hike in costs, while large companies (with an average on site workforce of 750) would experience an 11 percent increase.
The new regulatory framework, which is currently at the proposal stage, would affect enterprises manufacturing or importing more than one tonne of a chemical substance per year, requiring them to register it in a central database.
REACH sets out to promote health and environmental protection, while "maintaining the competitiveness and enhancing the innovative capability of the EU chemicals industry."
But critics, though supporting these aims, say in reality extensive paperwork and tests that producers would be required to conduct, instead of improving operations, would simply damage their business.
They say increased costs will harm the competitive prices offered by small plants and result in a reduction in liquidity, which could quickly force small scale producers out of business. Only niche enterprises would stand a chance of survival.
Opponents also highlight what they say is a major inconsistency in the regulations. REACH assess hazardousness on risk level and exposure level in terms of tonnage produced. The regulations in their current form would require extensive paperwork and testing for high-volume producers of low risk substances. But manufacturers of low volume, high risk chemicals would need a minimal amount of administration and testing for registration.
The PCCI's Andrzej Krześlak says the regulation would be "art for art's sake," rather than providing a solid regulatory framework.
Krześlak also notes that many small producers are unaware of the storm of legislation that is gathering over them. "They are like children playing in foggy weather, they do not know where they are, or in which direction they are heading," he said.
Research indicates that the new legislation, known as REACH-an acronym for Registration, Evaluation and Authorization of Chemicals- may even push small-scale operators out of business.
Data collected by the Industrial Chemistry Research Institute for the PCCI suggests small companies (those employing an average production staff of 40) will face a 59 percent increase in production costs associated with implementation of REACH regulations. Medium sized firms (with an average of 100 employees in the plant) would be hit by a 21 percent hike in costs, while large companies (with an average on site workforce of 750) would experience an 11 percent increase.
The new regulatory framework, which is currently at the proposal stage, would affect enterprises manufacturing or importing more than one tonne of a chemical substance per year, requiring them to register it in a central database.
REACH sets out to promote health and environmental protection, while "maintaining the competitiveness and enhancing the innovative capability of the EU chemicals industry."
But critics, though supporting these aims, say in reality extensive paperwork and tests that producers would be required to conduct, instead of improving operations, would simply damage their business.
They say increased costs will harm the competitive prices offered by small plants and result in a reduction in liquidity, which could quickly force small scale producers out of business. Only niche enterprises would stand a chance of survival.
Opponents also highlight what they say is a major inconsistency in the regulations. REACH assess hazardousness on risk level and exposure level in terms of tonnage produced. The regulations in their current form would require extensive paperwork and testing for high-volume producers of low risk substances. But manufacturers of low volume, high risk chemicals would need a minimal amount of administration and testing for registration.
The PCCI's Andrzej Krześlak says the regulation would be "art for art's sake," rather than providing a solid regulatory framework.
Krześlak also notes that many small producers are unaware of the storm of legislation that is gathering over them. "They are like children playing in foggy weather, they do not know where they are, or in which direction they are heading," he said.
