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August 13, 2007

SWEEP: Foxes And Hen Houses?

An email from a reader raises some provocative questions;

It appears that the manufacturers of electronics have teamed up with a compliant Sask. government to create a so called recycling program, with little input or involvment from environmental organizations and could be beyond public scrutiny.

How did Saskatchewan eWaste program and the governing body SWEEP come into existence? Well, it all started with a group of electronic producers forming EPSC (the Electronic Producers Stewardship Council). (see: http://www.epsc.ca/about.html)

Note all the industry members:

The founding members of EPS Canada are 16 leading electronics manufacturers: Apple Canada Inc.; Brother International Corporation (Canada) Ltd.; Canon Canada Inc.; Dell Canada; Epson Canada Ltd.; Hewlett-Packard (Canada) Co.; Hitachi Canada Ltd.; IBM Canada Ltd.; Lexmark Canada Inc.; LG Electronics Canada; Panasonic Canada Inc.; Sanyo Canada Inc.; Sharp Electronics of Canada Ltd.; Sony of Canada Ltd.; Thomson Multimedia Ltd.; and Toshiba of Canada Ltd. The organization was created through the joint efforts of the Information Technology Association of Canada (ITAC) and Electro-Federation Canada (EFC).

Please also note the complete lack of environmental organization representation.

In a speech made by Vice Chair, Andre Hudon in Toronto, Ontario, on November 14th, 2003 (see: http://www.epsc.ca/pdfs/hudon_welcome_speech.pdf)

Andre states: 'We represent over 90 percent of the lap top computer, printer and television market. We represent all desktop manufacturers with significant market share. We see EPS Canada as the industry organization to be called upon to work with the regulating authority for program implementation.'

Clearly, the EPSC represent the electronics production industry.

Could it be possible that EPSC and its member companies might attempt to lobby Government to exert influence over environmental policy to negotiate favorable environmental legislation for the large corporations?

See a Speech by President and CEO of EPSC and SWEEP Executive Director David Betts here (http://www.epsc.ca/pdfs/CCME_Speech.pdf) where he says 'We have a window of opportunity to influence that legislation'.

Also according to a speech made at E-Scrap by EPSC President and CEO David Betts in Orlando Florida on October 22nd 2003 (see last paragraph of this document: http://www.epsc.ca/pdfs/betts_orlando_speech.pdf ; 'We believe our approach of seeking the most cost effective and environmentally responsible program through consultation with governments will deliver the best results for our industry.'

(Please Note: Not best results for the environment. Not best results for the public's best interest, but the best results for 'Our industry'.)

It certainly appears that the EPSC will be exerting its influence with respect to environmental legislation and be on the look out for the best interests of the EPSC member companies.

I wonder, is there a government anywhere in Canada willing to compromise and play ball with such a self centered self promoting industry organization?

In, Feb 2006, EPSC submits an industry led product stewardship plan to the Government of Saskatchewan. In May 2006, the Government of Saskatchewan approves the stewardship plan submitted. (Well, it appears that the EPSC has found its compliant Government.)

Shortly there after, EPSC then creates a non profit organization called SWEEP to administer the plan.

Now, let's have a look at the board of directors of SWEEP:

We see Sean DeVries of Panasonic Canada as Chair, Nick Aubry of Sony Canada, Rebecca Brown of Dell Canada, etc, etc, etc and David Betts of EPSC as Executive Director. Oh, wait a moment, let's have a look at the board of directors of EPSC. (See: http://www.epsc.ca/a_board.html) We see the brands of Dell Canada , Sony Canada , Panasonic Canada listed (amongst a few other well known brands such as HP, Toshiba, etc) and David Betts as President and CEO of EPSC. (David Betts has recently stepped down and has been replaced)

What is up with this? Many of the same people and companies of EPSC are also represented on the board of SWEEP. It would appear that the industry not only makes products, but it is now in charge of the disposal of the same products they make. Have the foxes just been put in charge of the hen house?

Can we trust electronic producers to police? Has our government sold our environment out to product producers or representatives of producer's interests? How independent and arms length is this program, and does it represent the public's best interests? Or does this ewaste program reflect only the interests of the corporations behind it?

These might be some very tough questions to put to the Minister responsible.

Who is exactly paying for development of the SWEEP program? Again, I refer to Mr. David Betts' speech in Orlando : (see: http://www.epsc.ca/pdfs/betts_orlando_speech.pdf) and I quote: 'We consider the financing we have received an advance that will be paid back to members following program introduction.'

Just how much money raised from Ewaste recycling fees are being diverted to repay EPSC and it's member companies? Can the general public who is PAYING ewaste fees every time they purchase a computer or television review or audit the funds and how they are spent?

According to the regulations (see: http://www.qp.gov.sk.ca/documents/English/Regulations/Regulations/E10-21R4.pdf) the Minister of Environment has the power to administer, suspend, change or amend the program in the best interests of the public. In fact, if you look closely at 5(1) to (3), all the power of this regulation rests soley with the Minister of the Environment. I think he will have much to answer for if the Sask Ewaste program turns out to be just another half hearted Green program.


Hmmmm.....

Here's more.

And in the comments, John Chittick sums it up nicely - "There's no problem with the concept of Life Cycle Management but a closed loop of corporate rent-seekers enshrined into coercive regulations doesn't allow the free market to function."

While SWEEP is governed by reporting rules under the rules governing non-profits, they are not subject to provincial audit. Further comments from reader mail:

How did SARCAN get the contract for collecting and processing eWaste? Can the minister please produce a copy of the tender?

Lots of discussion, pro and con, in the comments.

Tuesday update: a reader from another province has further observations;

I work for one of the companies engaged in this project and from the
information I was able to gather, it would appear as though electronics companies have formed a united lobby for the purpose of implementing consistent universal regulations for the recycling of electronics, which will generally work in the company's favour.

It seems they may have picked up the scent of impending regulatory restrictions and decided to pre-empt with their own lobby, in order to shape the manner of the regulations.

The existing program in BC involves an environmental levy being charged on electronics sold in the province, and submitted to the government to subsidize their recycling program. Our company employs an Environmental Ambassador who's full time job is to coordinate programs like this. He is currently engaged in the task of directing each of our retailers to institute a program which will see them submit the levy to the government on our behalf, for each purchase made through their store, thus avoiding the need for us to track purchases and submit the fees ourselves. As
of August 1, all electronics purchases will have this levy charged at point of purchase but the program for submitting to the government does not appear to be in place yet and there seems to be some ambiguity regarding how this program will be administered.

Speaking strictly for my company, I find it staggering the number of restrictions and costly measures this company voluntarily inflicts upon itself, in order to bolster its green credentials. They are eager to implement anything which serves their interests but ofttimes their interests lean more towards being green than being capitalistic. Then again, in these eco-frantic times, maybe being green is the most capitalistic measure.

Posted by Kate at August 13, 2007 11:08 AM
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Comments

Thanks Kate. Despite all of your hard work and investigation, there will be complete silence from the MSM and the environmental fascists.

Posted by: Jim O'Brien at August 13, 2007 11:49 AM

...i smell a SweepScam in the works.

Posted by: tomax7 at August 13, 2007 11:51 AM

Not my work, Jim. I'm only giving it exposure. The credit belongs to the reader, (as it usually does around here.)

Posted by: Kate at August 13, 2007 11:51 AM

Its worse than you think Kate.

There's more gold and other valuable metals in e-waste (by weight)than there is in ore fresh from the mine. They're getting us coming AND going.

We should not be paying an e-waste tax, they should be buying e-scrap by the pound. The Chicoms have a whole (really filthy) industry based on e-scrap. The stuff is worth money!

Posted by: The Phantom at August 13, 2007 12:01 PM

"Many of the same people and companies of EPSC are also represented on the board of SWEEP. It would appear that the industry not only makes products, but it is now in charge of the disposal of the same products they make. Have the foxes just been put in charge of the hen house?
"....

Hold on there Chicken Little - from my perspective - this looks like the Farmer who built the hen house cleaning up the Chicken S*** in the barnyard.

Isn't a good idea for the producers of the products be responsible for cleaning them up after they're no longer of use? That's just good business. Unless of course you subscribe to the concept that only unelected NGO Greenies are the groups to clean up after the rest of us..

Posted by: Coop at August 13, 2007 12:05 PM

I agree with Coop.
There is a concept gaining ground in manufacturing circles called product life cycle management. THe gist of it is that the manufacturer is responsible for the product from the time it is sold until the time it is disposed of, not just the time they sell it. It links the cost of the disposal to the parties best able to include that cost in the product, ie the manufacturer.
Including the ultimate cost of disposal as part of the product cost would only make sense, and at the end of the day, I trust the manufacturers at least as much, if not more, than some other government agency to get it right.

Posted by: Jethro at August 13, 2007 12:11 PM

...while you have a good point Coop, the way things started and lack of external input means the table is slanted.

Posted by: tomax7 at August 13, 2007 12:22 PM

I think I'd rather trust the companies to do what is in their financial interest to do more than I'd like to see public money go to the fricken greenpeace wackjobs.

At least if the money is wasted on going to profits you can buy stock in private companies. The greenpeace money is down the toilet.

Posted by: Warwick at August 13, 2007 12:27 PM

And why should multinational, unelected, self-serving environmental NGOs have an input to this process?

Posted by: Wimpy Canadian at August 13, 2007 12:28 PM

I don't have a problem with companies being in charge of recycling their own products. But in Saskatchewan, there is a gov't mandated fee added to each purchase of a new TV, etc. that consumers don't have the option of paying to fund it.

If the government is going to legislate we pay extra up front, then we deserve transparency.


Posted by: Kate at August 13, 2007 12:36 PM

There's no problem with the concept of Life Cycle Management but a closed loop of corporate rent-seekers enshrined into coercive regulations doesn't allow the free market to function. If it's such a good idea for the consumer and the environment why not simply disallow e-junk from landfills and allow market competition. If large suppliers can afford to recycle the value out of the e-junk then there's likely room for more efficient competitors and if not, more power to them.

Posted by: John Chittick at August 13, 2007 12:38 PM

...we have the same taxes here in Alberta, along with automotive tires and if you go into a car shop, there is "environmental disposal charges" on top of shop rags, supplies and such.

Correct me if I'm wrong, but we don't have anything in place anymore regarding tires and computer parts.

Some stores used to take laser printer cartridges but now don't. Recycling costs money, there is no profit in recycling and having the fox guard the hen house...

Well the Manitoba bottle pile (down a few posts) might become part of Alberta's landscape regarding electronic handling.

Or we could ship our (and do) electronics to China where poor people are walking and working unprotected in lead laden water and gunk from hacking them up.

Posted by: tomax7 at August 13, 2007 12:41 PM

It seems to me the the industry took the initiantive in setting this program up. They ought to have the freedom to administer it. Putting an "environmental group" on the board may increase transparency but it will certainly increase showboating.

If Saskatewan is the first province where industry has set up this program, it should be the last province where they lose control of the program.

(That said, it would be nice if the industry voluntarily set up processes to ensure transparency.)

Posted by: Peter_E at August 13, 2007 12:43 PM

I'll be watching this for similar action in the USA. Looks like our Canadian friends get to test the waters on this. Good Luck all...

Posted by: Orlin at August 13, 2007 1:25 PM

Hold on there Chicken Little - from my perspective - this looks like the Farmer who built the hen house cleaning up the Chicken S*** in the barnyard.
Posted by: Coop at August 13, 2007 12:05 PM

Coop -- I could't be more in agreement, and what a terrific anaology. Nothing wrong here Kate except the "environmentalists" who lie and dissemble about "the public interest" are pi**ed they were left out of the loop. Beautiful. Can I stand any more good news on a Monday!

This is CSR -- Corporate Social Responsbility, one of the left's most cherished causes -- in living action. This is "let's clean this up" before being descended upon on by clueless do-gooders with nutty rules.

Whoever sent you that e-mail was manipulating you -- looking for a kneejerk reaction on apparent government-corporate collusion against the consumer -- which he got.

Don't get me wrong: we need to be extemely wary about corporate rent-seeking through the regulatory process. This is a non-issue though.

And notice the "scary" list of big bad corporations. Dead give away.

Posted by: Me No Dhimmi at August 13, 2007 2:04 PM

The GLOBAL WARMING SCAM Hey next time you get that junk mail from the various eco-wackos urging you to send them $500 to save the wacko vallley teesee fly just recycle it instead

Posted by: spurwing plover at August 13, 2007 2:34 PM

Whether the surcharge on electronics makes sense given the value of the waste material, is a different issue but someone was eventually going to get this contract. I don't see how these guys are any more objectionable than anyone else. Environmentalists are just upset because no one asked for their opinion - for me that is an advantage, not a disadvantage.

Posted by: EricP at August 13, 2007 3:32 PM

Coop -- I could't be more in agreement, and what a terrific anaology. Nothing wrong here Kate except the "environmentalists" who lie and dissemble about "the public interest" are pi**ed they were left out of the loop. Beautiful. Can I stand any more good news on a Monday!

20 + years or so ago when I started recycling I used to show up with my bags of cans bolltes etc and they would pay me. Now the govt does is and I don't get a dime.

If they want to do it fine but it deserves transparency, infact they should brag about the numbers if they are not it's a fraud.

Posted by: DrWright at August 13, 2007 3:34 PM

Interesting all the protagonists are electronics multinationals who DO NOT MANUFACTURE in Canada...as a matter of fact 4 of these companies are largely responsible for killing Canadian electronic manufactures with sub cost dumping.


Frankly any industry minister who has worked in the private sector should tell them to collectively get stuffed until they manufacture here for the Canadian market.

Posted by: WL Manckenzie Redux at August 13, 2007 4:06 PM

As a sysadmin in a large Manitoba K-12 school division, I welcome industry initiating real electronics recycling programs. (If not recycling, even responsible disposal) Currently, there's no real solution for disposing of old systems, and we have countless old CRT monitors, and ancient (+10 years old) systems that we legally can't dispose of.

I have far more faith in a for profit company than I do in an environmental organization. At least the company has a history of some competence.

Posted by: Adune at August 13, 2007 6:11 PM

An industry (or profession) regulating itself is nothing new. It even makes sense in that the players know the industry, what is possible or even conceivable. Kyoto goals come to mind here. I agree that since it is also on the taxpayer's dime then it would be nice to have an impartial eye on the operation to ensure that all parties (including taxpayers) interests are addressed.

Posted by: Texas Canuck at August 13, 2007 6:25 PM

The electronics industry has spear headed environmental industry standards and most are certified in ISO 14000.

....they have been handling the safe disposal of their prduction electronic fallout scrap for decades maybe their products should have an end of life return policy for responsible industry scrapping so the factories can cope with their end of life production as they do their in production scrap...same materials, same disposal process.

Posted by: WL Manckenzie Redux at August 13, 2007 7:16 PM

I've got a 19" monitor in my garage I'd like to get rid of. Of course, that's not nearly as bad as my friends down the street who are waiting for their garbage and recycling to get picked up by our friends from CUPE.

Posted by: Sheldon Kotyk at August 13, 2007 7:36 PM

Brilliant! (NOT sarcasm) A job that needed doing, and the companies found a way to make a (mega)buck - which is their main purpose.

...of course, the gov't is acting like a drunken fool.

And riffing off what Texas Canuck said @ 6:25 PM...If you have no objections to doctors, engineers and lawyers self-regulating (modern guilds), then why should you complain about these companies? There is the same degree of self-interest involved.

And that's what current recycling programs are all about: getting someone else to foot the bill. First rule of (modern) business - OPM..."other people's money"

Posted by: Tenebris at August 13, 2007 8:09 PM

'The electronics industry has spear headed environmental industry standards and most are certified in ISO 14000.'

I could get my sphincter ISO 14000 certified. It would still produce crap and it could be flushed, or with a slight improvement to iso14001 - composted. Big deal! It's still crap!

'All electronics are broken down into component materials and sent for recycling. Steel, plastic, aluminium, copper, unleaded glass, and cords are melted down and remanufactured into their base materials. Disk drives are rendered inoperable before they are shredded and processed back into component metals. Batteries go through a process that separates the metal housing from the chemicals inside, and both are manufactured back into batteries. Laptop screens have any mercury-based bulbs removed before the materials are recycled into base materials. Leaded glass, like what is found in glass-fronted monitors and televisions, is crushed and sent to a lead smelter to recover the lead housed inside. Circuit boards are shredded and have their precious metals separated and purified through chemical processes.' From the SARCAN FAQ:(http://www.sarcsarcan.ca/sarcan/faqs.php) What happened to the three R's of recycling? This is a direct to smelter program Greenwashed to appear as a fuzzy feel good. EHF is just another form of Carbon Offset Scheme.

Posted by: Hopper at August 13, 2007 8:22 PM

"What happened to the three R's of recycling"?
are you wanting them to recycle the old computers back into use? They're pretty much useless as used computers. It's more profitable to put them on a barge and sell them to China (who melts them down) than to sell them on the used computer market to be put into use. So a consortium of producers of this stuff would like to do this to the garbage themselves, and do it in a much cleaner way than China. And it will create jobs. And North American companies will make profits, instead of Chinese companies. What's the problem?

Posted by: pete at August 13, 2007 11:01 PM

pete,

The problem is, if you call it a problem, is that it's all going to China anyway. Do you know of any NA plant that recovers metals from MB's?

India is the big place that recycles monitors ... TV's if you can believe it.

Posted by: ural at August 13, 2007 11:30 PM

Alberta, IIRC, already applies a "recycling fee" up-front to computers and electronics. If there is so much value in this e-waste, why is it necessary to rape consumers with a fee? The industry should be bidding for our scrap.

The downside to this "life-cycle" concept is that there is no incentive for manufacturers to build durable products that can be upgraded and repaired as necessary; quite the contrary, it is an incentive for them to turn out cheap junk, and to not support it once a minumum time has passed. We already see that in the case of computer printers, where it is becoming cheaper to buy a new printer, in some cases, than to get new ink cartridges for the old one. So we are "recycling" several pounds of plastic and metal scrap for want of few grams of ink.

Another thing: while it may not concern a great many people, there are a few of us with a historical bent who like to collect examples of old technology, be it automobiles, guns, radios, or computers. Heck, there are fan and toaster collectors out there! Forced recycling schemes like this can do incredible damage to the pool of future collectibles. Any readers here who still have some early-generation home computer products? Hang on to them, they may have collector value some day.

Posted by: gordinkneehill at August 13, 2007 11:44 PM

Pete, don't be daft. Where do USED computers come from, are they made in the Used computer factory over in China? Perhaps they are made right next door to the USED CAR factories in Windsor and Detroit. (typed on a used laptop, bought off lease).

Posted by: Hopper at August 13, 2007 11:44 PM

And before PEARL HARBOR we were selling scrap metal to JAPAN they used it to make bombs and used it on PEARL HARBOR yeah some of those PEARL HARBOR survivors had a bit of a model A fender in them

Posted by: spurwing plover at August 14, 2007 12:39 AM

Isn't a good idea for the producers of the products be responsible for cleaning them up after they're no longer of use? That's just good business. Unless of course you subscribe to the concept that only unelected NGO Greenies are the groups to clean up after the rest of us

I think I'd rather trust the companies to do what is in their financial interest to do more than I'd like to see public money go to the fricken greenpeace wackjobs.

It seems to me the the industry took the initiantive in setting this program up. They ought to have the freedom to administer it. Putting an "environmental group" on the board may increase transparency but it will certainly increase showboating.

This is CSR -- Corporate Social Responsbility, one of the left's most cherished causes -- in living action. This is "let's clean this up" before being descended upon on by clueless do-gooders with nutty rules.

Environmentalists are just upset because no one asked for their opinion - for me that is an advantage, not a disadvantage.

Why so quick to disparage environmental groups? They're the ones who spent decades pressuring these companies to adopt CSR principles and take responsibility for the whole product life cycle. It's because of environmental advocacy, most of it ignored until recently, that such ideas are now gaining ground.

Any why do folks here think the environmental agencies want to be involved in the actual administration of the program? They also want the companies to do it themselves, they just want to ensure that it's properly conducted and not just greenwashing.

From the SWEEP FAQ: "The program will utilize the province wide Sarcan system of collection depots where consumers can drop off unwanted computer equipment and televisions without charge. The collected equipment will then be recycled in an environmentally sound manner."

Seems reasonable that some external body be involved to ensure that the regulations and programs do in fact prioritize the most "environmentally sound" recycling methods, rather than, say, the most financially profitable ones. And who better to do so than the NGOs who first got this ball rolling decades ago?

Posted by: Smoke at August 14, 2007 4:24 AM

I do like the "without charge" part. The charge is up front. There is no refund for complying. So, given the choices, I'll toss my dead monitor in the garbage bin at the dump. Costs time and money to take it to Sarcan.

Posted by: Kate at August 14, 2007 8:46 AM

"I could get my sphincter ISO 14000 certified. It would still produce crap and it could be flushed, or with a slight improvement to iso14001 - composted. Big deal! It's still crap!"

I think you also talk from your sphincter and it shows. And spreading your cheeks to read you miss a lot too.

If you have never had any experience in dealing with production fall out waste management in a large scale e-manufacturing plant under ISO 14000 how could you possibly know what dealing with electronic waste or what I'm proposing is all about>

I have scrapped tons of stuffed PCBs, CRTs drive sub assemblies, large scale PCB chassis and I can tell you all the facilities to do it cost effectively and safely are right in the production facility and in the waste management systems we have now....Multinational consumer electronics manufacturers should have an end of life contract for proper disposal on the product sold into this jurisdiction.

This EPS proposal is just a scam to sell new services and consolidate Market share.

Posted by: WL Manckenzie Redux at August 14, 2007 8:50 AM

More third way socialism.

Posted by: ol hoss at August 14, 2007 9:21 AM

RE: There's no problem with the concept of Life Cycle Management....

Unless one is in the concrete business.

Posted by: Patina at August 14, 2007 10:49 AM

Smoke: CSR -- Corporate Social Responsbility (which I used ironically) actually means pressuring big bad corporations to waste their evil shareholders money, or, put another way, to transfer their at risk wealth to "stakeholders".

It's a form of genteel embezzlement.

You're right tho: the greens deserve much credit for their early efforts, but also of course all the credit for the deaths of 10s of millions of poor Africans from malaria (totally unscientific DDT ban).

Posted by: Me No Dhimmi at August 14, 2007 11:23 AM
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